Category: Illicit Trade

  • FDA, DOJ Grilled for ‘Unserious’ Action on Illegal Vapes

    FDA, DOJ Grilled for ‘Unserious’ Action on Illegal Vapes

    Photo: Katherine Welles

    U.S. Senators criticized top health and law enforcement officials for their failure to tame the rapidly growing illicit e-cigarette market, reports the Associated Press.

    During a hearing on June 12, lawmakers on the Senate Judiciary Committee questioned officials from the Food and Drug Administration and Department of Justice (DOJ) about attempts to manage the vaping market, which has grown to include thousands of flavored, unauthorized e-cigarettes imported from in China.

    To date, the agency has approved only a handful of e-cigarettes as alternatives for adult smokers. All other products on the market, including popular products like Juul, are pending review or considered illegal by regulators.

    “I simply do not understand how FDA and DOJ have permitted thousands of products to remain on store shelves when their manufacturers have not received authorization, or, in some cases, even filed an application,” said the committee’s chairman, Dick Durbin.

    Brian King, director of the FDA Center for Tobacco Products, said the agency has been slowed by a backlog of applications submitted by vape companies seeking approval to sell their products in the U.S. The FDA received millions of premarket tobacco product applications, each of which must be scientifically reviewed.

    An industry lobbyist told the committee that the FDA has created an untenable marketplace by rejecting more than 99 percent of applications submitted by companies.

    I simply do not understand how FDA and DOJ have permitted thousands of products to remain on store shelves when their manufacturers have not received authorization, or, in some cases, even filed an application.

    Ahead of the congressional hearing, several government agencies, including the FDA and the DOJ established a task force to better coordinate the fight against illegal e-cigarettes. Republican Senator Thom Tillis called the timing of the announcement “a political stunt,” and criticized the absence of other federal agencies from the initiative, including Customs and Border Protection (CBP).

    “If the timing of the task force formation wasn’t evidence of how unserious the FDA is about tackling the flood of illicit e-cigarettes, FDA’s exclusion of CBP from the task force makes it crystal clear,” said Tillis, who represents North Carolina, a major tobacco-producing state. He urged officials to concentrate enforcement on Chinese brands, rather than large domestic manufacturers like Reynolds American, which is based in North Carolina.

    The FDA can conduct investigations and recommend cases, but only the Justice Department can bring lawsuits. The FDA has sent hundreds of warning letters to vape shops and e-cigarette manufacturers in recent years. But the letters have done little to dissuade companies from flouting FDA rules and introducing new vapes.

    Disposable vapes account for an estimated 30 percent to 40 percent of the roughly $7 billion-dollar U.S. vaping market. The two best-selling disposables—Breeze and Elf Bar—generated more than $500 million in sales last year, according to Nielsen retail sales data analyzed by Goldman Sachs.

    Both brands have been sanctioned by FDA regulators but remain widely available, in some cases with new names, logos and flavors.

    King noted that products like Elf Bar cannot legally be sold in China because the government there has banned non-tobacco flavored e-cigarettes. Outraged that brands banned in China are sold in the U.S., Texas Senator John Cornyn vowed to introduce legislation to rectify that situation.

    Jefferies analyst Owen Bennett said the Congressional testimony could spur the FDA to approve more products from British American Tobacco and Juul. “This hearing is another example of increasing political pressure for the FDA to act” against unauthorized products, he said in a research note quoted by Bloomberg.

  • US FDA Updates ‘Red List’ for Illegal Vaping Products

    US FDA Updates ‘Red List’ for Illegal Vaping Products

    Credit: Eduardo Barraza

    The U.S. Food and Drug Administration updated its import alert on May 23, which includes a “red list” of manufacturers, distributors, and brands of vapor products that may be detained “without physical examination,” the agency announced.

    The alert authorizes U.S. Customs and Border Protection (CBP) to detain new tobacco products that do not have the required marketing authorization under the Federal Food, Drug and Cosmetic Act, which gives the FDA the authority to regulate all tobacco products.

    The full list of products now includes Chinese manufacturers and distributors as well as U.S. importers and distributors.

    The FDA announced last week that it is taking stronger enforcement actions against unauthorized e-cigarettes. The agency is seeking civil money penalties (CMP) against nine brick-and-mortar retailers and one online retailer for selling unauthorized Elf Bar brand vaping products. The FDA is seeking a penalty of more than $20,000 from each retailer.

