Joint Efforts to Combat Illegal Tobacco and E-cigarette Smuggling

Recently, during his visit to Canberra, Australia on June 17, Premier Li Keqiang of the State Council of the People's Republic of China held talks with Australian Prime Minister Albanese and they jointly held the annual meeting of Prime Ministers of China and Australia and met with reporters. During the annual meeting, the leaders of the two countries exchanged views on Sino-Australian relations and important international and regional issues.

In the subsequent release of the "Joint Communique of the Annual Meeting of the Chinese and Australian Prime Ministers," it was noted that compared to the communique of 2023, this year's annual meeting for the first time specifically mentioned in the joint communique to strengthen cooperation in combating illegal tobacco and e-cigarette smuggling on the basis of bilateral law enforcement cooperation in areas such as border law enforcement, drug control, and the fight against transnational organized crime, which are of common concern to both sides.

Previously, 2FIRSTS had analyzed that with the global development of e-cigarettes, international cooperation in e-cigarette regulation will become increasingly closer. The joint declaration released by China and Australia signifies that e-cigarette regulation cooperation has entered the international diplomatic high-level cooperation perspective.

2FIRSTS also analyzed the regulatory events related to e-cigarettes in Australia this year. The details are as follows:

January

It is officially prohibited to import all disposable e-cigarettes containing nicotine.

Starting from January 1, 2024, Australia officially prohibits the import of all disposable e-cigarettes containing nicotine. However, doctors and nurses still have the right to use e-cigarettes as a treatment method to help patients recover from nicotine addiction.

More than 80 million Australian dollars allocated for implementing e-cigarette ban.

In order to effectively enforce the ban, the government will allocate 25 million Australian dollars (approximately 16.85 million US dollars) to support the Australian Border Force, and will also prepare to allocate an additional 56.9 million Australian dollars (approximately 38.36 million US dollars) to the Therapeutic Goods Administration over the next two years to facilitate the implementation of the ban.

Law enforcement agencies have seized 13 tons, with an estimated value of approximately 4.5 million Australian dollars, of illegal e-cigarettes.

On January 30, Australian border patrol officers successfully seized a shipment of disposable e-cigarettes worth $4.5 million Australian dollars (3 million US dollars) and weighing 13 tons. This is the first large-scale confiscation of disposable e-cigarettes in the country since the ban on importing them went into effect on January 1.

Australian border patrol officials have stated that 14 air freight shipments arrived from the same destination and claimed to carry "inhalers," raising their suspicion.

Investigation reveals that the number of e-cigarette stores in low-income communities is seven times higher than in high-income communities.

On January 30th, researchers at the University of Notre Dame Australia found that e-cigarette shops are primarily located around schools and in socioeconomically disadvantaged neighborhoods. The number of e-cigarette shops in low-income communities is seven times higher than in high-income communities.

February

Victoria State Parliament: The black market for e-cigarettes in the state reaches a scale of 5 billion Australian dollars.

On February 3rd, a spokesperson for the City of Sydney government stated that businesses selling tobacco or e-cigarette products need to report to and apply for a retailer identification code from the New South Wales Health Department. Meanwhile, New South Wales Health Minister Ryan Park emphasized that the issue of e-cigarettes is a significant public health challenge.

The Victorian State Parliament Budget Office has released a report estimating that the illegal e-cigarette trade in the state could be worth up to 500 million Australian dollars, raising concerns that illegal e-cigarette trade could fuel black markets and organized crime.

The public is calling on the government to strengthen regulations and consider implementing bans.

On February 20, The Guardian reported that the Australian public is concerned about the illegal sale of e-cigarettes and supports stronger regulation and possible bans. Studies have found that Australians support control policies such as standardized packaging and health warnings.

March

All e-cigarettes must have a license.

Starting on March 1, 2024, all other e-cigarettes, including refillable products, will be banned from importation unless the importer holds a license from the Drug Control Office. These legally imported e-cigarettes can only be sold in pharmacies and can only be purchased by users with a prescription.

The personal import scheme for e-cigarettes will terminate on March 1, 2024, meaning all e-cigarette users will have to obtain their products from pharmacies in Australia. Retailers will still be able to sell their existing stock of "nicotine-free" e-cigarettes.

South Australia in Australia has prohibited the use of e-cigarettes in major public places.

On March 1st, South Australia implemented a comprehensive smoking ban, which also includes e-cigarettes, expanding the restricted areas and imposing strict penalties on violators. This initiative aims to protect community health and has launched advertising campaigns to raise awareness about the harmful effects of smoking.

New e-cigarette reform bill: offenders could face up to seven years in prison.

On March 21, the Australian Department of Health proposed the "2024 Therapeutic Goods and Other Legislation Amendment (e-cigarette reform) Bill". This bill aims to protect young people from the harms of e-cigarettes by prohibiting the manufacture, advertising, supply, and commercial possession of non-therapeutic disposable e-cigarettes. The bill will restrict the import, distribution, and supply of all e-cigarettes and will only be limited to established pharmaceutical supply chains.

This bill includes a framework for criminalizing and imposing civil fines on illegal activities related to the importation, manufacturing, supplying, advertising, and commerce of e-cigarettes. Convicted offenders will face harsher penalties, including a maximum of seven years imprisonment.

April

On April 19th, health ministers from across Australia collectively urged Parliament to pass legislation targeting e-cigarettes, in order to prevent young people from becoming addicted to nicotine and to reduce the profit sources of organized crime groups.

The Therapeutic Goods Administration (TGA) has seized 500,000 illegally imported e-cigarettes valued at over $15 million Australian dollars.

On April 23rd, the Australian Therapeutic Goods Administration (TGA) and the Victoria Police seized nearly 500,000 illegal e-cigarettes in a joint operation, valued at over 15 million Australian dollars.

May

Zhang Jianmin meets with Deputy Commissioner of the Australian Border Force, Fizgerald.

On May 6th, Zhang Jianmin, Secretary of the Party Group and Director of the State Tobacco Monopoly Administration, and General Manager of China Tobacco Corporation, met with Michael Fizzell, Deputy Commissioner of the Australian Border Force. On the same day, a study by the Australian Cancer Council showed that over 80% of young people aged 18 to 24 support or do not oppose the removal of e-cigarette products from retail stores.

The FDA announced on Thursday that Logic Technology's tobacco-flavored products may benefit adult smokers as an alternative to traditional cigarettes. The agency stated that if the company adheres to requirements to reduce young people's exposure and initiation of these products, the potential benefit outweighs the risk of young people starting to use them.