2Firsts First Look|China to End VAT Export Rebates on Vape Devices and Nicotine in April 2027, Following Earlier Removal for HTP Devices and Nicotine Vapes

Special Report
Oct.12
2Firsts First Look|China to End VAT Export Rebates on Vape Devices and Nicotine in April 2027, Following Earlier Removal for HTP Devices and Nicotine Vapes
China's Ministry of Finance and State Taxation Administration announced on October 12, 2026, that value-added tax (VAT) export rebates for vape devices, nicotine and its salts, and certain non-combustible inhalation products will be eliminated from April 1, 2027. The measure adds four tobacco- and nicotine-related customs codes, including 8543400010, which covers vape devices and qualifying empty pods. China previously eliminated rebates for nicotine-containing vaping products and devices under code 8543400090 in April 2026. According to industry classification information held by 2Firsts, the latter currently corresponds to heated tobacco devices. Export excise tax refund and exemption arrangements will remain unchanged.

Key Points

China issued Announcement No. 29 of 2026 on October 12, removing VAT export rebates for designated vape devices, nicotine and certain non-combustible inhalation products from April 1, 2027.

Four additional commodity codes are covered: 8543400010 for vape devices and qualifying empty pods, 29397910 for nicotine and its salts, and 24041910 and 24041990 for two categories of non-combustible inhalation products.

An earlier measure effective April 1, 2026, removed rebates for nicotine-containing vaping products under code 2404120000 and devices under 8543400090. The latter currently corresponds to heated tobacco devices in industry customs classification, according to 2Firsts.

China's core e-cigarette exports totaled approximately $4.875 billion in the first half of 2026, up 3.1% year over year, while exports of vaping devices and vaporization hardware rose 8.9%, according to earlier 2Firsts customs-data analysis.


2Firsts

October 12, 2026

China will eliminate value-added tax (VAT) export rebates for vape devices, nicotine and its salts, and certain non-combustible inhalation products from April 1, 2027, under an announcement issued by the Ministry of Finance and State Taxation Administration on October 12.

The measure adds customs code 8543400010, covering vape aerosolization devices, to the rebate cancellation list. China previously removed rebates for nicotine-containing vaping products and another device category in April 2026.

Announcement No. 29 of 2026 lists 24 commodity codes in Annex 2. Four relate to vaping, nicotine and non-combustible inhalation products, while the remaining 20 primarily cover bamboo materials, flooring, plywood and other bamboo or wood products.

Vape Devices, Empty Pods and Nicotine Added to 2027 Rebate Cancellation

According to Annex 2, the following four tobacco- and nicotine-related commodity codes will lose VAT export rebate eligibility from April 1, 2027.

HS CodeOfficial Customs DescriptionCorresponding Industry Product Categories
8543400010Devices and apparatus capable of aerosolizing substances in products under heading 24041200 into inhalable aerosols, whether or not equipped with cartridgesVape devices, qualifying empty pods and related equipment
29397910Nicotine and its saltsNicotine raw materials and nicotine salts
24041910Products containing tobacco substitutes intended for inhalation without combustion, containing no tobacco, reconstituted tobacco or nicotineSpecific industry product categories not yet verified
24041990Other nicotine substitutes intended for inhalation without combustionFinished inhalation products associated with alternative nicotine compounds, including 6-methyl nicotine-related products; not an exclusive classification

Note: Official descriptions are based on Annex 2. Industry categories reflect classification information available to 2Firsts. Classification of individual products depends on their characteristics and applicable customs treatment.

Code 8543400010 covers devices and apparatus capable of converting substances in products classified under heading 24041200 into inhalable aerosols, whether or not they are equipped with cartridges.

In the vaping industry, the code covers vape devices and qualifying empty pods.

Code 29397910 covers nicotine and its salts, bringing nicotine raw materials into the latest export rebate cancellation.

Codes 24041910 and 24041990 cover two categories of non-combustible inhalation products.

Code 24041990 is also relevant to products associated with alternative nicotine compounds, including 6-methyl nicotine. However, the code is not exclusive to any one nicotine analogue and does not represent a customs classification for the raw chemical ingredient itself.

China Previously Removed Rebates for Nicotine Vapes and HTP Device Code

China announced its earlier VAT export rebate adjustment affecting vaping-related products in January 2026.

Under Announcement No. 2 of 2026, issued by the Ministry of Finance and State Taxation Administration, VAT export rebates for designated products were eliminated from April 1, 2026.

Two relevant customs codes were included:

2404120000: Products containing nicotine but no tobacco or reconstituted tobacco, intended for inhalation without combustion.

8543400090: Other electronic cigarettes and similar personal electronic vaporization devices.

In actual industry customs classification, products under 2404120000 include disposable vapes, prefilled e-liquid pods and bottled e-liquids, according to 2Firsts' previous reporting and product classification research.

Although the official description of code 8543400090 refers to other electronic cigarettes and similar personal electronic vaporization devices, 2Firsts understands that products currently classified under this code are heated tobacco product (HTP) devices.

