Customs finds difficulties because there is no e-cigarette management policy

VCN - E-cigarette products are invading and being used more and more commonly in our country, especially among young people, teenagers, and students. Meanwhile, there is currently no management policy for this item, making it difficult for Customs to determine violations and apply sanctions.
Confusion in management over next-generation tobacco products Confusion in management over next-generation tobacco products
Which items are subject to excise tax? Which items are subject to excise tax?
Ho Chi Minh City: dealing with many e-cigarette trading points Ho Chi Minh City: dealing with many e-cigarette trading points
Customs finds difficulties because there is no e-cigarette management policy
Exhibits in the seizure of more than 100,000 e-cigarette products at the end of 2023 in Bac Ninh.

Many types of e-cigarette products appear

According to statistics from the General Department of Customs, from 2020, local Customs have seized 28 cases related to e-cigarettes, confiscating and destroying thousands of e-cigarette products.

Most recently, on March 27, 2024, the interdisciplinary inspection team chaired by Market SurveillanceTeam No. 4, in coordination with the Economic Police Team (Mong Cai City Police), and the drug-related crime investigation police division (Quang Ninh Provincial Police), Drug Enforcement Team (Quang Ninh Customs Department) inspected and discovered many e-cigarettes and accessories at a shop in Mong Cai city, Quang Ninh province. On the labels of all the above goods there is no barcode, no information about origin, no invoices or documents, so there is no basis to determine the origin if they are used, they may be harmful to human health.

Previously, on February 20, 2024, at Noi Bai International Airport, Noi Bai Aviation Security Center coordinated with Noi Bai International Airport Border Gate Customs Branch to arrest a passenger carrying on bag containing 60 packs of IQOS brand electronic cigarettes (unused).

There are many smoke-free tobacco products that use electronic devices to heat a solution containing nicotine or tobacco ingredients to create nicotine-containing vapor without the combustion process upon using on the market. Among them, e-cigarettes and heated cigarettes are the most common products. However, the General Department of Customs said that current legal regulations do not define what electronic cigarettes and heated cigarettes are.

Analyzing current legal regulations on the management of electronic cigarettes and heated cigarettes, the General Department of Customs said, according to the provisions of the Law on Foreign Trade Management, Decree No. 69/2018/ND- CP detailing a number of articles of the Law on Foreign Trade Management, Decree No. 67/2013/ND-CP detailing a number of articles and measures to implement the Law on Prevention and Control of Harmful Effects of Tobacco on drug business (amended and supplemented in Decree No. 106/2017/ND-CP, No. 08/2018/ND-CP, No. 17/2020/ND-CP of the Government), new generation tobacco products have not yet been identified in the List of goods banned from export as well as the List of goods exported and imported according to licenses and conditions.

According to the assessment of many experts, new generation cigarettes are a potentially risky product that negatively affects human health and economic and social life, but are currently not specifically regulated in law. The Ministry of Finance (General Department of Customs) has repeatedly exchanged with the Ministry of Industry and Trade to clarify management policies and recommended that the Ministry of Industry and Trade soon develop or advise competent authorities to promulgate regulations to manage new generation cigarettes (e-cigarettes, heated cigarettes including components, assemblies, flavorings, chemicals...).

Regarding this issue, on October 26, 2021, the Government Office issued official dispatch No. 7830/VPCP-CN announcing the guidance of Deputy Prime Minister Le Van Thanh on developing management policies for new generation tobacco products in Vietnam, it requires: The Ministry of Industry and Trade to clarify the legal basis and authority to promulgate pilot policies to manage new generation tobacco products; coordinate with the Ministry of Health to continue researching and evaluating new generation tobacco products, on the basis of ensuring consumer health and harmonizing the interests of stakeholders. However, to Currently, the Ministry of Industry and Trade and the Ministry of Health have not issued or submitted to competent authorities for promulgation legal documents regulating new generation tobacco products, leading to difficulties and obstacles for the Customs in the handling import procedures for this item.

The policies must be issued soon to ensure management

From the perspective of state management of customs, strictly implementing the Government's direction, the General Department of Customs has issued a document directing local customs departments not to handle import procedures for e-cigarettes, heated cigarettes.

Regarding the import of electronic components to produce and assemble e-cigarette parts, a number of enterprises have been granted Investment Certificates to manufacture, process and assemble e- cigarette parts such as the punch core at the tip of the e-cigarette, heating module (the product is simply an electronic device, does not contain medicinal solution, does not contain tobacco), then export all products abroad, do not consume, use or sell in the Vietnamese market. According to the provisions of Article 5 and Article 42 of the Investment Law, "Investors have the right to conduct investment and business activities in industries and lines that this law does not prohibit" and "investors are responsible for complying with provisions of this law, and the investment certificate during the implementation of investment projects". Currently, the Customs agency only handles procedures for importing electronic components for processing and manufacturing products that are equipment used in e-cigarettes (not including tobacco solution or any tobacco products) to export abroad according to the investment fields licensed in the investment certificate.

According to the General Department of Customs, because there is no management policy for e- cigarettes and heated cigarettes, the Customs agency finds difficulties in defining violations and applying sanctions.

To resolve problems, competent authorities need to soon issue legal documents regulating imported e-cigarettes, heated cigarettes as well as imported electronic equipment and components to manufacturing, assembling and processing electronic devices used for e-cigarettes and heated cigarettes.

By Ngoc Linh/ Huyen Trang

Related News

Chi Ma Customs strictly controls in targeting areas

Chi Ma Customs strictly controls in targeting areas

VCN - In order to closely control smuggling and trade fraud across the area, Chi Ma Border Gate Customs Branch (Lang Son Customs Department) promotes solutions to patrol and control at targeting area.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.

