Tag: news

Korea Claims Vaping Companies are Evading Taxes

Credit: Vitalii Vodolazskyi
E-cigarette companies have been evading taxes by declaring false nicotine content when importing liquid nicotine base into South Korea, according to one of the country’s lawmakers, reports The Pulse.
The accumulated tax evasion is estimated at several trillion won.
Between January 2020 and July 2023, 20,197 kg of liquid nicotine base was imported, according to documents from the Korea Electronic Liquid Association obtained by Lim Lee-ja of the ruling People Power Party. Approximately 3,300 bottles of e-liquid can be produced with 1 kg of liquid nicotine. Each bottle is levied at KRW53,970 ($40.60).
Many e-cigarette companies have been mis-declaring tobacco leaf nicotine as tobacco stem and root nicotine to evade taxes since 2016, according to the association. Under Korea’s tobacco laws, nicotine extracted from tobacco stems and roots is not classified as tobacco.
Data shows that e-cigarette companies changed their declarations from tobacco leaf nicotine to synthetic nicotine when Korea’s Individual Consumption Tax Act was amended in 2021 to impose taxes on all tobacco-derived nicotine. Synthetic nicotine is classified as a simple commodity and not subject to taxes.
The association stated that annual distribution volume of Korean e-cigarette liquid is 30 million 30 mL bottles, with an estimated annual tax evasion of KRW1.6 trillion.
In 2019, the Board of Audit and Inspection audited the Korea Customs Service, the Ministry of Environment and the Ministry of Health and Welfare, showing that all the inspected imported nicotine was tobacco leaf nicotine. Falsified declarations have continued since then, according to the association.
Lim has called on the government to crack down on companies falsely declaring their products.
Liquid nicotine base is considered a hazardous substance under the Chemical Substance Control Act, regulated by the Ministry of Environment. Imports must be reported to the minister of environment, and companies must obtain an import declaration certificate for hazardous substances.
Those caught failing to report or falsely reporting the import of hazardous substances are subject to up to one year of imprisonment and up to KRW30 million in fines. None of the companies shown to have falsely declared nicotine products in past audits have been punished to date.
September 8, 2023
CTP Launches Latest PMTA Resource Website

Credit: Suphakant
The U.S. Food and Drug Administration’s Center for Tobacco Products (CTP) has launched new resources to help applicants navigate the agency’s premarket tobacco product application (PMTA) process.
Specifically, CTP is offering a new webpage with more in-depth information on how to complete the three required PMTA forms to submit and amend pending applications.
Over the last few years, CTP has received more than 26 million PMTAs and made determinations on 99% of those applications.
Based on this experience and communications with applicants, CTP has developed the new online resources, which includes easy-to-access tips to help applicants submit in the future.
“These new online resources are part of CTP’s ongoing efforts to enhance the center’s efficiency, effectiveness, and transparency in response to recommendations from an independent external evaluation led by the Reagan-Udall Foundation,” a release states.
These latest resources build on tips CTP provided earlier this year for applicants preparing amendments to pending PMTAs.
September 7, 2023
Esco Bars Manufacturer Files Suit to Challenge FDA
Credit: Pastel Cartel
Pastel Cartel, the manufacturer of Esco Bars vaping devices, has submitted a legal complaint to the U.S. Federal District Court in the Western District of Texas.
The dispute is in regards to a U.S. Food and Drug Administration decision to reject over one hundred documents that Pastel Cartel had included in their premarket tobacco product applications (PMTAs), according to court records.
In the lawsuit, Pastel Cartel accuses the FDA of acting negligently and carelessly by issuing refusing to accept (RTA) letters for the company’s PMTAs on technical grounds.
The company is seeking:

A preliminary injunction staying the RTA orders until the case is decided;
A judgment finding the RTAs violate the Administrative Procedure Act (APA) and the U.S. Constitution (the Due Process Clause of the Fifth Amendment);
A final judgment setting aside the RTA orders and remanding the company’s PMTAs back to the FDA for further review.
Earlier this year, Shenzen Innokin Technology Co. Ltd., the producer of Esco Bars products, and Breeze Smoke, LLC who import and distribute Breeze products also received warning letters for manufacturing, distributing, and/or importing unauthorized tobacco products in the United States, according to the FDA.
September 7, 2023
Scotland Moves Forward on Ban of Disposable Vapes

Scotland could ban disposable vapes under plans unveiled by the country’s first minister.
Campaigners have highlighted the environmental impact of disposable vaping products, which are often thrown on the ground after being used.
Concerns have also been raised around their growing popularity among young people, according to media reports.
Humza Yousaf said his government would hold a consultation on a single-use vape ban as he set out his priorities for the coming year.
He told the Scottish Parliament he hears too often about how common vaping is among young people.
“In the next year we will take action to reduce vaping – particularly among children,” he said. “I’m pleased to announce that this government will consult on curbing the sale of disposable single-use vapes, including consulting on an outright ban.”
A recent Scottish government report found that 22% of all under-18s – around 78,000 – are believed to have used a vape last year with more young people using them than smoking cigarettes.
It found that most e-cigarette users under 18 prefer single use vapes.
The review by Zero Waste Scotland estimated that up to 2.7 million single-use vapes were littered in Scotland last year. The study estimated that there were 543,000 users of e-cigarettes in Scotland and predicted that without intervention that will rise to 900,000 by 2027.
SCotland joins several countries such as France that are considering a ban on disposables.
September 6, 2023
Indonesia Legalizes Vaping to Help Smokers Quit

The Indonesian Parliament recently passed Health Law No. 17 of 2023, which categorizes e-cigarettes as addictive substances, according to 2Firsts.
Teguh Basuki A Wibowo, chairman of the Indonesian Electronic Nicotine Industry Alliance, stated that including e-cigarettes in the legal framework for solid and liquid tobacco products legalizes industry participants and allows smokers to find alternative products.
The law puts Indonesia on equal footing with countries like the Philippines and the U.K., which have similar legislative frameworks for e-cigarettes, he said.
September 6, 2023
Bangladesh Considering Ban on All Vaping Products

Bangladesh is set to ban vapes and nicotine pouches, according to Filter.
The government has been considering a vape ban since 2019 when the U.S. e-cigarette or vaping product use-associated lung injury outbreak occurred—later determined to be caused by adulterated illicit products.
The health ministry has now drafted an amendment to Bangladesh’s Smoking and Using of Tobacco Products (Control) Act, which has been reviewed by the cabinet and must now be approved by parliament.
If the proposed ban is approved, anyone caught vaping, regardless of nicotine content, will be subject to a fine of BDT5,000 ($46). Sales, production, import, export, storage and transportation of vapes would also be banned, with penalties starting at a higher fine, three months’ incarceration or both. Larger scale activity or repeat offenses would face longer sentences.
The amendment would also ban flavors in tobacco products, increase the fine for smoking in public places and include further penalties for unlicensed tobacco sales.
Organizations like the Bangladesh Medical Association support the proposed ban, equating vaping with smoking cigarettes.
“A ban on vaping devices will have disastrous consequences for people trying to quit smoking cigarettes,” said Nafis Farhan, a member of Voice of Vapers Bangladesh. He attributed continued high smoking rates in the country to “limited availability of cessation tools, such as vapes.”
The proposed ban represents “a missed opportunity for harm reduction and a setback for public health,” according to Michael Landl, director of the World Vapers’ Alliance.
September 6, 2023
France to Ban Disposables to Prevent Youth Use

Photo: YarikL
France will ban disposable electronic cigarettes, according to a Reuters report citing comments by French Prime Minister Elisabeth Borne.
“It’s an important public health issue,” Borne said, noting that the government is putting together plans for a national program to fight tobacco usage.
Borne said “puff” devices create habits among youth that can lead to tobacco addiction.
Following a tobacco tax increase this year, the government does not plan to raise taxes next year.
Source:
September 5, 2023
UKVIA Separates Itself From Tobacco Firm Funding

