Discussion Summary: HK to re-open transshipment in 2023

On the morning of November 28, 2022, a Legislative Council Panel on Economic Development meeting was held in Hong Kong. At the meeting, the system of supervising "alternative tobacco products" (i.e. e-cigarette products, heated tobacco products, and related products, hereinafter referred to as "e-cigarette" collectively) transshipped from the Chinese mainland through Hong Kong for onward transport overseas was deliberated and Council members were consulted for legislative advice.

Council members present discussed how to permit sea-to-air transshipment, how to use the logistics park in Dongguan, the important role of e-cigarettes in the freight volume of Hong Kong airports, and other key problems.
 

Source: official website of the Transport and Logistics Bureau of Hong Kong

Ban on e-cigarette transshipment may cost Hong Kong HK$1 trillion
 

According to a Council member, Hong Kong's export volume by air totaled three million tons in 2021. Of the amount, 330,000 tons were e-cigarettes, accounting for about one-tenth of the total based on professional estimates. In the first quarter of 2022, the trade value of e-cigarettes hit HK$820 million.

Another Council member surnamed Lam put flesh on these figures. According to him, the ban on e-cigarette transshipment has dealt a blow to the e-cigarette freight industry and is also potentially damaging to the freight of other product categories, especially "light cargo. "That's because air transportation requires a combination of heavy cargo and light cargo. While in the fallout from the ban on e-cigarettes which belong to heavy cargo, light cargo that was transported together before cannot be transported anymore." In total, the consequent loss reached HK$1 trillion.
 

a screenshot of the Legislative Council Panel on Economic Development meeting  Source: live broadcast on the official website of the Legislative Council of Hong Kong

Only sea-to-air transshipment to be permitted to transport goods from Dongguan to Hong Kong
 

Before the ban, 90% of e-cigarettes were transported by land to Hong Kong and then re-exported by air. The way was called "land-to-air transshipment". However, at the meeting, Ms. Pamela Lam, Deputy Secretary for Transport and Logistics of the Transport and Logistics Bureau of Hong Kong and also a government representative, only mentioned the permit of "sea-to-air transshipment"—transporting goods from Hong Kong International Airport Logistics Park (HKIALP) in Dongguan to Hong Kong International Airport by sea. No specific implementation plan on land-to-air transshipment was mentioned at the meeting. Several Council members raised questions about it to Ms. Pamela Lam, but she didn't give direct answers.

She said, "Land-to-air transshipment is only a preliminary plan for the time being. And there is no proper mechanism to implement it. So we still need more time to do research on it. After all, we must ensure the health of our people while resuming the transshipment of e-cigarettes. We cannot make any compromise on public health."

Hong Kong plans to resume e-cigarette transshipment in early 2023
 

According to the document published on the website of the Transport and Logistics Bureau of Hong Kong, in view of the urgency to alleviate the impact of the prohibition of the transshipment of e-cigarettes on Hong Kong's transportation industry as soon as possible, the authority plans to submit a motion to the Legislative Council of Hong Kong for amendments to the legislation on e-cigarette transshipment in early 2023. This was confirmed by some Council members at the meeting.

Miss Pamela LAM, JP, Deputy Secretary for Transport and Logistics 5; Ms Joanne CHU, Principal Assistant Secretary for Transport and Logistics 10; Ms Lydia LAM, Assistant Director-General of Trade and Industry (Mainland); Ms Ida NG, Deputy Commissioner (Control and Enforcement) (Ag.) / Assistant Commissioner (Boundary and Ports); Ms Catherine LAI, Head of Airport Command; Ms Cissy CHAN, Executive Director, Commercial; Mr Ian KWOK, General Manager, Aviation Logistics attended the meeting.

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HK Boosts Amendment on Transshipment Ban Due to Great Loss