1. From May to October 2022, the Hong Kong Special Administrative Region (HKSAR) saw a decline of 18% in the average air cargo volume from the same period last year, which may partially attribute to the loss of transfer for e-cigarettes and related products from the Chinese Mainland since the implementation of the ban on transfer of e-cigarettes, statistics from the Transport and Logistics Bureau showed.
2. On November 28, the Panel on Economic Development under the Legislative Council of HKSAR and relevant council members discussed the lifting of the ban on the transfer of e-cigarettes in early 2023. Council members were dissatisfied with government representatives' preference for sea-air intermodal transport (starting from Dongguan) but neglecting land-air intermodal transport (starting from Shenzhen). They called on the HKSAR government to work out a land-air intermodal transport plan as soon as possible, which relates to cementing Hong Kong's position as an international transport center.
3. The HKSAR government may announce raising the price of a pack of cigarettes from HKD 59 to HKD 100 by increasing the tobacco tax in the budget in February 2023, said Mr. Henry TONG Sau-cha, Chairman of the Hong Kong Council on Smoking and Health (COSH).
#Europe#
l The British vaping brand Ripple+ plans to acquire offline stores and popularize its brand in convenience stores. It has stored products in more than 850 pharmacies and stores worldwide (including Superdrug and WHSmith stores).
l The market share of the UK vaping industry went up by 23.4% from 2017 to 2021, a survey by the Centre of Economics and Business Research (CEBR) suggested. In 2021, the UK had 17,700 direct and indirect workers in the vaping industry, which contributed a tax revenue of GBP 310 million to the country's fiscal revenue.
# Asia #
l In the first half (H1) of 2022, the Republic of Korea (ROK) sold 1.78 billion packs of cigarettes, up 2% from the same period in 2021 and up 6.4% from H1 2019, posting positive growth for three consecutive years, reported by the Ministry of Economy and Finance, ROK. The sales of e-cigarettes soared by 33% from 2019 to 2021, accounting for 14% of total tobacco sales.
# Oceania #
l Australia has 1.1 million adult nicotine e-cigarette users, while the illegal nicotine vaping industry could be worth more than USD 1.5 billion every year, said the Australasian Association of Convenience Stores (AACS).
l As of October 2022, Australia reported an adult e-cigarette use rate of 5.8% and 88% of users bought e-cigarettes through illegal channels. Over the past five years, the number of Australian e-cigarette users has rocketed by 259%.
l According to the latest New Zealand health survey, 8.3% of New Zealanders smoke e-cigarettes every day, compared with 6.2% last year.
# North America #
l Westchester would become New York's first county to ban flavored tobacco, including popular menthol cigarettes, under a law passed by the county Board of Legislators.
l Canada will impose stamp duties on e-liquid in early 2023. The tax per 30mL of e-liquid is CAD 7 (RMB 37).
#Europe#
- Russia raised the minimum retail price of cigarettes. In 2022, a pack of cigarettes was sold at a bottom price of RUB 112 (RMB 9.8), which will be increased to RUB 117 (RMB 10) in 2023.
- Russia shut down more than 30 illegal tobacco producers due to the Honest SIGN scheme and added a consumption tax of RUB 121.5 billion (RMB 14 billion), said Artem Kiryanov, deputy chairman of the Russian State Duma Committee on Economic Policy.
- The EU is set to introduce a new vaping levy. After its entry into force, vaping products will be taxed at a rate of 20%-40%, based on nicotine content, and a 55% tariff will be levied on products that do not burn when heated.
- The Netherlandish government plans to continue cutting the number of stores allowed to sell cigarettes. Starting in 2024, all Netherlandish supermarkets cannot sell cigarettes and starting in 2032, only tobacconists can sell tobacco products.
- Brussels of Belgium proposed to impose a vaping tax within the EU for the first time. Consumption taxes of member states with lower cigarette taxes will be doubled, according to a draft document from the European Commission.
- The proposal by Irish Minister for Health Stephen Donnelly and Minister for Public Health Frank Finn was adopted. They proposed to impose additional restrictions on the sale and advertising of inhaled nicotine products including vapes.
# Oceania #
- ACT Health Minister Rachel Stephen-Smith said the ACT government promised to treat the use of alcohol, tobacco, and other drugs as a health issue. She noted in a statement, "The government is aiming to minimize the harm caused in our community from smoking and vaping, particularly for young Canberrans." "Reducing supply is a critical component of minimizing harm."
- More than 340 vape products have been removed from the shelves of New Zealand after its Vape Regulatory Authority under the Ministry of Health found some contained excessive amounts of nicotine.
# Asia #
l Vietnam's Health Ministry proposed banning the use of new-generation tobacco products, including vapes and HNB. It believes that these products may produce a negative impact on young people and may incur additional administrative costs.
RLX Technology Inc.
- Shares of RLX Technology Inc. (stock code: RLX) were up 7% at USD 2.20 on November 29, 2022 (EDT). Its U.S. shares rose 76% in November from USD 1.25 to close at USD 2.20 on November 29.
Philip Morris International (PMI)
- Philip Morris Korea Inc. announced that its Yangsan plant in Gyeongnam had begun full production of the new IQOS Illuma series of specialty tobacco products, Teria.
- PMI announced new regional structure and senior management changes. At the end of January 2023, PMI will reassign leaders and adjust business in six regions, including East Asia, Australia, and the PMI duty-free zone.
Altria
- Altria's adjusted earnings per share in 2022 are expected to be between USD 4.81 to 4.89, up 4.5-6% from USD 4.61 in 2021.
KT&G
- South Korean tobacco company KT&G decided to increase USD 35 million of its capital in Turkey this year. According to the decision of its board of directors, KT&G's investment in Turkey will continue to grow with its planned capital increase in 2023 and 2024.
RJ Reynolds
- On November 29, Reynolds and some other tobacco companies filed a request to the U.S. Supreme Court for an emergency order to stop California from enforcing a ban on flavored tobacco products.
British American Tobacco Plc. (BAT)
- According to BAT Malaysia, the illegal tobacco trade in Malaysia has been promoted since Malaysia reopened its borders on April 1. BAT Malaysia called on the government to take concrete action against the illegal trade in cigarettes.
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