Category: Illicit Trade

Massachusetts Reports Rise in Illicit E-Cig Smuggling
Massachusetts law enforcement officials have reported seizing a sizable amount of banned and untaxed vaping products linked to cross-border smuggling last year. According to a new report by the Multi-Agency Illegal Tobacco Task Force, more than 213,000 electronic nicotine delivery system (ENDS) products were seized by state police and members of the task force in 2021.
“Inspectors and investigators are routinely encountering or seizing menthol cigarettes, originally purchased in surrounding states, and flavored electronic nicotine delivery products and cigars purchased from unlicensed distributors operating both within and outside the commonwealth,” the report states.
The seizures of vaping products dwarfed those of untaxed cigarettes, cigars and smokeless tobacco products by law enforcement agencies, according to news reports. Massachusetts banned the sale of flavored cigarettes and vaping products more than two years ago, but those products are still getting into the state through the blackmarket. The law imposed a 75 percent excise tax the wholesale cost of vaping products.
Credit: Yurii Kibalnik
The task force, which is overseen by the Department of Revenue, has partnered with federal officials to dismantle major cross-border smuggling operations and recover millions of dollars in unpaid tobacco and vaping product excise taxes. Under the new law, anyone caught bringing untaxed e-cigarettes or vaping products into the state can be fined $5,000 for a first offense and up to $25,000 for multiple violations.
The provisions also allow police to seize untaxed vaping products as well as vehicles, boats and airplanes. The state collected more than $370 million in cigarette taxes alone in its last budget year, a 23 percent decline over the previous fiscal year, according to the Department of Revenue. The stae collected more than $13 million in taxes on vaping products.
While many anti-nicotine groups have praised Massachusetts’ ban of flavored tobacco products, the ban is not the success its proponents make it out to be, according to Ulrik Boesen of the Tax Foundation. While a study published in JAMA Internal Medicine found that the sale of flavored tobacco in Massachusetts decreased more than in 27 control states in the wake of the state ban, the authors failed to consider the impact of cross-border trade.
According to Boesen, increased sales in neighboring New Hampshire and Rhode Island almost completely made up for the decrease in Massachusetts. “The end result of the ban, in fact, is that Massachusetts is stuck with the societal costs associated with consumption, while the revenue from taxing flavored tobacco products is being raised in neighboring states,” Boesen wrote on the Tax Foundation’s website.
March 3, 2022
Australia: More than $2 Million Worth of Vape Pens Seized
Credit: Belyay
Australian authorities have seized tens of thousands of nicotine vapes illegally being sold in the country over the past 18 months. Between July 2020 and December 2021, the New South Wales Department of Health seized more than 100,000 illegal vaping products, with a street value of more than $2 million.
Since October, Australian vapers have been required to obtain a doctor’s prescription for nicotine-containing e-cigarettes and liquids. Doctors are supposed to prescribe the products only as a last resort when more proven quit treatments fail. The law changes were prompted by concerns about the health impacts of vaping, and data showing children are increasingly using the products.
Over the past year, local public health units had been springing convenience stores, petrol stations and tobacconists who were selling vapes to children, enlisting undercover teenagers to attempt to purchase the products, according to news reports.
Consumers who fail to include a nicotine prescription with their order will be subject to a fine of up to $222,000. The new system will work if enough doctors, pharmacists, smokers and vapers are willing to comply and are provided with sufficient information.
February 14, 2022
Inquiry Shows Extent of Illicit Vapor Market in Liverpool
An inquiry into the extent of the illicit vaping and e-cigarette products market has revealed the scale of Liverpool, England’s growing black market. City council trading standards officers found large numbers of retailers in the city selling illegal vaping products.
Credit: SYCprod
Vaping devices are highly regulated by the government to control the amount of nicotine available and have to be approved by the Medicines and Healthcare Regulatory Agency (MHRA), according to a story in Liverpool’s Echo newspaper. The devices should contain no more than 2 percent nicotine or hold more than two millilitres of liquid, equivalent to 600 puffs or a packet of cigarettes.
However, in a recent test purchasing exercise across the city to check on compliance, officers were able to buy illegal products at 74 retailers – some containing up to 3,500 puffs, almost six times above the legal limit. Now council is offering the retail trade the opportunity to contact Trading Standards for advice on their products with the proviso that compliance visits will be carried out in the New Year and any illegal products still on sale will be seized.
The council have also been receiving a large number of complaints over the sale of these products to children and is asking parents with information and evidence to contact them. Councilor Abdul Qadir, cabinet member for Neighborhoods, said: “E-cigarettes and vaping products are seen by many people as a way of giving up smoking.”
January 5, 2022
UK Retailers Being Warned About Illegal E-Cigarettes
The UK government officials are warning e-cigarette and vaping retailers after trading officers discover a large number of illegal products. Vaping devices are highly regulated by the government to control the amount of nicotine available and have to be approved by the Medicines and Healthcare Regulatory Agency (MHRA).
