E-cigarette Market: Paraguay's Role as a Transshipment Hub
In September 2023, China exported e-cigarettes to Paraguay with a total value of 9.24 million US dollars, corresponding to an export volume of 175 tons.
However, Paraguay has a population of only 6.78 million. In comparison to Belgium, with a population over 11 million, Paraguay's imports exceed approximately $1 million, while Belgium's imports amount to only $8.26 million.
It is worth noting that not all e-cigarettes exported to Belgium are sold in that market. Belgium serves as a key distribution hub for e-cigarettes in the European region, with imports of e-cigarettes covering important markets such as Germany and France. This suggests that Paraguay, with a smaller population but higher import value, may also serve as a transit point for e-cigarettes.
It is understood that Paraguay is one of the few countries in South America that does not have a ban on the sale of e-cigarettes, while neighboring Brazil is a large country with a population of 215 million and a booming e-cigarette market. However, due to restrictions on the sales of e-cigarettes, the country only imported e-cigarettes from China worth $4.21 million in September.
According to logistics providers, the Brazilian e-cigarette market is substantial but is hampered by sales restrictions, leading to cumbersome customs procedures. Typically, logistics providers tend to transport goods to neighboring country Paraguay before resorting to smuggling methods to enter the Brazilian market.
Meanwhile, reports in Paraguay and Brazil's media have highlighted cases involving the smuggling of e-cigarettes from Paraguay to Brazil.
Logistical firms reveal that in the South American market, e-cigarettes destined for Brazil are selectively routed through Paraguay.
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