Hong Kong lifts ban on e-cigarette transshipment

According to the Hong Kong Economic Times, on June 21, the Legislative Council of the Hong Kong Special Administrative Region passed the Import and Export (Amendment) Bill 2023 on the third reading with 72 votes in favor, 1 vote against and 3 abstentions, including exemptions for alternative smoking products (new tobacco products, including electronic cigarettes) transshipped through Hong Kong by sea, air and land.

In other words, Hong Kong will resume trans-shipment of e-cigarettes from the Mainland to overseas markets by sea, air and road. Regarding the formal implementation time, the Legislative Council of Hong Kong has indicated that the Import and Export (Amendment) Bill 2023, upon its passage, will come into operation on the day it is gazetted as an Ordinance and will be administered, supervised and enforced by the Customs and Excise Department.

Secretary for Transport and Logistics Lam Sai-hung pointed out that apart from the global economy and the epidemic, the ban on trans-shipment of alternative smoking products is another major factor in the sharp decline in Hong Kong's freight traffic. The Mainland is a major producer of alternative cigarettes in the world, and Hong Kong is one of the most important transshipment hubs. In order to maintain the competitiveness of the Hong Kong Airport and consolidate Hong Kong's position as an international shipping hub under the National 14th Five-Year Plan, it is necessary to amend the Ordinance.



It is understood that since Hong Kong banned the transshipment of alternative smoking products through Hong Kong on April 30, 2022, the volume of air cargo in Hong Kong has dropped significantly. From May to December 2022, the average air cargo volume at HKIA decreased by 20%, or about 710,000 tonnes, compared with the same period in 2021, including alternative smoking products and other different types of cargo lost due to the "parallel cargo" operation.

Mr Yi Chi-ming, Member for the Shipping and Transport Sector, also pointed out that the loss of alternative tobacco transshipment business from the Mainland and the cargoes of the combined cargo had caused a significant decline in the volume of Hong Kong exports, which would affect the Hong Kong economy in the long run.