NACS Requests USTR Address Illicit Vapes

NACS this week submitted a comment letter to the Office of the United States Trade Representative (USTR) in a trade proceeding examining unfair trade practices worldwide. The comment focuses on illicit nicotine products produced in China and shipped to the United States in violation of U.S. law.

The U.S. electronic nicotine delivery systems (ENDS) market has become dominated by illicit products, primarily disposable e-cigarettes manufactured in China and sold without the marketing authorization required by the U.S. Food and Drug Administration (FDA). These products remain widely available despite being unlawful to sell, with some estimates suggesting more than 80% of the ENDS market consists of illicit products.

“The export of these products into the United States creates health threats for Americans, including children, and hurts the financial viability of legitimate U.S. businesses including retailers, suppliers and manufacturers. … the sale of these products into the United States creates national security risks. We strongly urge the USTR to help lead a whole-of-government approach to eradicating this dangerous, illicit market,” NACS wrote in the letter.

This illicit supply imposes direct and ongoing harm across the supply chain, including law-abiding retailers. Stores that comply with regulations lose sales to competitors willing to sell unauthorized products. As a result, compliant retailers not only lose ENDS sales but also lose associated purchases of fuel, food and other convenience items.

NACS requests that USTR, in connection with this investigation and related bilateral engagements, seek a binding and enforceable commitment from the People’s Republic of China (PRC) that:

• Requires the PRC, including the State Tobacco Monopoly Administration and other authorities, to implement and maintain effective controls preventing the export of e-cigarette products to the United States without FDA marketing authorization;
• Ensures meaningful enforcement of existing export rules requiring e-cigarette products to comply with destination market regulations, including those of the United States;
• Ensures exports are correctly classified with proper Harmonized Tariff Schedule (HTS) codes, declared value and country of origin; and
• Establishes transparent, verifiable obligations with objective benchmarks and ongoing oversight mechanisms to confirm compliance.