Vape industry says compliance burden forcing sellers to close

UP TO 20% of the domestic vape industry has shut down due to onerous government regulations, according to an industry representative.

Joey Dulay, President of the Philippine E-Cigarette Industry Association, told a forum on Wednesday that importers are more capable of complying with regulations than domestic companies.

“But we are pushing them to try and comply,” he added.

Under Republic Act No. 11900 or 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.

Mr. Dulay noted that many vape brands and manufacturers have yet to secure their Philippine Standard (PS) Quality and/or Safety Mark and Import Commodity Clearance Sticker from the DTI.

The PS mark ensures that products comply with the Philippine National Standards.

Despite the transition period, vape companies are still struggling to comply with regulations, Mr. Dulay said.

As of the end of August, the Bureau of Customs seized P6.5 billion worth of illegal vape products, mostly from China, Customs Intelligence Division Chief Leon P. Mogao told the forum.

Minimal Government Thinkers President Bienvenido S. Oplas, Jr. said that the government loses around P5 billion yearly from illicit vape products. However, this is expected to worsen amid the emergence of various forms of smuggling.

The government could lose around P10 billion in taxes every year due to vape smuggling, Mr. Oplas said via Viber. — Beatriz Marie D. Cruz