WHAT DOES THE PACT ACT MEAN FOR VAPERS & THE VAPING INDUSTRY?
UPS will not be shipping vaping products after April 5, 2021. This information has come down from a source associated with the organization. As it currently stands, no major shipping carrier will deliver vape products to consumers after this April. Fedex has made it known that they will not be shipping vapes after March 1, 2021 and DHL has already banned shipping vapes domestically. According to the omnibus stimulus bill signed in late December 2020, USPS has 120 days to create and make the public aware of it’s policy for shipping vaping products which gives online retailers until about late April to continue shipping products using USPS.
Short for “Prevent All Cigarette Trafficking”, the PACT Act is also known as the Jenkins Act. It is due to come into effect for all vaping products in March 2021, which will change how things work for all involved in the vaping industry, from buyers and sellers right down to the carriers who ship these products. What exactly will change, and how will it affect vapers? We lay it out for you in this article.
Under the PACT Act, all retailers of vaping products must comply with the following terms:
- Verify customers’ age through a commercially available database.
- Register with the Attorney General of the United States under the Bureau of Alcohol, Tobacco and Firearms and Explosives (ATF) as well as with tobacco tax administrators in their state.
- Collect all applicable taxes and attach the required tax stamps to products.
- Send a report to their state tobacco tax administrator by the 10th of every month, containing copies of all sales transactions in the previous month. These transactions must include the names and addresses of each customer as well as a list of the products they purchased.
- Comply with state and local requirements governing the sales of vaping products.
Tax requirements can vary by state, and it is important that retailers are clear about what is expected of them. Retailers who do not comply will be subject to heavy penalties, including prison time.
The USPS has had to ban the mailing of vaping products under the PACT Act. Hence, the only option open to online retailers is private carriers. When shipping vaping products, retailers and carriers have to work together to ensure the following:
- Parcels are clearly labelled with a statement highlighting the buyer’s obligation to pay all applicable taxes under federal law.
- Parcels should weigh no more than 10 pounds.
- Upon delivery, parcels should be signed for by a recipient who can present proof of legal age.
- All delivery records should be retained for up to five years, especially if the carrier has reason to believe that the buyer has violated the PACT Act.
Similarly, these regulations have to be observed strictly or the involved parties could face legal consequences.
WHAT PRODUCTS ARE SUBJECT TO THE PACT ACT?
All products that deliver any substance to the user through an aerosolized solution are subject to the PACT Act. This includes e-liquids and devices that do not contain nicotine, even those that are designed to be used only with CBD or THC oil.
WHEN DOES THE PACT ACT COME INTO EFFECT?
The PACT Act is expected to come into effect in March 2021. In anticipation of this, retailers have been working with their lawyers to ensure compliance by the time March rolls around.