By contrast, code 8543400010 covers vape aerosolization devices, including qualifying empty pods, and was not included in the April 2026 rebate cancellation.

The October 12 announcement adds 8543400010 to the cancellation list, alongside nicotine and its salts and two other categories of non-combustible inhalation products.

The two rounds of policy changes cover the following principal product classifications:

Effective DateHS CodeOfficial Customs DescriptionCorresponding Industry Product Categories
April 1, 20262404120000Nicotine-containing products intended for inhalation without combustion, containing no tobacco or reconstituted tobaccoDisposable vapes, prefilled e-liquid pods, bottled e-liquids
April 1, 20268543400090Other electronic cigarettes and similar personal electronic vaporization devicesHeated tobacco devices (HTPs)
April 1, 20278543400010Devices and apparatus capable of aerosolizing substances under heading 24041200 into inhalable aerosols, with or without cartridgesVape devices, qualifying empty pods and related equipment
April 1, 202729397910Nicotine and its saltsNicotine raw materials and nicotine salts
April 1, 202724041910Non-combustible inhalation products containing tobacco substitutes but no tobacco, reconstituted tobacco or nicotineSpecific industry product categories not yet verified
April 1, 202724041990Other nicotine substitutes intended for inhalation without combustionFinished products associated with alternative nicotine compounds, including 6-methyl nicotine-related products; not an exclusive classification

Note: The practical classification of products under 8543400090 as HTP devices is based on industry information available to 2Firsts, rather than an HTP-specific definition in the official tariff wording.

The April 2026 adjustment removed rebates for nicotine-containing disposable vapes, prefilled pods, bottled e-liquids and devices under 8543400090.

From April 2027, vape devices and qualifying empty pods classified under 8543400010 will also lose VAT export rebate eligibility.

The two rounds of measures therefore extend the cancellation across nicotine-containing vaping products, HTP devices, vape equipment, nicotine raw materials and certain other inhalation products.

Export Excise Tax Refunds Remain Unchanged

Announcement No. 29 states that export excise tax policies for affected products subject to excise tax will remain unchanged, with existing refund and exemption arrangements continuing to apply.

China introduced excise taxes on e-cigarettes on November 1, 2022, establishing a 36% rate at the manufacturing and import stages and an 11% rate at the wholesale stage.

The 2022 rules also provided export excise tax refunds and exemptions for qualifying e-cigarette exports.

The latest policy concerns VAT export rebate eligibility for designated products and does not revoke existing export excise tax relief.

The announcement specifies that export rebate treatment will be determined by the export date recorded on customs declarations.

The changes covering the four newly listed tobacco- and nicotine-related codes will take effect on April 1, 2027.

China's Vape Exports Rose 3.1% in H1 2026, With Hardware Exports Up 8.9%

According to earlier 2Firsts analysis of Chinese customs data, China's core e-cigarette exports totaled approximately $4.875 billion in the first half of 2026, up 3.1% year over year.

Exports of vaping devices and vaporization hardware increased 8.9%, while nicotine-containing vaping product exports rose 0.5%.

Under an expanded statistical scope including relevant non-combustible nicotine-substitute products, exports under HS24041990 rose 65.2% year over year.

The device and hardware figures use the broader HS85434000 heading, which includes both 8543400010 and 8543400090. The 8.9% increase therefore cannot be attributed specifically to vape devices classified under 8543400010.

Earlier, China's core e-cigarette exports totaled approximately $694 million in April 2026, down 20.9% year over year and 23.2% from March.

April was the first full month after the initial vaping-related VAT export rebate cancellation took effect. However, cumulative exports for January–April remained approximately 1.5% higher than a year earlier.

Exports subsequently recovered. Under an expanded customs-data definition that included HS24041990, 2Firsts reported approximately $1.047 billion in relevant exports in July 2026, an increase of 16.5% year over year.

Export performance can also reflect overseas demand, shipment schedules, customs declaration timing and other factors. The available figures do not establish the independent effect of the rebate changes on monthly or cumulative export performance.

Vape Device and Nicotine Exporters Face Further Tax Policy Changes

Following the January 2026 announcement, some Chinese vaping manufacturers interviewed by 2Firsts reviewed export pricing, cost-sharing arrangements, shipment schedules and production strategies.

The April 2027 measure will extend the VAT export rebate cancellation to vape devices and qualifying empty pods under 8543400010, alongside nicotine raw materials and two categories of non-combustible inhalation products.

The financial effect on individual exporters will depend on the customs classification of their products, previous VAT rebate eligibility, input VAT treatment, procurement costs and export pricing arrangements.

Announcement No. 29 does not specify the previous VAT export rebate rates for each of the four newly listed codes or provide estimates of the affected export value or number of businesses.

Separately, the announcement also reduces VAT export rebate rates for designated new energy vehicles from 13% to 9%, effective April 1, 2027.

Follow 2Firsts for timely updates on global tobacco and nicotine regulations, market developments and industry trends.

Cover Image Source generated by AI


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