    “In order to remove a firm’s product from the Red List, information should be provided to the agency to adequately demonstrate that the firm has resolved the conditions that gave rise to the appearance of the violation,” the FDA states. “The purpose of this is so that the Agency will have confidence that future shipments/entries will be in compliance with the Federal Food Drug and Cosmetic Act (FD&C Act).”

  • Singapore Police Seize $3.7 Million in Illegal Vapes

    Singapore Police Seize $3.7 Million in Illegal Vapes

    Credit: Sharaf Maksumov

    More than S$5 million ($3.7 million) worth of vape products were seized during a warehouse raid at Woodlands Industrial Park on Apr 24 in Singapore.

    It is the second-largest seizure of vaping products, coming a month after a record haul in March that was worth more than S$6 million.

    Officers from the Immigration & Checkpoints Authority (ICA) were conducting an enforcement operation when they found more than 400,000 vaping products and alerted the Health Sciences Authority (HSA), according to an ICA statement.

    Last year, Singapore authorities handled around 8,000 vaping-related offenses, a 43 percent jump from the 5,600 in 2022. A total of 7,600 offenses were recorded in 2021.

    From Jan. 1 to March 31 this year, more than 2,200 people were caught possessing and using vaping products.

  • Vietnam Taking Measures to Manage Illegal Vapes

    Vietnam Taking Measures to Manage Illegal Vapes

    Credit: Harvepino

    The Prime Minister of Vietnam, Pham Minh Chinh, has requested that authorities take various measures to manage the country’s illegal e-cigarette market.

    Chinh has requested that the Ministry of Health communicate more about the harmful impacts of e-cigarettes and propose solutions to restrict the market.

    The Ministry of Finance would instruct customs to manage the transportation of e-cigarettes through the border and to tackle smuggling, according to media reports.

    The Ministry of Industry and Trade needs to manage the domestic market and fine individuals and organizations that sell e-cigarettes.

    This move is strange because last month, the Ministry of Industry and Trade was assigned the task of presiding over and coordinating with ministries and ministerial-level agencies to develop appropriate regulations to manage the products.

  • U.S. Marshals Seize $700,000 in Unauthorized Vapes

    U.S. Marshals Seize $700,000 in Unauthorized Vapes

    Photo: APchanel

    The U.S. Marshals Service seized more than 45,000 unauthorized e-cigarette products valued at more than $700,000 in California. The seized products were mostly flavored, disposable e-cigarette products, including brands such as Puff Bar/Puff, Elf Bar/EB Design, Esco Bar, Kuz, Smok and Pixi.

    “FDA has been unequivocally clear that we are committed to using the full scope of our enforcement tools—including seizures—to hold those who peddle unauthorized e-cigarettes accountable,” said Brian King, director of the FDA’s Center for Tobacco Products, in a statement. “The writing is on the wall for those in the tobacco product supply chain who fail to heed the law.”

    This action represents the first time the U.S. Food and Drug Administration and the Department of Justice (DOJ) have seized tobacco products in coordination with the U.S. Marshals Service.

    The seizure initially targeted products being held and sold by MDM Group, a distributor doing business as Eliquidstop.com. FDA issued a warning letter to MDM Group in May 2023, for offering unauthorized, flavored e-cigarette products for sale or distribution. In January 2024, FDA conducted a follow-up inspection of the firm and determined that it continued to commercially market its illegal products. While conducting the seizure at MDM’s facility, the agencies were informed that several firms may have an ownership interest in the unauthorized e-cigarettes seized.

    As of April 2024, the FDA had issued approximately 670 warning letters to firms for manufacturing and/or distributing illegal e-cigarette products and issued more than 550 warning letters to retailers for the sale of unauthorized e-cigarettes. The agency has also filed civil money penalty complaints against more than 50 e-cigarette manufacturers and more than 100 retailers for manufacture and/or sale of unauthorized new tobacco products, as well as complaints for permanent injunction against seven e-cigarette manufacturers.

  • Australia: Over $1 Million in Illicit Nicotine Seized

    Australia: Over $1 Million in Illicit Nicotine Seized

    More than 30,000 vapes and tobacco products worth more than AUD 1 million ($650,000) have been seized by health authorities in a series of raids across Sydney.

