First Tennessee Vapor Shipping Reports Due May 10

Tennessee has announced the starting date for its PACT Act requirements. The state’s Department of Revenue states that beginning May 10, 2021, and the 10th of every month thereafter, any entity shipping electronic nicotine-delivery systems (ENDS) or related products into Tennessee from another state is required to report all such shipments to the department.

It is expected that all states will require PACT Act reporting to begin on May 10. Effective March 28th, 2021, recipients of all vaping products purchased online will be required to present ID and sign for their delivery. The United States Postal Service mail ban on vaping products will go into effect on April 27th, 2021. After this date, customers will no longer be able to receive vaping products by way of USPS delivery.

The amended PACT Act provides that any person who sells, transfers, or ships for profit ENDS in interstate commerce, or who advertises such products for sale, must register with the tobacco tax administrator of the state into which the shipment is made. The company must also file monthly reports with the tobacco tax administrator no later than the 10th day
of each month.

Under the PACT Act, a delivery seller faces violations that may result in civil penalties of up to
$5,000 for the first violation, $10,000 for the second violation, or 2percent of the gross sales during the prior 12 months. Additionally, there are penalties for common carriers or other persons providing delivery services of up to $2,500 for a first violation or $5,000 for any other violation within one year of a prior violation.