Tag: Philippines

Philippine Raids Net Multiple Illicit Vape Sellers

Nationwide raids in the Philippines uncovered illicit seller 408 sellers vape products, whose operations are unregistered or whose products do not carry the appropriate revenue stamps, reports Business World.
illicit retailers and resellers were found not only in metropolitan Manilla, but also in other places, including Ilocos Sur, Pangasinan and Benguet.
Beginning June 1, the BIR required all vape manufacturers and sellers to affix internal revenue stamps on their products to indicate tax compliance.
Republic Act 11900 instructs the Bureau of Internal Revenue (BIR) to order the immediate recall, ban or seizure from public sale or distribution of vaporized nicotine and non-nicotine products or novel tobacco products not registered with the BIR, including those sold online.
The BIR intends to conduct regulator raids on illegal vape sellers. “I have ordered weekly raids against illicit vape retailers, wherever they may be found,” said BIR Commissioner Romeo D. Lumagui Jr.
In the first half of the year, the BIR estimated foregone revenue of around PHP7.2 billion ($124.47 million) from seized vape and tobacco products.
October 22, 2024
Philippines Urged to Regulate Flavors in Nicotine

Photo: Borgwaldt Flavors
Researchers urged the Philippine government to regulate flavored tobacco and mandate plain packaging, citing the country’s obligation as a signatory to the World Health Organization Framework Convention on Tobacco Control, reports The Manila Times.
“Historically, tobacco companies have used flavoring agents to enhance the appeal of tobacco consumption, encourage initiation and experimentation of tobacco use, and sustain tobacco use,” researchers of the Ateneo de Manila University were quoted as saying.
“However, the Philippines currently does not regulate flavored tobacco products, despite the increasing market shares of flavored tobacco products and novel technologies, such as crushable capsules.”
In a recent study of 106 cigarette and cigar products, only 62 turned out to have flavor descriptors.
October 17, 2024
Regulations Decimate Philippine Vape Sector

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Onerous government regulations have forced about one-fifth of Philippine vaping companies out of business, according to Philippine E-Cigarette Industry Association President Joey Dulay. Importers, he added, have found it easier to comply than their domestic counterparts.
“But we are pushing them to try and comply,” Dulay was quoted as saying by Business World.
Under the Vaporized Nicotine and Non-Nicotine Products Regulation Act, manufacturers or importers must register their products and secure licenses to operate.
They are also required to adhere to packaging standards and pay duties and taxes.
Manufacturers, distributors and importers were given an 18-month transition period to comply with the regulations laid down in the vape law.
Dulay noted that many vape brands and manufacturers have yet to secure their Philippine standard quality and/or safety mark and import commodity clearance sticker.
By the end of August, the Bureau of Customs had confiscated PHP6.5 billion ($115.21 million) worth of illegal vape products, mostly from China.
The government is estimated to miss around PHP5 billion yearly from illicit vape products.
October 3, 2024
Philippines Bans 5 Vaping Products for Violations

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The Department of Trade and Industry (DTI) in the Philippines on Saturday said it removed five vape brands from shelves pending an investigation into alleged violations of the law.
The DTI identified the brands Shft, Dr. Freeze, Areogin, Don Bars and Chillax as the subjects under the order.
“The trade suspension, effective immediately, is in accordance with section 11 of Executive Order No. 913 (1983) and will remain in place pending resolution of the formal charges,” the DTI said in a statement.
The government agency cited that the trade suspension was in response to the formal charges filed against the said brands for violating Section 4(d) of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act.
In addition to the trade suspension, the DTI said it has suspended the Philippine Standard licenses for the same brands.
September 9, 2024
Top Court Upholds Philippines FDA Vapes Authority

