South Korea Cracks Down on E-liquid Tax Evaders
According to The Korea Bizwire, South Korea plans to crack down on traders trying to avoid e-liquid taxes by falsely claiming their products contain synthetic nicotine rather than tobacco-derived nicotine. On November 10, the Korea Customs Service announc
According to The Korea Bizwire, South Korea plans to crack down on traders attempting to evade electronic liquid taxes by falsely claiming their products contain synthetic nicotine instead of tobacco-derived nicotine.
On November 10, the Korea Customs Service announced that it has developed a highly accurate method to identify whether the nicotine in e-liquids is extracted from tobacco leaves or manufactured in a laboratory.
This method uses derivatization technology to increase detection sensitivity by 30 times.
Under tax law, e-liquids containing natural nicotine are classified as cigarettes and are subject to an inland tax of 1,799 KRW (1.32 USD) per milliliter.
In contrast, e-cigarettes containing synthetic nicotine are classified as manufactured goods and are exempt from cigarette excise tax.