British American Tobacco, Imperial Brands, Japan Tobacco International and Philip Morris International are no longer members of the UK Vaping Industry Association (UKVIA) the organization has announced.
In a statement from the UKVIA, the industry advocacy group states that it will no longer include any tobacco companies within its membership. It also will not be accepting any new applications for membership by vaping businesses wholly or part owned or acquired by tobacco companies moving forward.
The trade body states that “the interests of the industry would be best served by the association being independent of any involvement or funding from tobacco-owned vaping brands”.
It hopes to dispel “misconceptions” that the group is funded largely by tobacco companies and to overcome any potential restrictions tobacco companies may face when engaging with key stakeholders in the move to smokefree, according to media reports.
“In representing vaping-only businesses, many of which are independent firms founded on the back of personal loss of family members as a result of smoking combustible cigarettes, the UKVIA wants to be fully engaged with key stakeholders across the board as we have the same vision, which is to make smoking history,” the release states. “The association sees this as being a vital step in ensuring that the public health potential of vaping is fully realized and the sector making its fullest contribution to the delivery of the smoke free targets over the next few years to 2030.”
September 2, 2023
Attorneys General Want FDA to do More to Protect Youth

State of Michigan Attorney General Dana Nessel
The attorneys general for 33 states sent a letter to request the U.S. Food and Drug Administration do more to protect young people from e-cigarettes.
Michigan Attorney General Dana Nessel announced she signed a bi-partisan letter calling on the FDA to limit the e-cigarette flavors that draw kids in and protect them from marketing, according to media reports.
She also suggested that the FDA should require a limit on nicotine levels in e-cigarette cartridges and disposables, according to a press release.
“Nicotine use by our young people has reached epidemic levels,” Nessel said in the release. “We need impactful tobacco regulations that protect our youth from the dangers of e-cigarettes and marketing tactics that target them with products flavored to taste like fruit and candy.
“We must act to regulate young people’s exposure to these products and take robust enforcement actions against manufacturers, distributors and retailers who ignore the law.”
The letter is becoming a yearly occurrence. Last year, a bipartisan coalition of 31 attorneys general are calling on the FDA to reject marketing authorization for all non-tobacco nicotine products, which are currently being sold without regulation of their contents, manufacturing, health effects, required warning labels or marketing claims.
In the 2022 letter, the coalition argues that vaping products don’t meet the FDA’s public health standard, and the regulatory agency should not gamble on the unknown effects of the products, despite the FDA having authorized 23 vaping products.
The other attorneys general signing onto the 2023 letter are from the states of Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin.
September 1, 2023
Innokin Creates Partnership With Bahrain Duty Free

Credit: Innokin
Innokin, a leading vape brand since 2011, has announced its strategic partnership with Bahrain Duty Free, a prestigious retailer in the Middle East.
The collaboration will see the introduction of Innokin’s popular INNOBAR vaping products to Bahrain Duty Free’s premium stores, catering to the increasing demand for e-cigarettes in the region, according to a press release.
The new partnership began with a pilot project launched in April 2023. Within two weeks, the entirety of the trial stock had sold out.
“Building on this remarkable success, the collaboration has now expanded to provide customers with greater access to Innokin’s award-winning vaping solutions,” the release states. “Innokin’s INNOBAR devices, in particular, have garnered significant interest for their exceptional performance and flavors which are tailored to suit the preferences of the Bahrain market.”
Currently INNOBAR 3500, 6000 and V7000 models are available at Bahrain Duty Free locations. A key element of the partnership has been the knowledge-sharing and training provided by Innokin’s experts to the management of Bahrain Duty Free.
“We are thrilled about our partnership with Bahrain Duty Free. This collaboration signifies not only our dedication to the growing Middle East market but also our commitment to fostering responsible practices in the industry,” said George Xia, co-founder of Innokin. “With our decade-plus experience and the shared values of both organizations, we are confident that this partnership will set new standards of excellence for vaping.”
August 31, 2023