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The Supreme Court of the Philippines upheld its 2021 decision to grant the country’s Food and Drug Administration regulatory authority over the health aspects of tobacco products, reports the Inquirer.
“All products affecting health, including tobacco products, are covered by the FDA’s mandate to ensure the safety, efficacy, purity, and quality of health products,” the Supreme Court said.
“Thus, the inclusion of tobacco products in the implementing rules of the FDA Act is in accordance with the law,” it added.
The case stemmed from an attempt to stop the enforcement of the FDA implementing rules and regulations. In a case filed in 2011 before the Regional Trial Court of Las Pinas City, the Philippine Tobacco Institute (PTI) alleged that those rules improperly expanded Republic Act No. 9711 by classifying tobacco products as health products.
The PTI argued that under the Tobacco Regulation Act of 2003, the Inter-Agency Committee on Tobacco (IACT) had exclusive jurisdiction over tobacco products.
In 2012, the Las Pinas court ruled in favor of PTI and nullified the provisions of the FDA implementing rules and regulations relating to tobacco.
The Department of Health and the FDA then petitioned the Supreme Court for review, which overturned the Las Pinas court decision in 2021. The PTI then challenged the high tribunal’s ruling, but was rebuffed.
The denial of the motions for consideration means the IACT and the FDA will continue to share authority over tobacco, with each overseeing different aspects of the trade.
Under the Tobacco Regulation Act, the IACT is chaired by the trade secretary with the health secretary as vice chair and includes a representative of the tobacco industry as a member. The PTI previously held the position of representing the tobacco industry in the committee.
July 31, 2024
CAPHRA Applauds Philippine’s Vaping Measures

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The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) stated that it extends its full support to the Government of the Philippines Department of Trade and Industry (DTI) in their efforts to protect consumers and prevent youth access to vaping products.
However, instead of ending online sales CAPHRA advocates for greater enforcement of existing laws to prevent youth access to vaping products and ensure the appropriate collection of taxes. The Department of Trade and Industry (DTI) recently suspended the online sale of vape products, citing concerns about youth access and tax evasion.
“While the intention behind the suspension is commendable, CAPHRA believes that a more effective approach would be to enhance enforcement measures rather than imposing outright bans that could inadvertently drive consumers back to more harmful combustible tobacco products,” stated Clarisse Virgino, a leading tobacco harm reduction expert from the Philippines and member of CAPHRA.
“CAPHRA supports the government’s efforts to crack down on illegal sales to minors and urges for increased penalties and surveillance to ensure compliance, under the existing Vape Law, or Republic Act No. 11900.”
CAPHRA is aware that too many importers and retailers are failing to register for and pay the appropriate taxes, leading to significant revenue losses for the government.
“With appropriate enforcement of internal revenue stamps for vape products by the Bureau of Internal Revenue, these concerns can be overcome,” Virgino stated in an emailed release. “We need to ensure that all vape products in the market are properly taxed and that violators face strict penalties.”
July 22, 2024
Philippines Ends Online Sales of Vape Products

Photo: Ranta Images
The Philippine government has halted the sale, advertising and distribution of vape products online, reports the Inquirer.
“This is a temporary suspension until the e-marketplaces are able to convince us of their compliance with their obligations under Republic Act No. 11900, or the vape law, and other laws and related issuances,” said Trade Secretary Alfredo Pascual on July 19.
According to Pascual, the order was prompted primarily by the need to prevent the sale of vape products to minors and ensure that those being sold online meet the safety standards set by law.
Vape companies and online sales platforms must submit a sworn certification of their compliance with the law to be allowed to resume sales.
A recent investigation by the Department of Trade (DTI) and Industry of 90,000 companies engaged in the vape business revealed that 284 had violated for various laws, by selling vapes within 100 meters of a school or using flavors designed to appeal to minors, for example.
The DTI has confiscated at least PHP32.76 million ($561,454.25 ) worth of vape products so far this year, mostly for being offered for sale without proper certifications, like the Philippine Standard mark and the Import Commodity Clearance sticker.
In June, the department ordered the mandatory certification of vape products in compliance with the Vape Act, which lapsed into law in July 2022.
July 21, 2024
Philippines: New Vape Rules to Begin in June
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The new Vape Law in the Philippines will take effect on June 1. The new rules also apply to all next-generation tobacco products, including heat-not-burn and e-cigarettes. The Department of Trade and Industry (DTI) will require all vape products to be registered with the agency on that date, an official said on Tuesday.
At a forum organized by the Bantay Konsumer, Kalsada, Kuryente (BK3) in Makati, DTI Undersecretary Amanda Nograles said the “importation and manufacturing of vaporized nicotine and non-nicotine products and novel tobacco products must now undergo the DTI certification process.”
This means that products must have the Philippine Standard (PS) mark and Import Commodity Clearance (ICC) sticker first before they can be sold on the market.
Nograles said at least 3 companies have already applied for registration, and they urge others to begin the process since the registration may take some time. She clarified that there will be a 6-month transition period to allow all firms to comply.
“We will allow them to sell all the existing inventory. On January 5, 2025, we will do market clearing. There should be no vape products without a PS license and ICC [sticker],” Nograles said, adding that the agency will continue to monitor shops to ensure that no minors will be allowed to buy vape products. They will also check if the vape has marijuana oil.
May 29, 2024
Philippines: Momentum Building for Disposables Ban

