Russian customs clearance firm says demand for compliant vaping products is surging, with three mont

Wang Juncheng, general manager of Russian customs clearance company Esuqing, reminded businesses that if they want to put products on the Russian market in full compliance, they need to make thorough preparations at least three months in advance.

【Original by Two Supremes】Since April 1, Russia has implemented the "Honest Mark" policy to regulate the e-cigarette market, requiring wholesale import trade involving e-cigarettes to upload the relevant retail information of products to the Honest Mark system. E-cigarette products without labels will not be able to pass through Russian customs smoothly. 

Now that more than half a year has passed since the formal implementation of the "Honest Mark" system, Two Supremes contacted Wang Juncheng, general manager of local Russian customs clearance company Esuqing, on November 20 to learn about the latest developments in the Russian e-cigarette market. 

According to Wang Juncheng, demand for compliant products in the Russian market is currently high, and because of the policy, there are now very few gray customs clearance channels available. Moreover, since August, the transit time for some gray-channel shipments has increased from around 30 days in the past to two to three months.  

Over the past two months, shipment volumes handled by compliant logistics companies in Russia have risen significantly. Wang revealed that the number of customs clearance declarations processed by Esuqing has increased by three to four times compared with before. In addition, logistics costs for compliant e-cigarettes are also rising, having gone from just over RMB 30 per kilogram to more than RMB 40 per kilogram.  

He pointed out that the main reason for the increase in freight volume among compliant logistics providers is the sharp rise in demand from e-cigarette retail stores and distribution outlets. In the Russian e-cigarette market, most retail shops, supermarket chains, and distributors accept only compliant products. Although some stores may sell both compliant and non-compliant products, the shelf placement rate for compliant products is also gradually increasing, with even the lowest share reaching 50%.  

Wang also reminded businesses that because compliant products carry higher cargo value and tax costs, they cannot be shipped in large volumes as gray-channel products can, and instead must be transported in small batches. In addition, the procedures for applying for Honest Mark labels for compliant products are relatively cumbersome, and ensuring compliant channels for logistics, distribution, and retail stores also takes considerable time. Therefore, he said that if companies want to launch products on the Russian market in compliance, they should make full preparations at least three months in advance. 

In addition, Wang disclosed that, to his knowledge, Russia will raise the tax on e-liquid in early 2024, which will double the cost of e-cigarette products.