Congress, after passing the PACT Act few months ago, has now decided to expand its scope. Congress now has amended the PACT Act to Apply to All Vaping Products, not only disposable or flavored vape devices, thereby posing new challenges to everyone in the vape industry from Manufacturers to retailers.
At HQD TECH USA, we are committed to providing the vaping community with the latest and most relevant news. In 2020, the PACT Act was signed into law in the U.S. and it has several major ramifications (not limited to shipping restrictions) on how vaping community, companies and consumers alike, will be able acquire their tasty vapes.
Cogress initially introduced the Prevent All Cigarette Trafficking (“PACT”) As part of the “Consolidated Appropriations Act, 2021,” in late 2020. Initially the law restricted the shipping and handling of flavored disposable vape products. However, Congress in early 2021 amended the Act to apply to ALL e-cigarettes and ALL vaping products.
The common misconception is the that the law will only affect shipping laws related to vaping products. However, the Act now has other laws:
Vape companies and vape shippers now have to report ALL interstate sales and shipmnets to state tobacco tax administrators to counteract illict sales and tax evasion.
The amended PACT Act now dictates that vape sellers have to file a monthly report with the state tobacco tax administrator and any other local or tribal entity that taxes the sale of cigarettes.
For online vape retailers, they have to register with each state tobacco tax administrators office and pay taxes directly to each state they supply with vape products.
Most importantly, The PACT Act now completely prohibits the use of the U.S. Postal Service (“USPS”) to deliver e-cigarettes, smokeless tobacco products and all vaping products directly to consumers.
Although USPS has not fully explained the rollout of the regulations, companies should prepare for the mail ban to be effective around April 27, 2021.
Its critical to note that commonly used carriers, FedEx, UPS and DHL have recently announced that they would cease all deliveries of vapor products locally and internationally to USA. According to a statement from FedEX “electronic cigarettes, vaping liquids, and other vaping products in the FedEx global network” will all be probihited. Similarily, A UPS spokesperson declared that “UPS will not transport vaping products to, from, or within the United States due to the increased complexity to ship those products.”
By limiting delivery options of vaping products, PACT Act limits underage access, which is the core objective of the measure. At HQD TECH USA, we ensure that we will comply with all state and federal laws to continue to provide the best quality products at the best prices. We have made arrangement with alternative shipping companies and registered with state tax