Positive News for Overseas E-Cigarette Trade: Hong Kong Officially Announces Regulatory Plan for Tra

On June 21, the Legislative Council of China Hong Kong passed the "Import and Export (Amendment) Bill 2023" on the third reading, which will transfer alternative smoking products (including atomization) that are transshipped through Hong Kong through air, sea and land transportatione-cigarettes, heating the smoke,smoke oil, herbal cigarettes, etc.) are included in the scope of exemption.

On June 30, the Hong Kong Customs and Excise Department announced the "Supervision Plan for the Transhipment of Alternative Smoking Products" on its official website, detailing the intermodal transhipment plan.

The following is the full text: (This article has a large number of words, so it is recommended to forward it for collection and then read it)

Alternative smoking product diversion supervision plan

1. Introduction

According to the Import and Export Ordinance (Cap. 60), anyone who imports alternative smoking products commits an offence and is liable on summary conviction to a maximum fine of $500,000 and imprisonment for two years; on conviction on indictment, to a maximum fine of $2,000,000 and imprisonment for seven years.

The Import and Export Ordinance stipulates that if alternative smoking products are in transit, air transhipment cargo, or specified intermodal transhipment cargo imported by registered operators, they may be exempted from the import ban.

According to the Import and Export Ordinance, the Hong Kong Customs and Excise Department (hereinafter referred to as the "Customs and Excise Department") is responsible for regulating the registration and supervision system of the "Alternative Smoking Products Transhipment Supervision Scheme"(hereinafter referred to as the "Scheme") to handle exemptions from specified intermodal transhipment of alternative smoking products. The Customs and Excise Department will shoulder the investigation and prosecution of illegal imports of alternative smoking products.

Practical Guidelines on the Supervision Plan for the Transhipment of Alternative Smoking Products (please download relevant information at the end of the text)

This guideline is formulated in accordance with Section 13H of the Import and Export Ordinance and sets out:

a. Registration requirements and procedures; and

b. The security and procedural requirements required by registered operators when engaging in specified intermodal transhipment of alternative smoking products.

Relevant paper documents can also be obtained at the following locations:

63 Container Port South Road, Kwai Chung, New Territories, Hong Kong

9/F, Kwai Chung Customs Building

Hong Kong Customs Land Border Control Branch

Registration and Vehicle Inspection Team

2. Definitions of alternative smoking products and specified intermodal alternative smoking products

Section 2(1) of the Smoking (Public Health) Ordinance, Cap. 371 of the Laws of Hong Kong explains the definition of alternative smoking products. In short, alternative smoking products are:

a. Apparatus, or parts and accessories thereof, capable of producing an aerosol from any substance (other than dangerous drugs) without ignition and used to imitate traditional smoking, but excluding water cans;

b. Any substance (other than dangerous drugs) used in the apparatus described in (a) above to generate aerosol, such as heated cigarettes, e-cigarette fluid; or

c. Plant materials (except tobacco and dangerous drugs) that are wrapped in any material and can be used in real time to mimic traditional smoking, i.e. herbal tobacco.

The Import and Export Ordinance stipulates that alternative smoking products as "specified intermodal transhipment cargo" can be exempted from the import ban. According to section 13A of the Import and Export Ordinance, specified intermodal transhipment cargo refers to articles that comply with the following descriptions:

a. Imported by vehicle or vessel; and

b. Consigned from one place outside Hong Kong to another place outside Hong Kong on a full bill of lading; and shipped on an aircraft departing from Hong Kong International Airport for export.

Section 13I of the Import and Export Ordinance empowers the Commissioner of Customs and Excise (hereinafter referred to as the "Commissioner") to, after consultation with the Airport Authority (hereinafter referred to as the "AA"), publish a notice in the Gazette to specify an area for handling specified intermodal transhipment cargoes. The specified areas include the West Coast Terminal at the Hong Kong International Airport and some cargo processing areas located at Super One Cargo Terminal, Cathay Pacific Cargo Terminal, Asia Air Transport Centre and Express Centre.

3. Registration

Who needs to register

Anyone who wishes to obtain an exemption from the specified intermodal transhipment of alternative smoking products must apply to the Commissioner in advance to become a registered operator.

application

Anyone who wishes to register for the scheme should submit the completed form together with the authorization form (if applicable) and a photocopy of the required documents to the Commissioner through the following channels:

a. Online application (land and land transshipment); or

b. Mail/in person:

63 Container Port South Road, Kwai Chung, New Territories, Hong Kong

9/F, Kwai Chung Customs Building

Hong Kong Customs Land Border Control Branch

Registration and Vehicle Inspection Team

For details on the registration process, please refer to the Practice Guide.

