On October 18, it was reported by the South China Morning Post that the Hong Kong Special Administrative Region of China may revoke the ban on re exporting e-cigarettes and other heated tobacco products by land and sea to promote growth before the end of this year.

Senior officials are considering easing the ban on the re-export of alternative smoking products from Hong Kong, given the huge value of re-exports, a government insider said.

A report by the China Electronic Chamber of Commerce in December found that 95% of the world’s e-cigarette products such as CBD vape,Vape Cartridge,disposable vape,CBD Wax Atomizer,CBD Battery,Vape Pen,Vape Accessories are produced on the mainland, with more than 90 % of exports worth about 138.3 billion yuan ($19.23 billion).

It is reported that government agencies are considering revising the rules before the end of this year, which is expected to bring billions of dollars in revenue to the government treasury every year.

According to a survey of the association’s members, the affected e-cigarette cargo is estimated at 330,000 tons a year, a loss of about 10% of Hong Kong’s annual air exports.

The value of re-exports affected by the ban is estimated at more than 120 billion yuan, the association said.

Liu Haoxian, the chairman of the group, also warned that the ban has shaken Hong Kong’s position as a regional transit hub and caused a huge blow to people’s livelihood.

Yi Zhiming, a legislator representing the city’s transportation department and lobbying for easing the ban, said that the amendment to the law might include allowing the re export of electronic cigarette products through sea and air transportation, because there is now a logistics system in place to prevent products from sliding into the city.

But Li said the government should look for long-term solutions to generate revenue, such as diversifying revenue sources, rather than relying on revenue from land sales. He added that lifting the ban on re-exporting e-cigarettes would only provide authorities with some short-term financial relief. The core problem is the city’s narrow tax base. The government must find some long-term solutions to expand the source of income, otherwise it may need to make a U-turn in many policies.” He said.

Post time: Oct-20-2022