Recently, 2Firsts observed that the Australian Therapeutic Goods Administration (TGA) is investigating the Chinese freight forwarding company Huawell Trade Export Shipping. The company is being investigated for promoting and transporting e-cigarettes to Australia via social media, potentially violating local regulations.
In the development of the e-cigarette industry, e-cigarette logistics service providers are not only a key link connecting production with global consumers, but also play an important role in ensuring product compliance. It is worth noting that the State Tobacco Monopoly Administration issued a notice on August 11 regarding the revision and issuance of regulations on e-cigarette logistics management. Article 16 specifically states that e-cigarette logistics service providers are not allowed to provide services intended to bypass domestic and foreign regulatory systems. This regulation emphasizes that e-cigarette companies must comply with the laws and regulations of their target markets when engaging in international trade to avoid legal risks and economic losses.
In this context, 2Firsts communicated with Tang Shunliang, a partner at Tianyuan Law Firm with many years of experience in the tobacco industry, regarding industry compliance and legal risk issues.
According to reports, current laws in Australia mandate that e-cigarette importers must notify the Therapeutic Goods Administration (TGA) whether their products meet standards.
In response, lawyer Tang mentioned that the investigation by the TGA into Huawell company is still ongoing. This regulatory model is worth paying attention to as it poses a dual risk for Chinese e-cigarette exporters, involving both domestic and international regulations. If an e-cigarette exported to the target market is found to be in clear violation and reported by the local government, there is a high risk of being investigated domestically.
Furthermore, violating regulations could result in products being seized and destroyed by local governments, causing significant losses for exporters. For example, the Philippine Bureau of Internal Revenue recently mandated that illicit tobacco and e-cigarette products must be destroyed within 20 days (Philippine Bureau of Internal Revenue new rule: e-cigarettes and other seized items must be destroyed within 20 days, non-essential items will be publicly auctioned). Such regulations could prevent exporters from recovering their payments.
Against the backdrop of strict regulations on e-cigarettes, Australia's illegal tobacco market continues to thrive. Investigation by 2Firsts has revealed glimpses of this illicit market on social media platforms such as Facebook. In addition to the freight company Huawell illegally promoting the transportation of e-cigarettes, there are also e-cigarette dealers claiming on their social media accounts to be able to bypass Australia's customs inspections (E-cigarette dealer boasts of illegal customs evasion, posing a challenge to Australia's border control).
In response, Counsellor Tang believes that facing the complex and rapidly changing international market, "compliance" is the key word, and e-cigarette exporters should fully prepare for compliance. With the recent revisions to e-cigarette trading and logistics rules becoming increasingly clear, exporters need to keep up with the updates to e-cigarette trading and logistics rules and thoroughly understand the compliance requirements of various countries. Only when both exporters and buyers have a compliance mindset can export risks be minimized.
Previously, 2Firsts attempted to contact Huawell Trade Export Shipping Company for further information, but they refused to communicate. In addition, 2Firsts reached out to the TGA, but had not received a response as of the publication date. As the investigation progresses, more details may become clearer, and 2Firsts will continue to monitor developments in this case.
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