Turnaround in logistics: Hong Kong plans to ease e-cigarette export ban?
Hong Kong is one of the most important hubs for the global e-cigarette industry. Media recently reported, that the Hong Kong Special Administrative Region prohibits re-exportation (Re-Export) of e-cigarettes and heated tobacco products in rural areas- and sea route could be lifted by the end of this year.
For vapers and retailers worldwide, this could mean a significant improvement in supply chains. We from Myvapesite analyze the background for you.
Why is Hong Kong so important for e-cigarettes??
To understand the meaning of this message, you have to look at the production locations. Over 95 % of global e-cigarettes are made in China, being alone 70 % from the metropolis of Shenzhen originate.
Before the strict regulations, about 40 % These products are shipped from Shenzhen directly to neighboring Hong Kong all over the world. Hong Kong acted as the logistical one “Gateway to the world”.
The ban of 2021 and its consequences
With the tightening of the Smoking regulations 2021, the on 30. came into full force in April of this year, Hong Kong imposed a strict ban on sales, Manufacturing, Import and advertising of e-cigarettes.
The problem: The law also prohibited that envelope (Transithandel) by truck or ship. The economic consequences were drastic:
- Logistics slump: The annual air freight volume fell by around 330.000 tons (ca. 10 % of Hong Kong's total exports).
- Loss of value: The value of the affected re-exports is estimated at over 120 billion dollars appreciated.
- Supply chains: Manufacturers had to find expensive and complicated detours, to bring their goods to Europe and America.
The planned solution: Security through logistics parks
The Hong Kong government is under pressure, to stimulate economic growth again. Frankie Yee, Member of the Legislative Council, advocates a pragmatic solution.
The plan provides, a new one Security system to use, to make transit possible again, without endangering the domestic sales ban:
- Logistikpark in Dongguan: A controlled area on the mainland serves as a checkpoint.
- Safe transportation: From there the goods are transported directly and sealed to Hong Kong Airport.
- Direct departure: The cargo is loaded directly onto aircraft, without ever entering the local Hong Kong market.
“The government used to be worried, that e-cigarettes could enter local society. This new safety net closes this gap,” Yee explained.
What does this mean for you as a vaper??
Should this ban on transit trade actually be relaxed?, this would have a positive impact on the international market:
- More stable supply chains: Products could be shipped faster and more efficiently again.
- Cost stability: More efficient logistics helps, to avoid unnecessary price increases due to expensive transport detours.
- Availability: New products from Shenzhen could arrive on the shelves of online shops in Europe more quickly.
At Myvapesite We are monitoring this development closely, so that we can continue to deliver the best products to you quickly and reliably in the future.