“They should contain no more than 2 per cent nicotine or hold more than two mL of liquid, equivalent to 600 puffs or a packet of cigarettes, according to a news report. “However, in a recent test purchasing exercise across the city to check on compliance, officers were able to buy illegal products at 74 retailers – some containing up to 3,500 puffs, almost six times above the legal limit.”
Officials are now offering retailers the opportunity to contact Trading Standards for advice on their products with the proviso that compliance visits will be carried out in the New Year and any illegal products still on sale will be seized. The council have also been receiving a large number of complaints over the sale of these products to children and is asking parents with information and evidence to contact them.
More information and an online form is available at https://liverpool.gov.uk/business/trading-standards/alcohol-and-tobacco-illegal-trading/ or you can email trading.standards@liverpool.gov.uk
December 27, 2021
Juul Labs Sues Reeha for Trademark Infringement
JUUL Labs, Inc filed a suit against defendant Reeha LLC in the District of Connecticut alleging trademark infringement and unfair trading practices on their vaping products for purportedly selling counterfeit JUUL products, according to lawstreetmedia.
The complaint, filed Dec. 15, states that “wrongdoers have counterfeited JUUL products by illegally manufacturing, selling and distributing fake, copied, and non-genuine versions of JUUL products and related packaging bearing JUUL trademarks.”
Allegedly the defendant did not have JUUL’s “authorization to produce, manufacture, distribute, market, offer for sale, and/or sell merchandise bearing the JUUL marks.” The plaintiff also claims that the defendant hurt the JUUL brand by selling lower quality products to unsuspecting customers who believed these to be true JUUL products.
Reeha allegedly used the trademarked words “JUULpods” in some of their products as well as the plaintiff’s company name “JUUL.”
The Juul contends that Reeha sold “unlawful Grey Market Goods,” which are only meant to be sold in foreign markets because they do not comply with U.S. regulation. According to the complaint, this became more obvious to the plaintiff when it looked at some of these counterfeit products that contained foreign language warnings on them, which are never found on JUUL products legally sold in the United States.
According to the plaintiff, it sent a cease-and-desist letter to the defendant to end the sales of the “unlawful Grey Market Goods,” yet the sales continued after the letter had been sent to the defendant.
The defendant is facing six counts, including trademark infringement – counterfeit goods, false designation of origin, unfair competition, trademark infringement – grey market goods, statutory unfair trade practices and common law unfair competition.
December 19, 2021
Australia Cracks Down on Unlawful Vaping Imports

Photo: sezerozger
Australia’s Therapeutic Goods Administration (TGA) has fined four individuals and companies more than AUD170,000 ($122,740) for unlawfully advertising or importing vaping products, reports The Guardian.
Since October, Australian vapers have been required to obtain a doctor’s prescription for nicotine-containing e-cigarettes and liquids. Doctors are supposed to prescribe the products only as a last resort when more proven quit treatments fail. The law changes were prompted by concerns about the health impacts of vaping, and data showing children are increasingly using the products.
In response to the new rules, companies have set up websites offering to link vapers to a health practitioner authorized to prescribe the products. But the law allows only pharmacies and pharmacy-marketing groups to advertise in a limited way. Non-pharmacy websites that advertise vaping products or links to online suppliers are likely to be noncompliant with the nicotine advertising permissions.
The fined companies are Mason Online, RV Global Ecommerce, Vapespot and a Melbourne-based individual.
Maurice Swanson, chief executive of the Australian Council on Smoking and Health, said he was pleased with the TGA’s actions.
“We welcome the strong monitoring of illegal advertising which doesn’t meet the guidance provided by the TGA,” he said. “The TGA’s advertising guidelines have been well-known and well-promoted, so companies can’t claim not to have known about it.”
November 23, 2021
Singapore Seizes $2 Million in Illegal Vape Pens
More than $2 million worth of vaporizers, components, e-liquids and other illegal tobacco products have been seized in Singapore. Authorities are calling the discovery the “largest haul” in the city-state to date.
Credit: Richie Chan
Acting on a tip-off, officers from the Health Sciences Authority (HSA) inspected an industrial storage facility located north, towards the border with Malaysia. They discovered 10,057 vapes, 48,822 vaporizer components, and large quantities of vape juice, according to a press release.
“This is the largest seizure haul of tobacco products by HSA, in terms of the volume and street value of e-vaporizers,” officials said in a statement, adding that the products had an estimated street value of $2,260,825. No arrests have been made but HSA said that three people were currently “assisting in investigations.” The authority also revealed that more than 170 vape raids were carried out between 2018 and 2020.
October 25, 2021
Australian Crackdown on Nicotine Imports Starts Today
Beginning today, the importation of nicotine e-liquids will be closely monitored by the Australian Border Force. Currently Australians can import nicotine liquid for vaping from overseas or purchase it from a small number of participating pharmacies, provided they have a valid doctor’s prescription.