Processing registration applications

After receiving the registration application, the Customs will issue a confirmation letter with the application number to the applicant. If necessary, the Customs may issue a reminder letter requesting the applicant to provide supplementary information or supporting documents. If the applicant fails to reply or provide the required supplementary information or supporting documents within 30 days from the date of the reminder letter, the relevant application will be deemed invalid and rejected. The Customs will issue a written notice in this regard to inform the applicant of the rejection of his application and the reasons for it.# p#pagination title #e#

Install security devices

After receiving the completed registration form and all information and supporting documents required by the Customs, the Customs will issue a "Notice of Installation of Security Devices" to the applicant within 7 working days. Applicants can then arrange for the purchase and installation of security devices on the relevant vehicle/vessel in accordance with the standards stipulated by customs:

Applicable to business vehicles

a. Electronic locks and global positioning system equipment provided by customs recognized suppliers;

b. A closed-circuit television system with video recording function [a lighting system should be installed inside the container and at least two closed-circuit television cameras should be installed to clearly record all goods in the container; two closed-circuit television cameras should be installed outside the container to clearly see the container door, electronic lock and license plate for real-time monitoring by customs]; and

c. Container door latch seals [Containers for business vehicles should be of closed design, with the only entrance at the end and container door latch seals installed to ensure that the container door cannot be opened without damaging the electronic lock and container door latch seals.]

Applicable to business vessels

a. Customs approved Global Positioning System equipment; and

b. CCTV system [At least two CCTV cameras shall be installed in the cabin, and all alternative smoking products contained in the cabin must be within the recording range of the CCTV cameras].

Conduct vehicle/vessel inspections, trials and briefing sessions

After completing the installation of the security device, the applicant must notify the Customs in writing to arrange for vehicle/vessel inspections. If necessary, a trial will be carried out to test the functions of the installed security device.

Applicants are also required to attend a briefing organized by the Customs and Excise Department to familiarize themselves with the security and procedural requirements of the scheme.

Approval/refusal of application

After reviewing the application, the Commissioner of Customs will notify the applicant of the result in writing as soon as possible:

a. The approval of his application, the effective date of registration, the registration number of the Alternative Smoking Products Transhipment Regulation Scheme, and information on the registered business vehicle/vessel and driver/crew; or

b. The application was rejected and the reasons for the rejection.

appeal

The applicant may appeal against the Commissioner's decision by written notice to the Chief Secretary for Administration within 14 days from the date when he is notified of the decision or from the date on which he becomes aware of the decision, whichever is the later.

Registration fee

Although the Customs and Excise Department will not charge the applicant any fees, the cost of installing the required security devices must be borne by the applicant. Applicants should note that customs recognized security device suppliers may charge a service fee for the use of security devices.

4. Post-registration matters

Deregistration/Change of Information

If a registered operator wishes to cancel its registration, it shall submit a written application to the Commissioner of Customs. The Commissioner will process the application and issue a confirmation letter specifying the date of termination of registration.

If there is any change in the information of the registered operator *, the information change form should be filled out and all relevant supporting documents should be submitted to the customs within 30 days together with relevant supporting documents. Late submission of the Change of Information Form may result in the suspension or cancellation of the registration.

* Changes to registration data include business information of the registered operator, authorizers, vehicle/vessel to be used and driver/crew to be deployed.

Repair, replacement and reinstallation of security devices

It is the responsibility of the registered operator to ensure that the security devices are in good condition and operating properly. If a security device fails, the registered operator should immediately report it to the Customs and Excise Department and properly repair it before the next specified intermodal transhipment of alternative smoking products. If any security device is to be repaired, replaced or reinstalled (as the case may be), the registered operator should notify Customs and make an appointment with Customs to conduct vehicle/vessel inspections.

regular review

The Customs will conduct regular inspections on registered operators every two years to ensure that they meet the standards stipulated by the Customs and that the required security devices installed are operating normally. Registered operators are required to provide information required by Customs for verification and/or arrange for inspection of business vehicles/vessels at locations designated by Customs. If non-compliance is discovered during the inspection/inspection period, the Customs may temporarily revoke or cancel the registration as appropriate.

Cancellation/suspension of registration

If a registered operator violates the Import and Export Ordinance and/or the Practical Guidelines, or the Commissioner is satisfied that the operator is no longer suitable to serve as a registered operator, the Commissioner may issue a written notice to the registered operator:

a. Cancel the registration from the specified date and explain the reasons for the cancellation; or

b. Temporarily revoke the relevant registration and explain the reasons for the suspension--

i. The specified period for cancellation of registration; or

ii. Until the Commissioner is satisfied that the terms or conditions imposed have been complied with.# p#pagination title #e#

A registered operator whose registration has been suspended will not be eligible for exemption from specified intermodal transhipment of alternative smoking products under the scheme until the suspension period expires or complies with the terms/conditions specified in the written notice.

appeal

The applicant may appeal against the Commissioner's decision by written notice to the Chief Secretary for Administration within 14 days from the date when he is notified of the decision or from the date on which he becomes aware of the decision, whichever is the later.

