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.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

UK Councils Seize More Than 1.3 Million Non-Compliant Vapes One Year After Disposable Ban
UK Councils Seize More Than 1.3 Million Non-Compliant Vapes One Year After Disposable Ban
One year after the UK disposable vape ban came into force, local authorities continue to seize illegal and non-compliant vaping products. FOI data compiled by nicotine retailer Northerner shows more than 1.3 million products were seized between June 2025 and May 2026, with Bolton recording the highest number of seizures and Swansea reporting the highest estimated value.
Jul.21
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
Product | HQD SiSA 80K Enters the U.S. Market With a Hookah-Inspired Approach to the High-Capacity Disposable Segment
The HQD SiSA 80K Hookah Disposable Vape has appeared across U.S. and cross-border online retail channels. The device comes prefilled with 28ml of e-liquid, uses a 5% nicotine salt configuration and carries a brand claim of up to 80,000 puffs. Beyond puff count, the product differentiates itself through hookah-inspired features including adjustable airflow, a flowing-water sound effect and flavor options associated with traditional hookah consumption.
Aug.18
Russia Adds Vapes to “Strategic Goods” List, Illegal Cross-Border Trade Faces Up to Five Years in Prison
Russia Adds Vapes to “Strategic Goods” List, Illegal Cross-Border Trade Faces Up to Five Years in Prison
Russia will place e-cigarettes and related nicotine products under its “strategic goods” framework from August 20, 2026. According to TVP World’s report published on August 19, the newly listed items include e-cigarettes, electronic smoking devices, vape liquids and nicotine salts. Individuals who illegally move these products across Russia’s customs border or its state border with other Eurasian Economic Union (EAEU) members could face up to five years in prison if shipment values exceed 100,000 rubles (about €1,000), provided all elements of a criminal offence are established.
Aug.20
Scotland Plans to Remove Business Rates Relief From Vape Shops From 2027
Scotland Plans to Remove Business Rates Relief From Vape Shops From 2027
The Scottish Government plans to remove business rates relief from vape shops from April 1, 2027, saying the measure is intended to ensure vape retailers contribute to the high street and align rates relief with public health commitments, while the impact on convenience stores that sell vaping products remains unclear.
News
Jun.26 by 2Firsts Perspectives
FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
The U.S. Food and Drug Administration (FDA) has issued modified risk granted orders to Swedish Match USA for 20 ZYN nicotine pouch products, allowing the already-authorized products to be marketed with a specific claim that using ZYN instead of cigarettes lowers the risk of mouth cancer, heart disease, lung cancer, stroke, emphysema and chronic bronchitis.
Jul.01
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
AIR Invests $20 Million in Greentank, Deepening Capital Ties Across the Vape Supply Chain
Nasdaq-listed AIR Global has invested $20 million in preferred shares of Canadian vaporization technology company Greentank, deepening a partnership established in 2023. AIR gains a board nomination right, access to new technologies, enhanced commercial terms and long-term supply assurances, while retaining an option to increase its stake. Greentank’s Quantum Chip platform powers Crown Switch and forms part of AIR’s planned U.S. PMTA dossier, linking capital investment more closely with product technology, regulatory evidence and supply-chain control.
Special Report
Jul.29