Implementation of 'Honest Label' Policy in Russian E-cigarette Market

Regulations by 2FIRSTS.ai
Nov.21.2023
Implementation of 'Honest Label' Policy in Russian E-cigarette Market
Russia has implemented a "honest labeling" policy for e-cigarette imports, requiring retail information to be uploaded.

Starting from April 1st, Russia has implemented the "Honest Label" policy to regulate the e-cigarette market. The policy requires wholesale importers of e-cigarettes to upload retail information of the relevant products to the Honest Label system. E-cigarette products that do not have the label will not be able to smoothly pass through Russian customs.

 

2FIRSTS contacted Wang Juncheng, general manager of Russia Sooching, a local customs clearance company in Russia, on November 20th to gain insights into the latest developments in the Russian e-cigarette market, as more than six months have passed since the implementation of the "Honest Label" system.

 

Wang Juncheng stated that there is currently a high demand in the Russian market for compliant products, and due to policy reasons, there are very few options for accessing the market through unofficial channels. Furthermore, since August, the transportation time for some unofficially imported goods has also increased from the previous 30 days to 2 to 3 months.

 

In the past two months, there has been a significant increase in the transportation volume of Russian compliant logistics companies. According to Wang Juncheng, the customs clearance tickets for RussianSoocleaning have also increased by three to four times compared to before. Furthermore, the logistics costs for compliant e-cigarettes have also been on the rise, currently increasing from over 30 RMB per kilogram to over 40 RMB.

 

He pointed out that the main reason for the increase in the volume of compliant logistics shipments is the sharp rise in demand from e-cigarette terminal shops and distribution stores. In the Russian e-cigarette market, most terminal stores, chain supermarkets, and distributors only accept compliant products. Although some stores may sell both compliant and non-compliant products, the shelf rate of compliant products is gradually increasing, with a minimum proportion of 50%.

 

Wang Juncheng points out that due to their higher value and taxes, it is difficult to transport compliant products on a large scale like gray market products. They can only be transported in small batches. In addition, the procedures for applying for an honest label for compliant products are relatively complicated, and ensuring compliance channels for logistics, distribution, and stores also takes a considerable amount of time. Therefore, he suggests that if companies wish to list compliant products on the Russian market, they need to make thorough preparations at least 3 months in advance.

 

Furthermore, Wang Juncheng revealed that, as far as he knows, Russia is set to increase e-liquid taxes in early 2024. This will result in a doubling of the cost of e-cigarette products.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

UK PM Andy Burnham Reshapes Vape Retail Rules as Licensing Could Raise Barriers for New Shops
UK PM Andy Burnham Reshapes Vape Retail Rules as Licensing Could Raise Barriers for New Shops
UK Prime Minister Andy Burnham is pushing a high street reform agenda that could give local authorities greater powers over commercial activity, including vape retail. The reforms could involve expanded planning powers and a potential vape retail licensing system, allowing councils to play a larger role in store locations and market access. The measures are part of the UK’s broader shift toward tighter vape regulation, although no nationwide vape retail restrictions have yet been implemented.
Aug.11
Australia’s One Nation Proposes 75% Tobacco Tax Cut, Says Lower Prices Could Hit Illicit Market
Australia’s One Nation Proposes 75% Tobacco Tax Cut, Says Lower Prices Could Hit Illicit Market
Australia’s One Nation party has proposed cutting tobacco excise by 75%, arguing that lower legal cigarette prices could narrow the gap with illicit tobacco and reduce demand for black-market products. The proposal comes as Australia continues expanding enforcement against illicit tobacco supply chains through border controls, retail inspections and organised-crime investigations. Supporters argue high taxes have contributed to illicit-market growth, while opponents warn that lower tobacco prices could undermine public-health goals. The proposal is a party policy position and has not been adopted by the Australian government.
Aug.18
Ohio Supreme Court Weighs Whether State Consumer Law Can Restrict Flavored Vape Sales
Ohio Supreme Court Weighs Whether State Consumer Law Can Restrict Flavored Vape Sales
The Ohio Supreme Court is hearing a case involving flavored vape sales and whether state authorities can use consumer protection laws to take action against retailers selling unauthorized vape products. Ohio officials argue that selling unauthorized flavored vapes may constitute consumer deception, while retailers argue that tobacco product regulation falls under federal Food and Drug Administration (FDA) authority and that states cannot impose additional restrictions through consumer laws. The case could affect the scope of state-level vape regulation across the United States.
Aug.06
India Steps Up Nicotine Pouch Enforcement as ZYN, White Fox Circulate and Drug Panel Urges Halt to New Nicotine Formulations
India Steps Up Nicotine Pouch Enforcement as ZYN, White Fox Circulate and Drug Panel Urges Halt to New Nicotine Formulations
India's Ministry of Health and Family Welfare has directed states to step up enforcement against nicotine pouch sales, citing increased availability through online and offline channels and concern about nicotine exposure among children. Reuters reported that international brands including ZYN and White Fox are being sold in India. A study led by ICMR-NICPR found pouches in seven of 10 surveyed locations and identified 68 brands and 445 flavors online. Separately, India's Drugs Technical Advisory Board recommended in August that no new nicotine formulation be approved.
Regulations
Sep.28 by 2Firsts Perspectives
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia Tobacco Tax Debate Spreads Within Labor as NSW Premier Minns Reaffirms Support for a Cut
Australia’s tobacco excise debate is increasingly exposing differences within the governing Labor Party. New South Wales Labor Premier Chris Minns reaffirmed on September 8 that he supports reducing tobacco excise, arguing that current tax settings are pushing consumers toward cheaper black-market cigarettes. Federal Health Minister Mark Butler continues to oppose an excise cut, while Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino have recently stopped short of ruling out future changes. The divergence follows the opposition Coalition’s proposal to cut tobacco excise by 80%.
Sep.08
Australia Brings in Deloitte to Support Illicit Tobacco and Vape Enforcement Across Data, Processes and Project Delivery
Australia Brings in Deloitte to Support Illicit Tobacco and Vape Enforcement Across Data, Processes and Project Delivery
Australia’s Department of Home Affairs has hired Deloitte to provide data analytics, business-process, communications and project-delivery support to the Office of the Illicit Tobacco and E-Cigarette Commissioner. The government says Deloitte personnel do not provide policy advice to the Commissioner or the Australian government, with policy development and decision-making remaining with public officials. The arrangement has nevertheless drawn scrutiny because Deloitte has previously provided professional services to several tobacco and vaping companies.
Sep.03