5. Specify security and procedural guidelines for intermodal transportation of alternative smoking products

Under the Import and Export Ordinance, the Commissioner is empowered to issue practical guidelines setting out the requirements that a registered operator's business vehicle or business vessel must comply with and the methods in which alternative smoking products to be imported must be transported, stored and otherwise handled before they are transferred to aircraft exports. The Commissioner may amend or revoke any practical guidelines.

To be eligible for the exemption from the specified intermodal transhipment of alternative smoking products, registered operators must comply with the security and procedural guidelines set out in the following paragraphs when transiting alternative smoking products through Hong Kong.

forecast cargo data

For each alternative smoking product transhipped under the plan, registered operators must ensure that forecast cargo information and related documents/information are submitted to the Customs by downloading:

a. For land and land transportation of alternative smoking products:

At least 2 hours before registered business vehicles enter Hong Kong,

i. Submit relevant cargo information to the Road Cargo Information System in accordance with the Import and Export (Electronic Cargo Information) Regulations (Cap. 60L); and

ii. Send relevant transportation and shipping documents and materials by email to atcs_landair@customs.gov.hk

b. For the transfer of alternative smoking products by air and sea:

i. Submit relevant cargo information to the Air Cargo Clearance System at least 3 hours before registered business vessels enter the West Coast Terminal of Hong Kong International Airport; and

ii. Email relevant transportation and shipping documents and information to the Hong Kong International Airport at least 2 hours before registered business vessels enter the West Coast Terminal at Hong Kong International Airport

atcs_seaair@customs.gov.hk

When declaring the quantity of alternative smoking products transhipped under the plan to the Road Cargo Information System/Air Cargo Customs Clearance System, the unit quantity and number of packages (cartons) of alternative smoking products must be provided, and these information must be consistent with the information displayed on the relevant transportation and shipping documents for customs verification.

The driver/captain must also bring relevant cargo documents, especially the full bill of lading, for customs officers to check and verify as necessary during the transfer process.

Transfer process

Before transporting alternative smoking products under intermodal transhipment arrangements, registered operators must ensure that the security devices installed on business vehicles/vessels are in good condition and operating normally before they can start transferring alternative smoking products.

During the transfer process, the global positioning system and closed-circuit television system installed on the business vehicle/vessel must remain on for customs tracking and monitoring. CCTV images must be retained for a minimum of 30 days. Alternative smoking products must be properly transported as follows:

i. For business vehicles: Store alternative smoking products in containers of business vehicles and cannot be mixed with other types of cargo. Containers must be equipped with electronic locks and container door latch seals to ensure that the container door cannot be opened without damaging the electronic locks and container door latch seals.

ii. For business vessels: store alternative smoking products in a manner that meets transport security standards accepted by the Civil Aviation Department, such as storage in containers equipped with metal doors and seals; for containers without metal doors or cargoes that are loaded, anti-tamper packaging nets and seals must be used.

Business vehicles/vessels carrying alternative smoking products must go directly to the specified cargo handling area #at the Hong Kong International Airport upon arrival in Hong Kong. After unloading, alternative smoking products must be immediately transferred to the cargo transfer area for storage and waiting for export.

#Cargo handling area at the Hong Kong International Airport specified by the Commissioner of Customs and Excise by notice published in the Gazette under the Import and Export Ordinance.

designated route

Business vehicles/vessels carrying alternative smoking products must use designated routes after entering Hong Kong. In the event that it is necessary to deviate from the designated route, such as a traffic accident on the designated route, the driver/captain must call the 24-hour hotline (852) 3106 4510 (applicable to business vehicles)/(852) 2116 4115 (applicable to business ships) to contact the customs for instructions/approval.

customs inspection

During the process of transferring alternative smoking products, the Customs and Excise Department can conduct surprise inspections of alternative smoking products carried by business vehicles/vessels at any time. Customs can also conduct surprise inspections on business vehicles/vessels at any time to ensure that the security devices required to be installed are in use and maintaining normal operation. If violations are discovered during the inspection/inspection period, the Customs and Excise Department may temporarily suspend or cancel the registration as appropriate.# p#pagination title #e#

The Customs and Excise Department has the right to access closed-circuit television systems installed on business vehicles/vessels, and will check and extract relevant information and data as appropriate for real-time monitoring and post-event verification.

6. Data download

practical guidance

Registration Form (Land and Air Transshipment)

Registration Form (Sea and Air Transshipment)

Change Information Form (Land and Air Transshipment)

Change Information Form (Sea and Air Transshipment)

Make an appointment for vehicle inspection

Make an appointment for vessel inspection

7. Inquiry

If you have any inquiries, you can make them through the following channels--

Email: atcs_inquiry@customs.gov.hk

Tel: (852) 3106 4508

Mail: 63 Container Port South Road, Kwai Chung, New Territories, Hong Kong

9/F, Kwai Chung Customs Building

Hong Kong Customs Land Border Control Branch

Registration and Vehicle Inspection Team