Hong Kong Lifts Ban on Sea-Air-Land Intermodal Transit for E-cigarettes and Other New Tobacco Produc

According to the Hong Kong Economic Journal, on June 21, the Legislative Council of the Hong Kong Special Administrative Region passed the "2023 Import and Export (Amendment) Bill" with 72 votes in favor, 1 against, and 3 abstentions, allowing alternative smoking products (i.e., new tobacco products, including vaping) to be exempted from the ban on transit through Hong Kong by sea and air.

Hong Kong will resume the transit of vaping products from the mainland to overseas markets via sea and air. Regarding the official implementation date, the Legislative Council stated that the "2023 Import and Export (Amendment) Bill" will take effect from the date of its publication in the Gazette as an ordinance and will be managed, supervised, and enforced by the Hong Kong Customs.

Some contents of the "2023 Import and Export (Amendment) Bill"

Source: Hong Kong Special Administrative Region Legislative Council website

Public reports indicate that the "2021 Smoking (Public Health) (Amendment) Ordinance" came into full effect on April 30, 2022, prohibiting the import of vaping products from the mainland to Hong Kong and then exporting them by air.

Since then, a large demand for vaping exports has shifted to other airports, including those in Guangzhou, Shanghai, Wuhan, and Beijing, in addition to Shenzhen Airport. Among them, Guangzhou and South Korean airports have seen significant growth due to advantages in routes and costs.

Since the ban on alternative smoking products being transited through Hong Kong took effect on April 30, 2022, the air cargo volume in Hong Kong has significantly decreased. From May to December 2022, the average air cargo volume at Hong Kong International Airport dropped by 20% compared to the same period in 2021, which includes alternative smoking products and other types of goods lost due to the impact of "consolidated cargo" operations.

Quickly, discussions about whether to lift the ban on vaping transit were brought to the agenda. On the morning of November 28, 2022, the Economic Affairs Committee of the Legislative Council of the Hong Kong Special Administrative Region discussed the regulation of vaping transit. At that time, the Hong Kong Transport and Logistics Bureau planned to submit a proposal to the Legislative Council in early 2023 to relax the regulations on vaping transit.

Legislative Council member Yip Chi Ming pointed out that losing the alternative smoking transit business from the mainland and the cargo operations of consolidated cargo has significantly reduced Hong Kong's export volume, which will affect the local economy in the long run.

Hong Kong's Secretary for Transport and Logistics, Lam Sai Hung, noted that the significant drop in Hong Kong's cargo volume is not only due to global economic factors and the pandemic but also because of the ban on alternative smoking products transit, which is another major factor. The mainland is a major producer of alternative smoking products globally, and Hong Kong is one of the most important transit hubs. Most alternative smoking products from the mainland were previously transited through Hong Kong to overseas markets. To maintain the competitiveness of Hong Kong Airport and solidify Hong Kong's position as an international shipping hub under the national 14th Five-Year Plan, it is necessary to amend the regulations.

Lam Sai Hung pointed out that the ban on alternative smoking products transit is one of the main factors leading to the decline in Hong Kong's cargo volume.

Image source: Hong Kong Economic Journal