South Korean Customs Cracks Down on Tax-Evading E-Cigarette Sellers

Nov.16.2022
South Korean Customs Cracks Down on Tax-Evading E-Cigarette Sellers
South Korean customs cracks down on illegal e-cigarette sellers trying to avoid import taxes by falsely labeling natural nicotine as synthetic.

A photo of an electronic cigarette store in Seoul sourced from Korea Bizwire.


A report in the Korean Business News has revealed that sellers attempting to evade taxes by passing off naturally extracted nicotine from tobacco as synthetic nicotine have been targeted by officials from the South Korean Customs Department.


The South Korean customs agency has announced a plan to increase its crackdown on sellers who falsely report natural nicotine as synthetic nicotine in e-cigarette liquids in order to avoid paying import taxes on such products.


The General Administration of Customs announced on Thursday that they have developed a high-precision analytical method to determine whether the nicotine in e-cigarette oils is extracted from tobacco leaves or synthetic.


This technique utilizes a sample preparation method called "derivation" to increase the detection sensitivity of specific components in tobacco by 30 times.


According to tax laws, electronic cigarette liquid made from natural nicotine is classified as cigarettes and is subject to an inland tariff of 1,799 Korean won (approximately $1.32 USD) per 1 milliliter.


In contrast, electronic cigarettes made from chemical materials synthetically produced nicotine are not classified as cigarettes but as manufactured products, and therefore exempt from cigarette consumption tax.


In certain instances, to avoid taxes, importers falsely declare natural nicotine in e-cigarette fluid as synthetic nicotine.


Statement:


This article is compiled from third-party information and is intended for industry communication and learning purposes.


This article does not represent the views of 2FIRSTS and 2FIRSTS cannot confirm the authenticity and accuracy of the article's content. The translation of this article is only for industry exchange and research purposes.


Due to limitations in the translation process, the translated article may not fully reflect the original text. Please refer to the original article for accuracy.


2FIRSTS maintains complete alignment with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign-related statements and positions.


All compiled information is the property of the original media and author. If there is any infringement, please contact us for deletion.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

Philip Morris International to Boost Investment in the Philippines, Aiming to Make It a Smoke-Free Products Export Hub
Philip Morris International to Boost Investment in the Philippines, Aiming to Make It a Smoke-Free Products Export Hub
PMI to make the Philippines a smoke-free export hub, citing strong regulation; upgrading local plants, expanding affordable supply; $14bn invested globally.
Oct.11 by 2FIRSTS.ai
Thai police seize over 50,000 illegal e-cigarettes worth more than 10 million baht, main suspect arrested in Bangkok
Thai police seize over 50,000 illegal e-cigarettes worth more than 10 million baht, main suspect arrested in Bangkok
Thai police cracked an illegal e-cigarette smuggling case, seized 50,000 items worth more than 10 million baht (over 310,000 US dollars), arrested several suspects, and cracked down on a cross-border smuggling network.
Sep.23 by 2FIRSTS.ai
Research Brief | Altria Study Finds Limited Impact of Massachusetts Flavor Ban on Adult Smoking Rates
Research Brief | Altria Study Finds Limited Impact of Massachusetts Flavor Ban on Adult Smoking Rates
A replication study by Altria scientists published in AJPM Focus evaluated the effect of Massachusetts’ comprehensive flavored‐tobacco ban,the study found that while Massachusetts’ smoking rate continued to decline after the ban, it did not fall faster than in comparison states without flavor bans. Overall, Massachusetts fell from about 14.1% to 10.7%, while comparison states fell from 18.5% to 14.8%. The authors conclude that, for adult smoking prevalence, no additional net decline attributable
Sep.24 by 2FIRSTS.ai
Special Report | Anti-Vaping Campaign in the Baltics Goes Sideways
Special Report | Anti-Vaping Campaign in the Baltics Goes Sideways
2Firsts analyzes vaping regulations across the Baltic states. Following Latvia’s flavor ban, tax revenues fell and the black market expanded, while similar measures in Estonia and Lithuania have also failed to deliver results. The region’s anti-vaping policies are now triggering market imbalance and policy reassessment.
Oct.13
Philip Morris Korea Extends IQOS ILUMA i Warranty to 18 Months, Says Move Will Boost Smoke-Free Product Growth
Philip Morris Korea Extends IQOS ILUMA i Warranty to 18 Months, Says Move Will Boost Smoke-Free Product Growth
Philip Morris International’s Korea unit has extended the warranty for the “IQOS ILUMA i” heated tobacco series from 12 to 18 months, applying it retroactively to existing purchases, aiming to enhance user experience and market competitiveness.
Oct.15 by 2FIRSTS.ai
Company | British American Tobacco launches "Vapers Deserve Better" campaign in the UK, calling for mandatory testing and retail licensing
Company | British American Tobacco launches "Vapers Deserve Better" campaign in the UK, calling for mandatory testing and retail licensing
British American Tobacco UK (BAT UK) announced the launch of its "Vapers Deserve Better" campaign this week, emphasizing the need for a responsible regulatory framework to combat non-compliant operators who ignore regulations and quality standards. The campaign advocates for mandatory pre-market testing, a national retail licensing system, and stricter penalties for offenders.
Sep.29 by 2FIRSTS.ai