Legal Analysis: Chinese Freight Forwarder Under Investigation by Australia's TGA, Exporters Face Dual Risks at Home and Abroad

Industry Insight by 2FIRSTS
Sep.04.2024
Legal Analysis: Chinese Freight Forwarder Under Investigation by Australia's TGA, Exporters Face Dual Risks at Home and Abroad
Australian authorities investigate Chinese freight company Huawell for potentially illegal e-cigarette transportation, violating local regulations.

Recently, 2Firsts observed that the Australian Therapeutic Goods Administration (TGA) is investigating the Chinese freight forwarding company Huawell Trade Export Shipping. The company is being investigated for promoting and transporting e-cigarettes to Australia via social media, potentially violating local regulations.

 

In the development of the e-cigarette industry, e-cigarette logistics service providers are not only a key link connecting production with global consumers, but also play an important role in ensuring product compliance. It is worth noting that the State Tobacco Monopoly Administration issued a notice on August 11 regarding the revision and issuance of regulations on e-cigarette logistics management. Article 16 specifically states that e-cigarette logistics service providers are not allowed to provide services intended to bypass domestic and foreign regulatory systems. This regulation emphasizes that e-cigarette companies must comply with the laws and regulations of their target markets when engaging in international trade to avoid legal risks and economic losses.

 

In this context, 2Firsts communicated with Tang Shunliang, a partner at Tianyuan Law Firm with many years of experience in the tobacco industry, regarding industry compliance and legal risk issues.

 

According to reports, current laws in Australia mandate that e-cigarette importers must notify the Therapeutic Goods Administration (TGA) whether their products meet standards.

 

In response, lawyer Tang mentioned that the investigation by the TGA into Huawell company is still ongoing. This regulatory model is worth paying attention to as it poses a dual risk for Chinese e-cigarette exporters, involving both domestic and international regulations. If an e-cigarette exported to the target market is found to be in clear violation and reported by the local government, there is a high risk of being investigated domestically.

 

Furthermore, violating regulations could result in products being seized and destroyed by local governments, causing significant losses for exporters. For example, the Philippine Bureau of Internal Revenue recently mandated that illicit tobacco and e-cigarette products must be destroyed within 20 days (Philippine Bureau of Internal Revenue new rule: e-cigarettes and other seized items must be destroyed within 20 days, non-essential items will be publicly auctioned). Such regulations could prevent exporters from recovering their payments.

 

Against the backdrop of strict regulations on e-cigarettes, Australia's illegal tobacco market continues to thrive. Investigation by 2Firsts has revealed glimpses of this illicit market on social media platforms such as Facebook. In addition to the freight company Huawell illegally promoting the transportation of e-cigarettes, there are also e-cigarette dealers claiming on their social media accounts to be able to bypass Australia's customs inspections (E-cigarette dealer boasts of illegal customs evasion, posing a challenge to Australia's border control).

 

In response, Counsellor Tang believes that facing the complex and rapidly changing international market, "compliance" is the key word, and e-cigarette exporters should fully prepare for compliance. With the recent revisions to e-cigarette trading and logistics rules becoming increasingly clear, exporters need to keep up with the updates to e-cigarette trading and logistics rules and thoroughly understand the compliance requirements of various countries. Only when both exporters and buyers have a compliance mindset can export risks be minimized.

 

Previously, 2Firsts attempted to contact Huawell Trade Export Shipping Company for further information, but they refused to communicate. In addition, 2Firsts reached out to the TGA, but had not received a response as of the publication date. As the investigation progresses, more details may become clearer, and 2Firsts will continue to monitor developments in this case.

 

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

 Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh Approves Amended Tobacco Control Law Expanding Ad Bans and Smoke-Free Areas
Bangladesh’s new government has approved a broad tobacco control amendment that bans tobacco advertising, promotion and display across print, electronic, digital and social media, entertainment platforms and points of sale. The law does not cover newer products such as vapes, heated tobacco products, electronic nicotine delivery systems or nicotine pouches.
Apr.22 by 2FIRSTS.ai
 China’s E-Cigarette Exports Reached About USD 903 Million in March 2026, Up 4.4% Year on Year
China’s E-Cigarette Exports Reached About USD 903 Million in March 2026, Up 4.4% Year on Year
According to the latest country-level data released by China’s General Administration of Customs, China’s e-cigarette-related exports totaled about USD 903 million in March 2026, up about 4.4% from roughly USD 865 million a year earlier. The United States, the United Kingdom and Germany remained the top three destinations, while the top 10 markets together accounted for about 72.2% of total exports.
Apr.21 by 2FIRSTS.ai
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA CTP issued a May 7 statement on accelerating product review and improving PMTA efficiency, but did not push it via official X and newsletter until May 13, one day after FDA Commissioner Marty Makary’s resignation was confirmed. FDA has not explained the delay, and no public evidence links it directly to the leadership change. The timing is notable given CTP’s usual 24-hour distribution practice.
Special Report
May.14
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
KT&G disclosed in a regulatory filing on Friday that Capital Research and Management Company, the investment management arm of Capital Group, had acquired a 5.61% stake through purchases made on April 22 and May 4. The move places Capital Group among KT&G’s prominent foreign shareholders, alongside BlackRock, First Eagle Investment Management and Singapore’s sovereign wealth fund GIC.
May.08 by 2FIRSTS.ai
Disposable Vape Ban Shifts Purchasing Formats as UK Vape Volume Falls 10.3%
Disposable Vape Ban Shifts Purchasing Formats as UK Vape Volume Falls 10.3%
Data from convenience insight agency Talysis shows that the value of tobacco, vapes and smoking alternatives in the independent convenience sector fell by 4.4% in the first quarter of 2026, while volume fell by 7.8%. The vaping subcategory declined by 3.9% in value and 10.3% in volume over the same period. Talysis said the impact of the disposable vape ban continues to pressure turnover and footfall.
May.08 by 2FIRSTS.ai
PML Expands Its UK Smoke-Free Portfolio With LEVIA
PML Expands Its UK Smoke-Free Portfolio With LEVIA
Philip Morris Limited has launched LEVIA, a new range of zero-tobacco flavored nicotine sticks created for the IQOS ILUMA range. The product expands the company’s smoke-free portfolio in the UK and will initially be available in four variants, including Deep Mint and three capsule-based flavors. LEVIA has a recommended retail price of £5, or about $6.73, based on the European Central Bank’s April 28.
Apr.29 by 2FIRSTS.ai