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Since April 1, Russia has implemented an “honest labeling” policy to regulate the e-cigarette market. It requires trading activities of wholesale imports of e-cigarettes to upload the retail information of products to the honest labeling system. E-cigarette from China and other area without labels will not be able to pass Russian customs smoothly.
It has been more than half a year since the official implementation of the “honest label” system.
Recently, we contact a local Russian customs clearance company to learn about the latest situation of the Russian e-cigarette market.
The person in charge of the company says that there is large demand for compliant e cigarettes in Russian market. And due to policy reasons, there are currently few gray channels that can enter the market. Moreover, the transportation time of gray customs goods extends from about 30 days to 2 to 3 months since August.
Russian compliant logistics companies have seen a significant increase in transport volumes over the past two months. Moreover, the number of customs clearance tickets issued by these logistics companies is 3 to 4 times more than before. In addition, the logistics costs of compliant e-cigarettes are also rising. Currently it is rising from more than 30 yuan per kilogram to more than 40 yuan.
E-cigarette Product Clearance Demand in Russia Increase
The main reason for the increase in freight volume of compliant logistics companies is the sharp increase in demand from e-cigarette terminal stores and distribution stores.
In the Russian e-cigarette market, most terminal stores, supermarket chains and distributors only accept compliant products. Although some e-cigarette stores may sell both compliant and non-compliant products, the shelf rate of compliant products is gradually increasing, with the lowest proportion reaching 50%.
The person in charge of the company reminds that due to the high value and tax of compliant e-cigarette products, it is difficult to transport them on a large scale like gray-off products. Thus only small batches can transport. In addition, the procedures for applying for honesty labels for compliant products are relatively cumbersome. And it also takes a long time to ensure compliance channels in logistics, distribution and stores. Therefore, he said that if a e cigarette company wants to put e cigarette products on the shelves in compliance with the regulations in the Russian market, it needs to make full preparations at least three months in advance.
In addition, the person in charge also reveals that as far as he knows, Russia will raise taxes on e-liquid in early 2024. By then, the cost of e-cigarette products will double. Therefore, the e-cigarette manufacturer and e-juice factories should pay attention to this.
