Mainlanders to pay more for milk smuggled from Hong Kong

Hong Kong’s coming campaign to control infant formula exports to cause higher prices.

Media reports said that online retailers of infant formula plan to raise prices on milk powder smuggled from Hong Kong. Some RMB 10 could be added to the price of baby milk powder as a result.

Retailers also plan to limit individual sales because of Hong Kong’s campaign to limit exports of infant formula.

The new Hong Kong rules provide that beginning March 1, the export of powdered formula for infants and children under 36 months, including milk powder and soya milk powder will be prohibited without a license, and individuals aged 16 or older will be allowed to pass through customs with only two cans of 0.9 kilo.

As a result, milk powder smuggled from Hong Kong is now expected to cost as much as legal imports. The regulations will hurt online sellers but will limit smuggling and benefit legal importers.

Hong Kong’s previous infant formula shortages since 2011 were largely caused by purchases from mainlanders and smugglers. One retailer expecred the impending curbs to have little influence on the mainland milk powder industry given the large market size.