Customs haul of illicit heat-not-burn cigarettes jumps by 32 per cent after announcement of Hong Kong ban
- Demand believed to be fuelled by stockpiling efforts before proposed law kicks in
- Some users are unfazed by legislation because buyers will not be prosecuted and they expect to get products on black market
Hong Kong customs has seized almost 32 per cent more illicit heat-not-burn cigarettes after the government announced plans for a blanket ban on new tobacco products in mid-February.
A senior customs source said smugglers could be stockpiling heat-not-burn cigarettes before the proposed ban kicked in as market demand was huge. The law, if passed, would also choke supply on the black market.
Since authorities revealed plans on February 13 to amend the Smoking Ordinance to ban any import, sale and promotion of new smoking products, including e-cigarettes, heat-not-burn products and herbal cigarettes, customs officers have intercepted 250,000 sticks of untaxed heat-not-burn cigarettes between February 14 and 28 in 36 cases.
The haul had an estimated market value of about HK$700,000 (US$89,000).
This compared with only 190,000 sticks seized in the first 13 days of the same month.
Among all cases in the second half of February, 33 involved arriving passengers, while two were linked to postal parcels and one was from an operation carried out within the city.
HK$180,000 of heat-not-burn cigarettes seized by customs ahead of ban
“The demand for heat-not-burn cigarettes is still large in Hong Kong. We also believe some syndicates are attempting to stockpile related products before the new law comes into effect,” the source said.
“Most of those caught are arriving passengers. Heated tobacco is very popular in nearby countries such as Japan. It can be easily bought and then trafficked into Hong Kong.”
We also believe some syndicates are attempting to stockpile related products before the new law comes into effect
The proposed ban on imports will cover parcels, cargo and articles brought in by incoming travellers. But transshipment, purchase and individual use of the three types of products will remain legal.
Heat-not-burn cigarettes deliver an aerosol containing nicotine and other chemicals via an electronic device that heats up, rather than combusts, a tobacco stick at temperatures of about 350 degrees Celsius.
They are marketed as being trendier and less harmful than traditional cigarettes, but are still deemed to be tobacco products and dutiable commodities under the law.
The largest single case involved an incoming passenger, arriving at the Hong Kong International Airport from Tokyo, smuggling 42,000 sticks of untaxed heat-not-burn cigarettes in luggage on Valentine’s Day – a day after the proposed law was announced.
Hong Kong pushes ahead with blanket ban on e-cigarettes
Overall, the amount of contraband heat-not-burn products seized in the first two months of the year jumped more than 15-fold to about 1 million sticks compared with the same period in 2018. The haul had an estimated market value of about HK$2.9 million. Officers arrested 99 individuals.
Chief Executive Carrie Lam Cheng Yuet-ngor first revealed the ban in her second policy address last October, in a bid to nip the relatively new habit in the bud before it became entrenched in the city.
Lim, a smoker of 20 years who turned to heated tobacco last year, said he did not feel the urge to stock up at the moment because he believed supply would not be completely cut off.
Health minister compares e-cigarettes to an epidemic as she defends ban
“Like other illicit products such as drugs, there will still be supply in the underground market,” Lim said. “And as a buyer, I’m not at risk under the law. So I have nothing to worry about.”
A spokesman for the Customs and Excise Department said: “Hong Kong customs spares no effort in combating illicit heat-not-burn products. The department will closely monitor the situation and take timely enforcement actions.”
Secretary for Food and Health Professor Sophia Chan Siu-chee earlier said the legislative amendment targeted supply and not users.
“Regarding whether we will ban the possession or use of these products, after the legislation has been enacted for a while, this should not be an issue because people will not be able to buy them,” Chan said last month.
She pledged to work with police and customs to examine loopholes in the planned legislation.
The ban will come into force six months after the ordinance is gazetted upon passage of the bill. Offenders could face a maximum penalty of six months in jail or a fine of HK$50,000.
