In a significant crackdown on illegal vape products, the Philippines Bureau of Customs (BOC) has seized 112,750 unregistered e-cigarette items at the Manila Port. The confiscated goods, valued at over PHP 95.7 million (approximately USD 1.7 million), were discovered during separate inspections on March 18, 2024. This operation underscores the Philippines’ commitment to enforcing vape regulations and combating the influx of unregistered and potentially harmful vapor products into the market.

The seizure highlights the growing challenges faced by regulators in controlling the e-cigarette industry, particularly the proliferation of unregistered and misdeclared goods. As the global vape market continues to expand, this incident serves as a stark reminder of the importance of compliance with local laws and regulations.

Details of the Seizure

First Batch: 46,600 Vape Products

During a routine inspection, BOC officials flagged a shipment declared as “plastic insulation materials.” Upon further examination, they discovered 233 cartons containing 46,600 e-cigarette products in various fruit-flavored vape options. The seized items, valued at PHP 23.3 million (approximately USD 410,000), were found to violate the Customs Modernization and Tariff Act (CMTA) and Republic Act (RA) 11900, which regulate the importation and sale of vape products in the Philippines.

The BOC issued a Pre-Lodgment Control Order (PLCO) for the shipment, leading to the confiscation of the goods. The total duties and taxes involved in this case amounted to PHP 30.2 million (approximately USD 530,000).

Second Batch: 66,150 Vape Products

In a separate operation, BOC officials inspected three additional shipments suspected of containing undeclared goods. Hidden inside boxes labeled as “thermos cups,” they uncovered 66,150 unregistered e-cigarette products. These items, valued at PHP 72.4 million (approximately USD 1.3 million), were also misdeclared to evade detection. The total duties and taxes involved in this seizure amounted to PHP 39.3 million (approximately USD 690,000).

Legal Violations

The seized shipments violated several key provisions of Philippine law, including:

• Section 1400 of the CMTA: Prohibits the importation of misdeclared or undeclared goods.
• Section 1113 of RA 11900: Regulates the sale, distribution, and importation of vape products to ensure compliance with safety and quality standards.

The Philippines‘ Stance on Vape Regulation

RA 11900: The Vape Law

The Philippines’ Vape Law (RA 11900), enacted in 2022, aims to regulate the manufacture, sale, and distribution of e-cigarettes and vapor products. Key provisions of the law include:

• Registration Requirements: All vape products must be registered with the appropriate regulatory bodies before being sold in the Philippines.
• Flavor Restrictions: The law prohibits the sale of fruit-flavored vapes and other flavors that may appeal to minors.
• Age Restrictions: The sale of vape products to individuals under the age of 18 is strictly prohibited.

Interagency Collaboration

The BOC’s seizure operation was conducted in coordination with other government agencies, including the Philippine Tobacco Authority, the Department of Trade and Industry (DTI), the Bureau of Internal Revenue (BIR), and the Philippine National Police (PNP). This collaborative effort highlights the government’s commitment to enforcing vape regulations and protecting public health.

Implications for the Vape Industry

Challenges for Importers and Manufacturers

The seizure of over 112,750 unregistered vape products serves as a warning to importers and manufacturers about the importance of compliance with local regulations. Key challenges include:

• Registration Requirements: Ensuring that all vape products are properly registered before importation.
• Accurate Declarations: Avoiding misdeclaration or undeclaration of goods to prevent seizures and penalties.
• Flavor Restrictions: Adhering to regulations on fruit-flavored vapes and other restricted flavors.

Opportunities for Compliance

For businesses that prioritize compliance, the Philippines’ regulatory environment presents opportunities to establish a strong presence in the market. By adhering to RA 11900 and other relevant laws, companies can build trust with consumers and regulators, positioning themselves as leaders in the legal vape market.

The Global Context: Rising Concerns Over Illegal Vapes

The Philippines’ seizure of unregistered vape products is part of a broader global trend. Countries worldwide are grappling with the influx of illegal and unregulated e-cigarettes, which often bypass safety and quality standards. Key issues include:

• Health Risks: Unregistered vape products may contain harmful substances or fail to meet safety standards, posing risks to consumers.
• Economic Impact: Illegal vapes undermine the legal market, depriving governments of tax revenue and creating unfair competition for compliant businesses.
• Youth Access: Unregulated products are more likely to be sold to minors, exacerbating concerns about youth vaping.

Recommendations for Vape Businesses

1. Ensure Compliance with Local Laws

Businesses must familiarize themselves with the vape regulations in each market they operate in. This includes registration requirements, flavor restrictions, and age verification protocols.

2. Partner with Reputable Distributors

Working with trusted distributors can help ensure that vape products are imported and sold in compliance with local laws.

3. Educate Consumers

Educating consumers about the risks of illegal vapes and the benefits of purchasing registered products can help drive demand for compliant goods.

4. Monitor Regulatory Developments

The vape industry is subject to frequent regulatory changes. Businesses must stay informed about new laws and guidelines to remain compliant.