High Levels of Illegal E-Cigarette Trafficking in Russia.

Jul.27.2022
Illegal sales of e-cigarettes and liquids in Russia are at a high level, with up to one-tenth being produced illegally.

According to estimates from the Nicotine Industry Manufacturers' Alliance, the proportion of illegally trafficked electronic cigarettes and liquids is at an alarmingly high level.


On July 6th, in Moscow, TASS reported that in 2021, 1 in 7 electronic cigarettes and 1 in 10 e-cigarette oils in Russia are produced illegally. This was highlighted in a study by SPINI, the Nicotine Industry Manufactures Alliance, which brought together participants in the e-cigarette market.


According to a study, industry associations estimate that one-seventh of electronic cigarettes and one-tenth of electronic cigarette liquids in Russia are illegally produced.


SPINI estimates that the proportion of illegal smuggling of electronic cigarettes and liquid is at an extremely high level. "Russia has a significant number of legal participants who are certainly engaged in dishonest competition with manufacturers and importers of illegal products. At the same time, they sell them under the label of well-known brands," said Dmitry Vladimirov, director of SPINI, quoted in the information.


According to him, gray market imports also pose an additional threat to legal market participants and consumers. In fact, these are legal products, but in the past they were imported through customs without paying taxes and could be sold. Storage conditions may also not be observed, which affects product quality," said Vladimirov. SPIN's research on the volume of counterfeit ESDN markets in 2021 shows that over 49 million fake e-cigarettes were sold in the online sector last year, worth about 25 million rubles in total.


Vladimirov stated that due to a lack of proper control, the black market share is increasing each year. According to experts from SPINI, illegal sales in 2022 could exceed 30 billion rubles, resulting in budget losses of over 5 billion rubles annually.


Solution to the problem.


Digital tagging is considered to be the most effective tool for "segmenting" the SPINI market and protecting the legal department. The "honest label" tag has been in use for many years for cigarettes, another category of "tobacco", and has recently spread to tobacco sticks. It makes logical sense for ESDN and nicotine-free e-liquids to be included in the surrounding areas, and the industry has high hopes for this," said the CEO of SPINI.


He believes that the electronic cigarette labeling experiment that began in Russia on February 15 can be completed ahead of schedule, with the tags being introduced in a mandatory mode from March 1, 2023, starting with a deadline of November 1, 2022. According to the union, this is enough time to sell the unmarked legal balance and prepare the industry.


At the same time, SPIN strongly opposes the proposal to completely ban ESDN in Russia. "It has been repeatedly proven that any ban only fuels interest. These often heard measures only destroy the tax-paying legal sector, and the black market will continue to operate.


This article contains excerpts or republished content from third-party sources, and the copyright belongs to the original media and author. If any infringement is found, please contact us for removal. Any individuals or organizations wishing to reproduce this content should contact the author and refrain from direct reproduction.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

Selangor Government to Decide on Ban of E-cigarette Sales
Selangor Government to Decide on Ban of E-cigarette Sales
Selangor government to decide on ban of e-cigarette sales, citing public health and industry impact. Trend spreading to more areas.
May.27 by 2FIRSTS.ai
Tennessee Vape Registry Bill: 10% Wholesale Tax and Ban on E-Liquids from "Hostile Nations"
Tennessee Vape Registry Bill: 10% Wholesale Tax and Ban on E-Liquids from "Hostile Nations"
Tennessee is considering a bill to establish a PMTA (Premarket Tobacco Application) product directory and impose a 10% wholesale tax on e-cigarette products. The proposed legislation also limits the sources of e-liquid ingredients, which could affect disposable e-cigarettes that use e-liquids from certain countries.
Apr.27 by 2FIRSTS.ai
Kedah state government considers ban on e-cigarette sales, following Terengganu.
Kedah state government considers ban on e-cigarette sales, following Terengganu.
Datuk Seri Muhammad Sanusi, Chief Minister of Malaysia's Kedah state, announced plans to follow Terengganu's move to ban the sale of e-cigarettes and will propose the issue at the state executive council meeting next week. Terengganu's government has already announced a statewide ban on the sale of e-cigarette products starting August 1.
Apr.28 by 2FIRSTS.ai
Expo Watch | Flight Disruptions & Brand Shakeout Lead to Sluggish Dubai Vape Show — Exhibitors Say “It Feels Like a Solo Party”
Expo Watch | Flight Disruptions & Brand Shakeout Lead to Sluggish Dubai Vape Show — Exhibitors Say “It Feels Like a Solo Party”
Attendance declines at World Vape Show Dubai, with exhibitors citing lack of diversity in buyers and growing industry competition.
Jun.19 by 2FIRSTS.ai
Brazilian Police Seize Nearly 20,000 Illegal E-cigarettes In Raid
Brazilian Police Seize Nearly 20,000 Illegal E-cigarettes In Raid
Brazilian federal highway police seized nearly 20,000 illegal e-cigarettes in a routine check, leading to the driver's detention.
Apr.28 by 2FIRSTS.ai
South Africa Market Insights: Distributor MISTLABS to Speak at 2Firsts Global NGP Trends Forum
South Africa Market Insights: Distributor MISTLABS to Speak at 2Firsts Global NGP Trends Forum
On June 6, 2Firsts will host the "Global NGP Market Trends Forum" in Shenzhen, with a focus on e-cigarette markets such as South Africa. The co-founder of MISTLABS, a South African e-cigarette distributor, will share the latest trends and practical insights from the South African market.
May.30 by 2FIRSTS.ai