Latest News

E-commerce frauds require utmost in attention from regulators

E-commerce frauds require utmost in attention from regulators

Great efforts have been made to combat counterfeit goods and trade fraud products on e-commerce channels as online shopping has become increasingly popular for many people amid booming e-commerce activities.
Is animal feed containing Formic Acid precursors "helpless" in management?

Is animal feed containing Formic Acid precursors "helpless" in management?

VCN - According to regulations, import activities of precursors must be controlled from raw materials to final products. However, there are some items containing precursors that have management inadequacies and it is not clear which sector is responsible for?
Businesses and people expect VAT cut extension to be approved

Businesses and people expect VAT cut extension to be approved

People and businesses are looking forward to the Government's proposal on extending VAT reduction in the last six months being considered and approved by the National Assembly.
Proposal to continue reducing VAT by 2% to support people and businesses

Proposal to continue reducing VAT by 2% to support people and businesses

In the first 4 months of 2024, Vietnam's economy achieved a higher growth rate than the same period of 2020-2023. However, the difficulties of the economy are still great, the recovery of the business community is still slow. Therefore, the Government has just submitted a proposal to the National Assembly for consideration, allowing to the continued implementation of the policy of reducing the value-added tax (VAT) rate by 2% for a number of groups of goods and services that are being subjected to VAT rate of 10% in the last 6 months of 2024. This is a support policy that is bringing many practical effects to people and businesses.

More News

Research and correct customs supervision processes at international airports

Research and correct customs supervision processes at international airports

VCN - To continue to improve professional processes related to customs inspection and supervision, General Department of Vietnam Customs has drafted a decision to amend Decision No. 3280/QD-TCHQ dated September 30, 2016 on the inspection and supervision process for luggage of people on exit and entry; customs supervision activities at international airports.
Small, low-value items imported on e-commerce platforms should be taxed

Small, low-value items imported on e-commerce platforms should be taxed

Millions of packages of small, low-value items that are crossing the border into Vietnam daily should be subjected to VAT, special consumption and environmental taxes, according to industry experts and domestic e-commerce sellers.
Are goods imported on-spot for export production eligible for tax refund?

Are goods imported on-spot for export production eligible for tax refund?

VCN - That is a problem of the Binh Duong Customs Department related to the process of handling tax refunds for goods imported to produce exported goods and exported by Thai Binh Investment Joint Stock Company.
Risk prevention solutions for export processing and production enterprises

Risk prevention solutions for export processing and production enterprises

VCN - Identifying common errors to comply with regulations, prevent risks, and limit mistakes arising in preparing final settlement reports is an issue which many export processing and production enterprises concern.
Conditions for price reduction of imported goods

Conditions for price reduction of imported goods

VCN - To meet the price reduction conditions, the documents, sales contracts, and price reduction agreements must state the reason for the price reduction.
Circular 83/2014/TT-BTC will be abolished from June 8

Circular 83/2014/TT-BTC will be abolished from June 8

VCN - On April 23, the Minister of Finance issued Circular 25/2024/TT-BTC on abolishing Circular 83/2014/TT-BTC guiding the implementation of Value Added Tax (VAT) under Vietnam's Nomenclature of imports. Accordingly, Circular 83/2014/TT-BTC will be abolished from June 8, 2024.
Proposal to continue reducing VAT by 2% in the last  6 months of 2024

Proposal to continue reducing VAT by 2% in the last 6 months of 2024

VCN - The Government has just submitted a proposal to the National Assembly to consider and allow the continued implementation of the policy of reducing Value Added Tax (VAT) by 2% for a number of groups of goods and services that are currently subject to a VAT rate of 10% in the last 6 months of 2024 (from July 1, 2024 to December 31, 2024). According to the Government's calculations, applying the policy of reducing the VAT rate by 2% for the last 6 months of 2024 reduces revenue by about 24 trillion VND.
Seafood exporters are worried about some inadequacies from the two new decrees

Seafood exporters are worried about some inadequacies from the two new decrees

VCN - From May 2024, two new Government decrees directly related to the enforcement of fisheries laws by seafood exporting enterprises will take effect, but have inadequate contents, makes businesses worried.
Risk prevention solutions for processing and export manufacturing businesses

Risk prevention solutions for processing and export manufacturing businesses

VCN - Identifying common errors to comply with regulations, prevent risks, and limit errors arising in preparing final settlement reports is an issue of concern to many export processing and manufacturing enterprises.
Read More

Your care

Latest Most read
E-commerce frauds require utmost in attention from regulators

E-commerce frauds require utmost in attention from regulators

Great efforts have been made to combat counterfeit goods and trade fraud products on e-commerce channels as online shopping has become increasingly popular for many people amid booming e-commerce activities.
Is animal feed containing Formic Acid precursors "helpless" in management?

Is animal feed containing Formic Acid precursors "helpless" in management?

VCN - According to regulations, import activities of precursors must be controlled from raw materials to final products. However, there are some items containing precursors that have management inadequacies and it is not clear which sector is responsible
Businesses and people expect VAT cut extension to be approved

Businesses and people expect VAT cut extension to be approved

People and businesses are looking forward to the Government's proposal on extending VAT reduction in the last six months being considered and approved by the National Assembly.
Proposal to continue reducing VAT by 2% to support people and businesses

Proposal to continue reducing VAT by 2% to support people and businesses

The Government has just submitted a proposal to the National Assembly for consideration, allowing to the continued implementation of the policy of reducing the VAT rate by 2% in the last 6 months of 2024
Research and correct customs supervision processes at international airports

Research and correct customs supervision processes at international airports

GDVC has drafted a decision to amend Decision No. 3280/QD-TCHQ dated September 30, 2016 on the inspection and supervision process for luggage of people on exit and entry
Mobile Version