Hong Kong’s e-cigarette ban is threatening its status as a regional transshipment hub.
Regulations governing the transshipment of e-cigarettes into Hong Kong hit the volume of air cargo leaving Hong Kong, threatening the SAR’s position as a regional transshipment hub.
Since the Smoking Ordinance 2021, which forbids the import of smoking items such as e-cigarettes, heated tobacco products, and herbal cigarettes, went into effect last April, the products can no longer be trucked into Hong Kong for transshipment to be transported overseas. Air transhipment cargo and transit cargo that is kept on board aircraft and boats are exempt.
The Hong Kong Association of Freight Forwarding and Logistics (HAFFA) held an emergency meeting with industry organizations, deputy financial secretary Michael Wong Wai Lun, secretary for transport and logistics Lam Sai Hung, and legislative council member for the transport functional constituency Frankie Yick Chi Ming about the ban, saying it “stifled the freight logistics industry environment and negatively impact the livelihoods of its employees.”
According to a HAFFA poll among its members, the affected e-cigarette cargo is thought to be around 330,000 tons annually, which equates to a 10% loss to Hong Kong’s annual air export volume. It is estimated that this re-export cargo, which is subject to the restriction, is worth more than RMB120 billion (US$17.33 billion).
HAFFA chairman Gary Lau said, “The ordinance has led to a serious decline in Hong Kong's overall air export volume, causing the industry, airlines, cargo terminals, and Hong Kong International Airport to lose hundreds of thousands of tons of re-exports every year.”
“The Association agrees with the original intention of the legislation to protect public health and establish a smoke-free Hong Kong, but at the same time we strongly urge the government to allow the freight and logistics industry to restore the transshipment mode, which is vital to the survival of the industry.”