Hong Kong may reverse its ban on the re-export of e-cigarettes and heated-tobacco products, reports the South China Morning Post, citing unnamed sources.
In April, the city prohibited the sale, manufacture and trade in alternative smoking products.
Authorities are now reportedly considering amending the law, with an eye on the billions of dollars that trade generates annually.
Hong Kong is close to Shenzhen, the world’s largest manufacturing hub for vapor devices.
Hong Kong authorities confiscated HKD1.23 billion ($157 million) worth of illicit cigarettes to date this year—the largest haul of the contraband in 20 years, reports the South China Morning Post, citing figures from the Customs and Excise Department.
As of Sept. 22 this year, customs officials had seized about 440 million untaxed cigarettes, well above the 427 million cigarettes worth HKD1.19 billion found in the whole of 2021.
If legally imported, this year’s contraband would have generated HKD839 million in tax, according to a law enforcement source.
The source attributed the rise in contraband seizures to the resumption of seaborn logistics after Covid-19 disruptions and a possible rise in the price of tobacco products in Europe.
“As the resumption of seaborne logistics business in May, syndicates have started to accumulate their storage of illicit cigarettes in the city while trying to find buyers in Hong Kong and overseas,” the source told the South China Morning Post.
He said some of the gangs also stockpiled a huge volume of illicit cigarettes in the city as they anticipated a possible rise in the price of tobacco products in Europe amid high inflation.
This year’s seizures reached 440 million cigarettes after authorities discovered 21.6 million untaxed cigarettes worth HKD59 million hidden in two shipping containers in Tsing Yi and Yuen Long in their latest operation on Sept. 19.
Hong Kong police arrested two men, who are being held in custody under suspicion of selling and possessing a poison in Part 1 of the Pharmacy and Poisons Regulations as well as selling alternative smoking products, according to a report in the South China Morning Post. The arrests follow the implementation of a new e-cigarette ban.
The new law went into effect last weekend, banning the import, sale and manufacture of electronic cigarettes, heated-tobacco products and herbal cigarettes. Those caught breaking the law are subject to a maximum fine of HKD50,000 ($6,370) and six months’ imprisonment. Under the law, consumers are still allowed to use vaping products.
Police seized 94 boxes of suspected nicotine-containing electronic cigarette cartridges and 74 smoking devices from a mobile retail outlet in Mong Kok.
“The government appeals to smokers to quit smoking as early as possible for their own health and that of others,” said a Department of Health spokesperson.
Hong Kong’s ban on the importation and sale of alternative smoking products, including vaping and heat-not-burn products, took effect on April 30, reports ABS-CBN.
The Smoking (Public Health) (Amendment) Ordinance 2021 also prohibits using or carrying an activated vaping device in no-smoking areas. Offenders risk a fine of HKD1,500 ($191).
The ban covers electronic smoking products, heated-tobacco products, herbal cigarettes and their accessories, according to The Star.
The ordinance also prohibits the promotion, manufacture and possession for commercial purposes of novel tobacco products. Those convicted of violating the law will be fined HKD50,000 and imprisoned for six months.
Several vape shops have already closed as a result of the ban, according to news reports. Sales before the ban took effect increased dramatically as users stocked up on products before they could no longer buy them legally.
Heated Tobacco Concern Group HK said that the ban could encourage the smoking of traditional combustible cigarettes; about 90 percent of more than 800 vapers polled last year stated they would use traditional cigarettes following a ban on e-cigarettes. The other 10 percent indicated that they would buy alternative products on the black market.
“The new policy has left users with no choice but to smoke traditional cigarettes,” said Joe Lo Kai-lut, convener of Heated Tobacco Concern Group HK. “It is a bad thing for public health … I hope the government will review the policy by looking into other countries’ regulatory measures.”
Hong Kong customs arrested 11 people on charges of smuggling vaping and heated-tobacco products and confiscated HKD15 million worth of e-cigarettes and heated-tobacco products on Friday.
Given Hong Kong’s proximity to Shenzhen—the world’s largest manufacturing hub for vapor devices, authorities are expected to have their work cut out in enforcing the ban.