Freight forwarders in Hong Kong are hailing the passing of a new measure that would resume intermodal e-cigarette product transhipment after an earlier ban on land-to-air transhipment of e-cigarette products in Hong Kong.

"The Hong Kong Association of Freight Forwarding and Logistics (HAFFA) has hailed the passing of the Import and Export (Amendment) Bill 2023 by LegCo on June 21 as a milestone victory in the history of the Association and a testament to the importance of its role in protecting one of the SAR's four key industries," HAFFA said in a statement.

The Association noted that the amendments, which relate to the transhipment of intermodal e-cigarette products, were passed by a majority vote in LegCo after the second and third readings and will shortly be published in The Government of the Hong Kong Special Administrative Region Gazette.

They will come into operation on the day of publication. 

"This is a great victory for Hong Kong, our industry and all our members, and comes as a result of the relentless efforts of HAFFA. From day one, we have harnessed our unrivalled industry expertise and experience to lobby for amendments to the original Bill, clearly and repeatedly communicated the full consequences of its implementation, and provided workable and effective solutions to address issues of concern," said  Gary Lau, chairman of HAFFA.

Lau noted that HAFFA had been regularly engaging with countless government officials since late 2021 and has "not faltered in its determination to protect a vital Hong Kong industry from calamity" on behalf of the industry.

Intermodal e-cigarette transhipment to resume

"Immediately upon publication of the Import and Export (Amendment) Bill 2023 in the Gazette, intermodal e-cigarette products transhipment via Hong Kong will be resumed under a new registration scheme to be supervised and enforced by the Customs and Excise Department," HAFFA said.

Under the scheme, operators are required to register with the department and comply with stringent, secure regulations to guard against any possibility of e-cigarette products reaching the local market during the transhipment process.

HAFFA earlier cited data from its members suggesting that affected e-cigarette cargo is estimated at 330,000 tons per year, which translates to a loss to Hong Kong of approximately 10% of the city's annual export volume by air.

The value of this re-export cargo affected by the ban is estimated to exceed CNY120 billion (US$17.33 billion).