Malaysia Reaches Agreement to Allow E-Cigarettes, Despite Smuggling Concerns

On April 28, Malaysian media reported that an "agreement" had been reached between Malaysian authorities and customs officials to allow electronic cigarette products to enter the country through sea and air routes. In response, the Malaysian Customs Department stated they will crackdown on tobacco smuggling and anyone involved in such activities will face severe legal consequences.

Reached an agreement with customs

Malaysian media outlet "Sinar Harian" has received information from an anonymous source claiming that Malaysia's Customs Department has reached an agreement with an electronic cigarette group to prevent the inflow of illegal e-cigarette liquid into the country from abroad.

These goods will be shipped in bulk to Malaysia via sea and air transportation.

The source also revealed that they will register the products as wooden materials or food flavorings, and will not label them as containing nicotine.

The gray market operators are demanding that customs officials refrain from inspecting goods that have already reached a "agreement", otherwise they will bribe law enforcement officers.

According to sources, the government suffered a loss of approximately 900 million Malaysian ringgit (equivalent to approximately 1.4 billion Chinese yuan) last year due to the smuggling of electronic cigarettes or the sale of illegal electronic cigarette flavors.

If this type of illegal activity continues to thrive without supervision, it is expected to result in a loss of 2 billion Malaysian ringgit (approximately 310 million Chinese yuan) this year.

He added that there had been controversies in the inspection process regarding nicotine e-liquids, but they were declared as edible flavorings, resulting in the products escaping confiscation.

These grey operators know how to exploit loopholes in the rules to achieve their goals, as verification of products containing nicotine can only be performed in laboratories with adequate equipment. Customs officials are unable to immediately verify the category of the product, which gives grey operators an opportunity to take advantage.

There will be no compromise on the actions of smugglers.

Sazali Mohamad, Deputy Director-General (Enforcement and Compliance) of the Malaysian Customs, stated that there will be no compromise for anyone caught smuggling electronic cigarette products or any illegal items, even if the perpetrators are customs officers.

An investigation will be carried out from various angles to determine the mastermind and individuals involved.

He stated that customs will establish operational methods regarding all parties involved in order to weed out corrupt elements within customs.

Further Reading:

The Malaysian Tobacco Control Committee has urged the government to combat the issue of nicotine addiction.

The Malaysian electronic cigarette regulation bill will be submitted to parliament in May.

Regulation of e-cigarettes in Malaysia may increase market share for Vuse.

Malaysia imposes a 0.4 ringgit per milliliter consumption tax on e-liquids, and manufacturers are required to register by April 30th.

The Malaysian Electronic Cigarette Retail Association has approved the removal of nicotine regulations and stated that further research is needed on the Generation End proposal.

Reference:

A senior official from the Customs department has promised to take tough action against those involved in vape cartels, even if it means taking action against their own staff members amidst rumors of cartels.

Kartel Vape allegedly bribed authorities.