Tobacco Asia

30 tobaccoasia PRODUCT NEWS 产品新闻 Korea to Restrict Synthetic Nic Vapes Korea is taking steps to limit the usage of synthetic nicotine e-cigarettes, as the government and legislators strive to classify them as "tobacco products" through new legislation. Presently, Korea's tobacco control legislation narrowly defines tobacco products solely as those derived from the leaves of tobacco plants. This loophole has allowed certain companies to market products containing synthetic nicotine produced in laboratories rather than from traditional tobacco leaves. According to a recent report received by Rep. Park Sung-hoon from the ruling People Power Party, the health ministry highlighted that synthetic nicotine can lead to numerous detrimental health impacts on users. In light of these findings, the government is looking to broaden the legal definition of tobacco to include e-cigarettes that utilize this type of nicotine—a substance known for its high addictive potential, with some studies indicating it may be as addictive as heroin or cocaine. Additionally, a coalition of 11 lawmakers, spearheaded by DPK Rep. Jeon Jin-sook, is working to mandate that sellers display warnings on vape packaging, similar to the requirements for cigarette products, alongside the expansion of the legal definition of tobacco. The Ministry of Health and Welfare has pledged to support legislative efforts aimed at more effectively regulating the use of emerging nicotine products and increasing public awareness regarding their harmful effects on health. BAT Accused of Using Tax Loophole Global tobacco powerhouse British American Tobacco (BAT) is under fire for introducing synthetic nicotine e-cigarettes in South Korea, taking advantage of a gap in the nation's regulations. These novel synthetic nicotine products are not currently categorized as tobacco under existing laws, enabling BAT to evade tobacco taxes. BAT Rothmans, the South Korean branch of BAT Group, recently launched Nomad, a new synthetic vaping product, on November 25. Unlike traditional products that contain naturally sourced nicotine, Nomad employs synthetic nicotine product. This represents the first instance of BAT introducing synthetic nicotine items in the international market. While synthetic nicotine e-cigarettes are already present in Korea, this is the first occasion a prominent tobacco corpora- tion has officially released such a product. Critics indicate that BAT's strategy is designed to sidestep tobacco taxes. Public health experts contend that synthetic nicotine carries the same health hazards as natural nicotine, making it unreasonable to exclude it from taxation. This exemption also has considerable financial ramifications. Data from Rep. Song Eon-seok of the People Power Party reveals that Korea has potentially forfeited an estimated KRW3.38 trillion (US$2.5 million) in tax revenue over the last four years due to this regulatory gap. PMI's More Affordable Smoke-Free Products The globe's largest tobacco corporation, Philip Morris Interna- tional (PMI), is in the process of creating more affordable smoke-free alternatives aimed at current smokers in Africa, as revealed by a senior official from the US-based company. During the company's Technovation conference held in Abu Dhabi, Frederic de Wilde, president of PMI for South and Southeast Asia, the Commonwealth of Independent States, the Middle East, and Africa, stated that Africa's emerging yet price-sensitive smoke-free market presents significant opportu- nities for the S&P 100 company. Nonetheless, he noted that the price points of PMI's smoke-free products are still beyond the reach of numerous consumers across the continent. According to him, the initial smoke-free products they introduced are premium devices priced accordingly, which have seen substantial penetration in certain economies; however, in many countries within the region, only 5-10% of consumers can afford them. To tackle this affordability challenge in Africa and other developing markets, De Wilde mentioned that PMI is working on developing more budget-friendly smoke-free options. "We're innovating in the heat-not-burn front where we're piloting a new simple device that is less expensive and targeted for medium and low-price segments. We also have lineups in the e-cigarette fronts. This could become one of the biggest successes for smoke free alternatives in developing economies," he notes. EU Countries Urge Tobacco Tax Overhaul to Include Vapes Sixteen EU countries are urging the European Commission (EC) to propose a new law that would update tobacco taxation rules to include new products such as vapes, according to Reuters. Led by the Netherlands, this initiative is backed by several other nations, including Croatia, Denmark, Finland, France, Germany, Spain, and others. The finance ministers from these countries sent a letter to EC calling for an update to the 2011 EU tobacco taxation law, emphasizing that the absence of EU-wide regulations on vaping has led to inconsis- tent tax rules across member states. They claim this has created market distortions, undermining the integrity of the EU's single market. The update to the EU tobacco taxation law, originally due by the end of 2022, has been delayed, and EU govern- ments are now pressing the new EC, which took office on December 1, to prioritize this issue. The finance ministers from 16 EU countries called for the inclusion of vapes in the taxation framework, as the current system only addresses traditional tobacco products. Without a uniform EU approach, member states have implemented varying regulations, creating inconsistencies in the single market. While EC has set some regulatory standards for e-ciga- rettes—such as limits on nicotine content and requirements for labels advising against use by non-smokers—rules still differ across countries. For example, in France, vaping is banned in specific public spaces, including public transport and universi- ties, and those under 18 cannot purchase vapes. In contrast, Italy lifted its public vaping ban in 2013, though use near schools remains prohibited. Additionally, disposable vapes have become a focal point for lawmakers, with France considering a complete ban due to environmental and health concerns. The German Federal Council (Bundesrat), the upper house of parliament, also joined the call for stronger regulation of disposable vapes by urging the government to advocate for a similar ban across the EU.

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