Photo: Mihail Reschetnikov
Momentum is building in the Philippines for a proposal by Finance Secretary Ralph Recto to ban disposable e-cigarettes, reports The Philippine Star.
The Department of Health has indicated support for the proposal, just like some senators, but the Department of Trade and Industry, which enforces the country’s vape law, has yet to take a stand.
Eric Singson, mayor of Candon in the tobacco-producing Ilocos Sur province in Northern Luzon, said he was open to the idea. “If it is really hazardous to a person’s health, then it’s OK with me, we will subscribe to regulation, just like the Tobacco Regulation Act,” he said.
Both the Department of Agriculture and National Tobacco Administration have yet to communicate their respective positions.
Several countries in Europe including the United Kingdom, Ireland and Belgium have announced disposable vape bans.
“If that is the trend, then maybe there is a very good reason for banning it. If it’s something of a health concern to the users, especially the minors, then I’m open to it,” Singson told The Philippine Star in an interview in.
In Asia, disposable vapes are already banned in Singapore, Thailand and Taiwan.
Recto proposed the ban in response to the rise in youth vaping and the impact of disposable products on the environment, with illicit e-cigarettes further eroding tax revenues.
April 19, 2024
Flava Pulled From Philippine Shelves for Tax Evasion

Credit: Adobe Photo
Flava brand vaping products have been pulled from store shelves in the Philippines amid allegations of illegal marketing to minors and tax evasion, the Department of Trade and Industry has said.
The DTI’s Fair Trade Enforcement Bureau (FTEB) on March 15 ordered Flava Corporation, Lilac’s Vape Shop, and social media influencer Lilac Sison Tayaban, CEO of Flava, to refrain from manufacturing, importing, selling, packaging and distributing imported Flava vapes, according to media reports.
Once the Sampaloc, Manila-based business receives the preliminary order issued by DTI-FTEB, all of Flava’s commercial activities must immediately stop.
Flava was the respondent to formal charges alleging violations of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, filed before the DTI-FTEB on March 14.
In turn, the DTI-FTEB gave the preliminary order to confiscate Flava products that violate RA 11900, to prevent the disposition or tampering of evidence and the continuation of the acts being complained of.
The DTI is the lead implementing and enforcement agency of RA 11900, the landmark law aimed at protecting minors from vaping. The House Ways and Means Committee earlier estimated as much as P728 million ($1.3 million) in foregone tax revenues from the alleged technical smuggling of P1.4 billion worth of illicit Flava devices last year.
After laboratory testing, The House panel discovered that Flava had not declared the vapes it imported from China. Flava allegedly mislabeled its ingredient as freebase nicotine, which has a lower excise tax than nicotine salt — the nicotine used in Flava products.
Also, the House committee discovered Flava’s aggressive marketing of its flavored vapes to minors, most especially on social media—a violation of RA 11900. Last week, Bureau of Internal Revenue commissioner Romeo Lumagui Jr. disclosed that the taxman seized 1,029 master boxes of Flava vapes from a warehouse in San Pablo City, Laguna, with tax deficiencies totaling P75.7 million.
The BIR raid conducted together with the Laguna provincial field unit of the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) also led to the arrest of two individuals manning the warehouse.
As such, the BIR will file criminal tax evasion charges against Flava.
“This successful raid of a vape warehouse containing 102,900 bottles of Flava vape products will be one of many. The BIR supports the whole of the government’s approach to eradicating illicit vape products. We have warned you as early as 2022. Our raids are successful. We won the criminal cases. You already have pending warrants of arrest. Register and pay your proper taxes, or suffer the consequences,” Lumagui said.
Meanwhile, Consumer Protection Group spokesperson, Trade Assistant Secretary Amanda Nograles said they will check the report of the Philippine Drug Enforcement Agency that marijuana-laced electronic cigarettes or vapes are now proliferating in the market.
“That report alarms us, especially when these will be sold to minors. Since the information was just new, then we will get additional information. But the DTI will continue to confiscate vape products with flavor descriptors and have cartoon characters that are appealing to minors, and products that use influencers,” Nograles said in a radio interview.
She said if the DTI encountered or confiscated vapes with marijuana oil, then they would refer it to the PDEA.
On Thursday PDEA operatives seized cannabis oil and ‘kush’, and assorted vaping devices, with an estimated total value of P842,000 in simultaneous raids in Taguig City.
March 18, 2024