    The major vaping blitz saw 60 retailers targeted throughout the city’s southeast last week.

    More than 30,000 e-cigarettes, 118,000 cigarettes, 45 kilograms of flavored and loose-leaf tobacco, and 284 containers of nicotine pouches were taken during the NSW Health and Therapeutic Goods Administration raids.

    The total street value of the seizures is over $1.1 million, NSW Health said.

    It takes the total value of illegal vapes and tobacco products seized across the state since July 2020 to $31.6 million.

  • UK Seized Nearly 10 Tons of Illegal Vapes Last Year

    UK Seized Nearly 10 Tons of Illegal Vapes Last Year

    Credit: Mary

    The number of illegal vapes seized at the border quadrupled last year as UK authorities wrestle with unlicensed imports amid a surge in youth vaping. More than 4.5 million vapes weighing nearly 10 tons were seized over the last 12 months, four times more than in 2022.

    The figures were released to the BBC after a Freedom of Information (FOI) request. The government is soon to announce new rules for the industry, including a possible ban on disposable vapes.

    Figures released to the BBC in response to an FOI request show that Border Force seized just 4,430 vapes in 2021, rising to 988,064 in 2022 and 4,537,689 from Jan. to Oct. 2023.

    Unlike legal vapes, illegal e-cigarettes are not registered with the Medicines and Healthcare Products Regulatory Agency and do not pass through quality control processes, so they may contain harmful chemicals. And retailers prepared to flout product rules may not be scrupulous about observing the ban on selling to under-18s

    A Home Office spokesperson said the government would “not tolerate the sale of illegal products and… harmful goods, such as illegal or counterfeit vapes”.

  • E-cigarette Smuggling Ring Uncovered in Finland

    E-cigarette Smuggling Ring Uncovered in Finland

    Photo: Kekyalyaynen

    Finnish Customs uncovered a substantial e-cigarette smuggling operation in Helsinki, according to The Helsinki Times. The operation involved illicit imports from China.

    Customs officers discovered a shipment of about 1,000 nicotine e-cigarettes during routine inspections at a courier terminal in Helsinki. The suspect had ordered about 1,600 e-cigarettes from China in 2023.

    Finland prohibits importation of vapes through “distant communication methods” like online orders. Penalties can range from fines to imprisonment plus paying back evaded taxes and illicit gains.

    Some people are unaware of the rules, however. “Not all those persons always know that it is illegal to order and distribute e-cigarettes,” said Marko Laitinen, investigation leader, referring to young people ordering e-cigarettes. “Once you get caught doing that, it always entails criminal liability.”

  • Russia Set to Criminalize Illegal E-liquid Trafficking

    Russia Set to Criminalize Illegal E-liquid Trafficking

    Photo: diy7

    Traffickers of illegal vape liquids could face up to seven years in prison in Russia if a proposal by the Committee of the Federation Council on Economic Policy becomes law, reports AIF.

    Lawmakers are concerned about the ingredients in illegal vapes, which evade regulatory scrutiny.

    Anatoly Vyborny, Deputy Chairman of the Committee on Security and Anti-Corruption, supported the provision, saying that the measure would help protect the health of young Russians.

    Currently, in Russia, there is no criminal liability for the illegal import of vaporizers and e-liquids.

  • Florida Thieves Snatch $700,000 in Vaping Products

    Florida Thieves Snatch $700,000 in Vaping Products

    Credit: Aleksandr Kondratov

    A city in the U.S. state of Florida has opened an investigation into the theft of a trailer that contained vaping materials valued at over $700,000.

    On August 14, while conducting a routine patrol of the area near 750 North University Drive, an police officer from the city of Coral Springs, Florida was flagged down by a man that claimed his semi-truck had been stolen, according to media reports.

    According to the incident report, the man said he had parked his semi-truck in front of Sam’s Club at 950 University Drive and then went home for the night. He returned the next day to find his trailer missing and his semi-truck parked in a different spot than he had left it.

    During an investigation into the man’s claims, police reviewed tow logs that confirmed the truck had not been towed and, upon closer inspection, discovered damage to the driver’s side lock.

    After reviewing video surveillance footage, investigators have identified a suspect wearing a backpack and a hat who moved the truck. Despite reviewing CCTV footage from all businesses in the plaza, officers have not yet found any leads.