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Hongkong, China is considering resuming transit trade in e-cigarettes and could lift the ban

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Recently reported in the media in Hong Kong, China reports, that the Chinese Hong Kong Special Administrative Region, China bans the re-export of e-cigarettes and other heated tobacco products to the country- and sea route could be lifted by the end of this year, to promote the associated economic growth.

However, an economist warned on Monday, that the move would damage the credibility of the municipalities, if they fail to deliver on their tobacco control promises and weaken their promotion of public health.

According to smoking regulations 2021, the one in Hong Kong last year, China was changed and on 30. came into full force in April of this year, has Hong Kong, China a complete ban on sales, the production, the importation and advertising of new tobacco products such as e-cigarettes and heated tobacco products. Failure to do so may result in fines of up to 50.000 HK$ and prison sentences of up to six months, but consumers are still allowed to use e-cigarette products.

The smoking regulations 2021 also prohibits the transshipment of new tobacco products by truck or ship via Hong Kong, China overseas, with the exception of air freight and transit freight, that remains on board aircraft or ships.

Before the ban was Hong Kong, China is the most important transshipment point for domestic exports of e-cigarette products. Over 95 % of global e-cigarette production and products come from Hong Kong, China, of that 70 % from Shenzhen. In the past were 40 % of electronic cigarettes exported from Shenzhen to Hong Kong, China and from there shipped all over the world.

The ban has forced e-cigarette manufacturers, to redirect their exports, resulting in a serious decline in Hong Kong's overall goods exports, of China. According to a survey, are annually 330.000 Tons of air freight affected by the ban, was Hongkong, China around 10 percent of its annual air freight exports costs, with the value of re-exports affected by the ban being more than 120 billion dollars is estimated. The Hong Kong Freight Forwarders and Logistics Association, China explained, the ban “suffocates the environment of the freight logistics industry and negatively impacts the livelihood of employees”.

It is valued, that the relaxation of the Hong Kong government's ban on transit trade in e-cigarettes, China will generate billions of dollars in tax revenue every year.

Hongkong, China erwägt die Wiederaufnahme des Transithandels mit E-Zigaretten und könnte das Verbot aufheben1
Frankie Yee, Member of the Legislative Council of the Hong Kong Special Administrative Region of China

Rep. Frankie Yee, who campaigned for the ban to be relaxed, said, that a change in the law also allows the re-export of e-cigarette products on the lake- and airway could allow, since there is now a logistical security system, that prevents, that the products reach the city.

He said: “The airport authority operates a logistics park in Dongguan as a common checkpoint for cargo traffic. It will throw out a huge safety net, to block it. If the cargo at Hong Kong airport, China arrives, The transit cargo is loaded onto aircraft for re-export.”

“Previously, the government was concerned about the risk, that e-cigarette products enter society. This new security system closes the gap for the transport of goods, so that a change in the law is certain.” He said.

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