Credit: Belyay
Consumers who fail to include a nicotine prescription with their order will be subject to a fine of up to $222,000. The new system will work if enough doctors, pharmacists, smokers and vapers are willing to comply and are provided with sufficient information, according to the Sydney Morning Herald. The article reports that very few are interested in complying with the rules and most are poorly informed. Little effort has been made to disseminate information about the new arrangements.
More than 2.5 million Australians still smoke. The National Drug Strategy Household Survey estimated that the number of Australians vaping was 240,000 in 2016 and 520,000 in 2019. If the number of Australians vaping is still increasing, as many as 600,000 may be vaping now, according to the article.
At present, only a very small number of people vaping have a prescription as is required. Most nicotine supplies are imported without a prescription or purchased from the black market. If compliance with the new arrangements is poor, then some will return to smoking while others will purchase supplies from the black market. Neither are good outcomes.
October 1, 2021
Calls for Action Against Noncompliant Products

Photo: auremar
The U.K. Vaping Industry Association (UKVIA) is calling for tough action against resellers of noncompliant disposable vape products.
During an investigation, the trade group found that there are significant numbers of noncompliant products entering the U.K. and being sold in particular by convenience shops and on major online marketplaces.
“We are calling upon regulators and the online marketplaces to robustly enforce current regulations and do much more in order to ‘clean up’ the disposable vapes market,” said John Dunne, director general at the UKVIA, in a statement.
The disposable vape sector has enjoyed a significant revival in recent years, appealing as an entry point for adult smokers looking to quit conventional cigarettes. However, an investigation by the UKVIA has identified that illegal products are re-entering the U.K. market. The problem, according to the group, lies with some distributors who are flouting U.K. regulations and managing to get these products imported into the country and sell them onto traders and retailers; as well as a lack of proper scrutiny on major online marketplaces.
Disposable vapes are pre-filled with e-liquids and cost around £6 ($8.27) each. U.K. regulations stipulate that they should contain no more than 20mg/ml of nicotine, yet evidence collected by the UKVIA reveals that some listed as this amount contain higher concentrations of nicotine and some products are being openly sold with 50mg/ml strength. Furthermore, product packaging is often missing warnings about the nicotine content, which is a legal requirement.
The UKVIA has been in discussions with the Medicines & Healthcare Products Regulatory Agency (MHRA), which regulates vape products and trading standards, to address the situation. In a major crackdown on unscrupulous suppliers, the association is providing guidance on official distributors and disposable vape products to its members as well as looking at the idea of licensing vape shops to fund enforcement. It’s also working with manufacturers of disposable vapes to ensure they are doing all that is possible to monitor and audit their distributors.
“Robust enforcement of the current regulations is the only answer and it’s needed now,” said Dunne. “We can provide support to the regulators and educate the industry on how to distinguish between what’s a compliant product or not; and we are in the process of doing this. However, we are not in a position to come down heavy on those breaking the law; that lies with the regulators.
“The vaping sector’s reputation, that the industry has taken years to build up, and which has made it one of the most successful business markets in the 21st century to date, is being threatened by a minority intent on making a quick buck out of a popular product, and we will not stand back and just watch it happen. Disposables have a major role to play in the vape market, but like all products they need to adhere to the legislation.”
September 7, 2021
Taiwan Police Arrest 5 for Illegal Cannabis Vape Products
Credit: NTCDH
In a stern reminder to its citizens that vaping and cannabis products are illegal, Taiwan law enforcement and health officials arrested five people in the city of Taipei last week. Taipei police stated that they had broken up a criminal organization, whose members have been accused of selling vaping products containing cannabis extracts, according to the Taipei Times.
“After surveilling the premises for several days, police officers carried out a raid at a motel in Taipei’s Wanhua District last week, in which 94 vaping cartridges and 23 pouches of unknown powdered material were seized,” the story states. “Preliminary lab testing revealed that the cartridges contained cannabidiol (CBD) and tetrahydrocannabinol (THC), the main active ingredients in cannabis. The pouches contained ketamine, which is a controlled substance.”
A 25-year-old woman allegedly led the criminal ring. One modified handgun, 11 bullets and an undisclosed amount of cash were also seized. Investigators said that Liu’s group had been selling the vaping cartridge oil for the past year and has profited an estimated NT$10 million ($359,544) in illegal proceeds.
The suspects face charges of contravening the Narcotics Hazard Prevention Act and for possession of illegal firearms in contravention of the Controlling Guns, Ammunition and Knives Act. Ring members allegedly promoted their products to youth via social media and online platforms.
The CBD and THC oil were branded as “Cookies,” “Sherbet,” “Dream,” “Skywalker” and other names. Officials at the Ministry of Health and Welfare yesterday said that e-cigarette and related vaping devices have not been approved in Taiwan, and their use therefore is illegal, regardless of their contents.
CBD in pharmaceutical products has received approval for medicinal use in Taiwan, when prescribed by a physician and the request is approved by authorities. However, general sale of CBD is not permitted. Such products can contain THC at less than 10 parts per million, but would otherwise be scheduled as a Class 2 illegal drug, officials said.
August 31, 2021