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.

Global Tobacco Control Policy Debate: Medical Experts Call for Science-Based Approach, Promoting Harm Reduction Over Total Bans
Global Tobacco Control Policy Debate: Medical Experts Call for Science-Based Approach, Promoting Harm Reduction Over Total Bans
Health professionals worldwide are urging a shift from abstinence-only tobacco policies toward evidence-based harm reduction. Despite bans, smoking remains prevalent in countries like India, while prohibition fuels black markets in Europe and misinformation among doctors in the U.S. Many argue that regulated alternatives could save lives where cessation fails.
Sep.09
Philip Morris International launches IQOS ILUMA i "Leaf Green" Limited Edition in South Korea, with pre-sales starting September 4th
Philip Morris International launches IQOS ILUMA i "Leaf Green" Limited Edition in South Korea, with pre-sales starting September 4th
Philip Morris International Korea announced the launch of the limited edition "Leaf Green" color of IQOS ILUMA i and ILUMA i ONE, and will start pre-sales in IQOS direct stores and official malls nationwide from September 4, with prices of US$68 and US$45 respectively.
Sep.05 by 2FIRSTS.ai
Georgia Lawmakers Propose Tobacco Tax Hike and Flavored Vape Ban, Legislation May Reach Vote in 2026
Georgia Lawmakers Propose Tobacco Tax Hike and Flavored Vape Ban, Legislation May Reach Vote in 2026
A bipartisan panel in the Georgia House of Representatives is weighing new anti-tobacco measures, including a cigarette tax hike, flavored e-cigarette ban, and stricter licensing rules. Lawmakers say the bill could be introduced in 2026, though the plan faces resistance in an election year.
Sep.01 by 2FIRSTS.ai
Malaysian Health Minister: Vaping Ban to Be Submitted to Cabinet, Act 852 Cuts Product Variety by 60%
Malaysian Health Minister: Vaping Ban to Be Submitted to Cabinet, Act 852 Cuts Product Variety by 60%
Malaysian Health Ministry plans to propose banning e-cigarettes to Cabinet after significant decrease in smoking products post-law enforcement.
Aug.12 by 2FIRSTS.ai
2Firsts Interviews ASDF on Malaysia’s Vape Ad Ban, Total Prohibition Plans, and What’s Next
2Firsts Interviews ASDF on Malaysia’s Vape Ad Ban, Total Prohibition Plans, and What’s Next
Malaysia’s Vape Market in Turmoil.Since the implementation of Act 852, Malaysia’s e-cigarette sector has been undergoing intense upheaval. From stricter compliance inspections and a full advertising ban to a proposal for a complete sales prohibition, a regulatory storm is reshaping the industry landscape.2Firsts talks with leading local brand ASDF to learn how it is responding to challenges and laying out a compliance roadmap in the current policy environment.
Aug.14
Product | GEEKBAR Launches First DTL Model in the U.S. with 5% Nicotine
Product | GEEKBAR Launches First DTL Model in the U.S. with 5% Nicotine
E-cigarette brand Geek Bar has recently introduced its first disposable vape with direct-to-lung (DTL) functionality to the U.S. market via distributor websites—the GEEKBAR Pulse X DTL 25K and GEEKBAR Pulse X DTL 42K. Both new models feature MTL/DTL mode switching and are differentiated by capacity, nicotine strength, and price positioning.
Aug.15 by 2FIRSTS.ai