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Broad Far’s ESG consciousness is reflected in the company’s NUSO brand. Credit: Broad Far (Hong Kong) Ltd.
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NUSO “Carmine.” Credit: Broad Far (Hong Kong) Ltd.
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Credit: Broad Far (Hong Kong) Ltd.
Chinese exporters of heated tobacco products are bracing for even more disposal rules for used HNB sticks in the regulation-crazy European Union.
With the popularity of heated tobacco (aka heat-not-burn, or HNB) devices increasing globally, it is inevitable that the amount of waste in the form of used HNB sticks and cartridges also rises sharply. As they generally contain nicotine and other chemical substances, the sticks are a potential environmental hazard and therefore should be disposed of safely and responsibly. A growing number of countries – including the United States and United Kingdom but in particular the regulation-crazy European Union – incorporated disposal rules in their existing tobacco product legislations.
The EU’s Directive 2019/904/EC, commonly referred to as the Single-Use Plastics Directive (SUPD) and which came into force in July 2021, already set general rules for the manufacture, sale, distribution, and use of a broad range of single-use plastics. That also includes tobacco product filters containing plastic elements. Although HNB products are not explicitly mentioned in the directive, they still “may fall under that scope,” according to Broad Far (Hong Kong) Limited. The firm has its own multiple-device-compatible HNB stick brand, NUSO, but also acts as a prominent OEM manufacturer for a multitude of European brands, according to its marketing director, Chelsea Zhu. While its HNB sticks are currently manufactured at a facility in Cambodia, the company poured heavy investment into constructing a second factory on Indonesia’s island of Batam, expected to become operational in the second half of 2022.
Chinese companies such as Broad Far are quite reliant on exports to Europe, thus increasingly more stringent EU regulations do not exactly let them break out in joyful dancing. Yet they are also very willing to adjust to just about anything that is coming their way.
“We are extremely mindful of complying 100% with any laws and regulations of the regions to where we export,” asserted Zhu. “For instance, NUSO tailors its flavor profiles and packaging to all local regulations.” As the EU’s SUPD also puts restrictions on plastic elements in tobacco product filters, Zhu added that her company was already working on “third-generation HNB sticks” for its NUSO brand that will “replace non-degradable plastics with biodegradable materials.” The company expects a rollout in the third quarter of 2022 and is likely also going to offer this new technology to its OEM clients so they can “meet environmental protection and safety standards.”
Even though plastic elements may no longer be present in such latest-generation sticks, there still will be the end consumer to contend with. “Most end customers still think that used HNB sticks are just like any other [household] rubbish,” Zhu pointed out. “They don’t know exactly how harmful they are – and how valuable for recycling. Besides, there [currently] are no enforcement actions [by EU authorities] when [end consumers] disregard regulations,” she claimed. But the EU bloc – where these days seemingly everything is being regulated down to minutest detail – is already on the case in the form of Directive 2008/98/EC, also known as the Extended Producer Responsibility directive, (EPR).
This absurd legalese gem largely takes compliant waste disposal out of the hands of end consumers and squarely delegates it to manufacturers, importers, distributors, and retailers. The directive addresses pretty much all and any product components and even their packaging, holding manufacturers (and by extension their supply chain partners) responsible throughout a product’s lifecycle, including correct disposal, recycling, and take-back. While this also would affect actual HNB and e-smoking devices (vaporizers) and their components, HNB sticks and cartridges are not explicitly included at this point. However, according to the directive, individual EU member states have the option to enact their own local EPR obligations for the waste disposal of such items.
Even when in force, the ramifications of the EPR directive are not going to affect HNB stick manufacturers like Broad Far directly, lest they are required to re-import used HNB sticks and their packaging materials back to China. Rather, the onus of take-back, recycling, and disposal will be on their business partners in the EU. And as usual, the associated costs of these added responsibilities are probably going to be passed on to end consumers, leading to higher retail prices. That in turn may well result in decreasing sales for the actual manufacturers.
However, tobacco businesses also are already bracing for the third installment of the EU’s Tobacco Products Directive (TPD3), anticipated to be on the table towards the end of this year.
Compared with the original legal framework (TPD1), its successor TPD2 had tagged along with substantial additional restrictions for the to-bacco industry at large. This knowledge is putting many suppliers – including those in the HNB sector – a little on edge that TPD3 may turn out even harsher. But Broad Far is ready, said Chelsea Zhu. “We pay constant attention to what is developing regarding the EU’s Tobacco Products Directive, particularly in the area of safe disposal of packaging and used HNB sticks. And regardless what TPD3 will bring, we are going to be fully compliant with it once it launches.”
Perhaps as a sort of “pre-emptive strike”, the company is currently coordinating with its distribution partners to initiate a “campaign for safe disposal of used HNB sticks”. “For example, we strive to set up a relevant point-of-sale management system with our partners as well as identify local environ-mental protection organizations to help us promote the benefits of safe disposal, such as the provision of dedicated disposal bins at retail outlets,” Zhu elaborated. Though Tobacco Asia reckons that to be a gigantic task to be accomplished, it is perhaps the only long-term solution; not only for Broad Far but other major Chinese suppliers, too, if they want to retain their EU presence.
Legal Disclaimer: While Tobacco Asia has deployed all due diligence in reporting the legal aspects of the article topic correctly, neither the author nor publisher can be held liable for possible omissions and/or inaccuracies contained therein.