On the morning of November 28, 2022, the Economic Development Committee of the Legislative Council of Hong Kong held a meeting. During the open discussion at the Legislative Council, alternative smoking products (namely, electronic cigarettes, heated non-combustible products, and related items, referred to as e-cigarettes hereafter) transported from Mainland China to other markets were brought up for regulatory measures, and lawmakers were asked for their legislative suggestions.
During the meeting, members of the council discussed core issues such as the opening up of sea and air transportation, setting up Dongguan logistics park, and the importance of electronic cigarettes in the cargo volume of Hong Kong airport.
Photo source: Official website of Hong Kong Transport and Logistics Bureau.
The ban on the shipment of e-cigarettes may cause an economic loss of HK$1 trillion in Hong Kong.
During the meeting, some lawmakers expressed that the total amount of air exports in Hong Kong's logistics industry in 2021 reached 3 million tonnes, with an estimated 330,000 tonnes being e-cigarette products, accounting for around 1/10 of the total. In the first quarter of 2022, the trade volume of e-cigarette products reached HKD 820 million.
Mr. Lin, a member of the legislature, provided further details on this data. He stated that the ban on e-cigarettes not only affects the e-cigarette shipping industry but also impacts other product categories, particularly "light goods." "Air transportation requires a balance of heavy and light goods. E-cigarettes are considered heavy, and with the ban on their transportation, there is no way to transport light goods." As a result of this, losses have amounted to HKD 1 trillion.
Screenshot of Legislative Council Meeting. Image Source: Hong Kong Legislative Council Official Website Live Broadcast.
Goods from Dongguan are only allowed to be transported by sea or air to Hong Kong.
Prior to the ban, 90% of e-cigarettes were transported to Hong Kong by land and then shipped by air, a method known as "land-to-air transportation." However, at a recent meeting, the government representative from the Transport and Logistics Bureau, Deputy Secretary Lin Yawen, only mentioned opening up "sea-to-air transportation" - transporting goods from the Hong Kong International Airport Logistics Park in Dongguan by sea to the Hong Kong International Airport. The specific implementation plan for land-to-air transportation was not mentioned at the meeting, and several legislators raised questions about this issue to the government representative, but they did not provide a direct answer.
Lam Nga-man stated, "The current plan for land and air transportation is only a preliminary proposal and there is no implementation mechanism yet. We believe that it will take some time for us to conduct further research. We hope to ensure the health of the citizens while transporting the waste, which is an absolute priority and cannot be compromised.
Hong Kong plans to resume the transportation of electronic cigarettes in early 2023.
According to documents released on the website of Hong Kong's Transport and Logistics Department, the department plans to submit proposals to amend the Electronic Cigarette Transportation Ordinance to the Legislative Council in early 2023. This is to alleviate the impact of the ban on the transportation of alternative smoking products on the transportation industry. The proposal was confirmed by legislators during this Legislative Council session, which took place in early 2023.
Ms. Lin Yawen, Deputy Secretary-General of the Transport and Logistics Bureau, Ms. Zhu Ruiwen, Chief Assistant Secretary of the Transport and Logistics Bureau, Ms. Lin Ruiping, Assistant Director (Mainland) of the Industry and Trade Department, Ms. Ng Kit-ching, Deputy Commissioner (Control and Enforcement)/Assistant Commissioner (Boundary and Ports) of Hong Kong Customs, Ms. Lai Sau-ying, General Commander of Airport Security, Ms. Chan Cheng-sze, Executive Director of Business of the Hong Kong Airport Authority, Mr. Kwok Hung-ning, General Manager of Air Cargo and Logistics, and Mr. Liao Zhaohui, Head of the Mainland Division of the Marine Department/Shipping Policy, attended the meeting.
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2FIRSTS will continue to monitor and update the latest developments on the electronic cigarette transportation system in Hong Kong. Stay tuned for updates.
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