Will E-cigarettes Vaporize the Industry? (Part I)

Source from:  Tobacco Asia  11/27/2013

Many counties currently refuse to allow import and/or sale of e-cigarettes for a number of reasons. Classification remains a major hurdle for e-cigarettes to overcome, with many countries still not recognizing them as tobacco products and insisting instead that they fall under pharmaceutical or other categories, which can severely restrict import and sales potential.

Youth smoking concerns, including the concept that under-age smokers can use e- cigarettes at home or at school without the risk of being caught out by tell-tale residual tobacco smoke, also come into play, as do fears of health risks, none of which have yet been proven and some of which border on the downright hysterical – such as a claim by Dr Wedad Al Maidour, head of the UAE's National Tobacco Control Program and director of Primary Healthcare Centres at the Health Ministry, who said that e-cigarettes "have carcinogens and toxic chemicals such as components of antifreeze and brake fluids." She failed to mention that these same ingredients are also found in similar quantities in many other ingestible consumer products including whipped cream, pharmaceuticals and cosmetic products. This lack of perspective and clarity continues to impede the development of effective, sensible regulations covering the classification, manufacture, importation, distribution, promotion, taxation and sale of e-cigarettes.

Despite this, e-cigarettes have continued to proliferate in markets that ostensibly ban or severely restrict their availability.

E-cigarettes around the region

For example, although the UAE has banned the importation and sale of e-cigarettes citing health issues, e-cigarettes are smoked it is possible to buy vape products despite the ban both online and at various outlets throughout the Gulf States including through traders of Chinese products in Free Trade Zones.

Singapore has banned the product, adopting a wait-and-see attitude regarding effects on health and youth smoking that observers claim will be influenced by future US FDA decisions. The law under which e-cigarettes are banned (Secion 16 (1) of the Tobacco (Control of Advertisements and Sale) Act, which is enforced by the Health Sciences Authority (HSA) mandates fines for those caught importing, distributing or selling the product as this legislation prohibits "the importation, distribution, sale or offer for sale of any confectionery or other food product or any toy or other article that is designed to resemble a tobacco product or the packaging of which is designed to resemble the packaging commonly associated with tobacco products" – which is ironic as the e-cigarette industry is fighting a global battle to have e-cigarettes to be classified as tobacco products. However, it is not illegal to smoke and e-cigarette and they are smoked throughout then island state.

Hong Kong on the other hand, has not only restricted the distribution, sale and importation of e-cigarettes, it has also imposed stiff penalties ranging up to two years in prison for possession of a device. Tourists can be exempted from this regulation but it is advised that they bring a letter from their doctor explaining why they should be allowed to use an e-cigarette.

Thailand has also banned the sale and importation of e-cigarettes, although unless pre-informed of the fact one might not be aware of this as they are widely available in many shopping malls such as MBK and on street stalls throughout the capital and elsewhere. However, getting hold of replacement capsules may present a challenge for visiting e-cigarette smokers.

Other countries in the region are perhaps a bit more pragmatic in their current approach to e-cigarettes, while others are relatively open markets for them.

Australia classifies nicotine as containing an S7 poison and restricts importation (other than as found in conventional tobacco products). To licensed industrial application importers or manufacturers. However, Australian's are allowed to import three month's supply of an S7 poison for personal use, so it is possible to acquire the cartridges legally, either online or carried as personal property through a border.

New Zealand's Ministry of Health has ruled that the nicotine cartridge used in e-cigarettes falls under the requirements of the Medicines Act and these cannot be sold except as a registered medicine. However, the importation of the device, cartridges and e-liquid for personal use is allowed, but advertising e-cigarettes in not allowed under the Smokefree Environments Act.

Malaysia has decided e-cigarettes are pharmaceutical products and allows their importation and sale, albeit through pharmacies that require purchasers to produce a doctor's prescription. That said, there are many online sites promoting and selling e-cigarettes aimed at the Malaysian market, and it is doubtful that these require a prescription to be presented.

In India, e-cigarettes are legal and are touted as a way to get around extensive smoking bans in place, including on airplanes. They are also marketed as a way to quit smoking and as a healthier alternative to smoking conventional tobacco products. They are readily available at retail outlets and online. India has a few companies manufacturing e-cigarettes for sale domestically and for export. E-cigarettes are also legal and available in Pakistan and Nepal.

In South Korea, e-cigarettes are legal and widely used, but they are heavily taxed, perhaps an indication of the future development in markets elsewhere.

Other regions

In the US, e-cigarettes are legal to use after successful challenges to FDA attempts to ban their importation. Neighboring Canada, with its strong anti-smoking laws, forbids the importation or sale of e-cigarettes that contain nicotine. E-cigarettes with non-nicotine cartridges are however accepted as a medical device used as a cessation product.

EU member states have different positions on e-cigarettes, as reported in our previous article. Even though 15-20 EU countries classify it as a drug, enough don't so it is easy enough to import to a country that allows it and pass it on to other counties as there are no borders.

In the UK, the importation and sale of e-cigarettes is currently legal, although the government is still considering its position and may be affected by subsequent EU rulings. Advertising is currently legal. In the Netherlands, the importation and sale of vape products is legal, and as it is now considered a consumer product, advertising is legal.

In Germany, the situation is somewhat confusing as although it is legal to use e-cigarettes and they are readily available, some states regard them as a medical product and some customs officers are reportedly not allowing them in the country so most e-cigarette companies import them from the Netherlands where they are legal.

Switzerland has imposed heavy restrictions on the sale of e-cigarettes and has banned marketing citing the nicotine component. E-cigarettes minus the cartridge can be legally marketed, provided no therapeutic clams are made, but consumers can only buy up to 40 replacement cartridges can for personal use only. Enditem