If you’re involved in the vape industry, you probably have heard of the PACT Act. Many vape shops fear they won’t be able to buy their wholesale vape devices, e cigs, vape juice, accessories, and supplies from their distributors. But don’t worry, VaporBeast is here to dispel any incorrect rumors and lay out the facts.

What is PACT Historically?

In order to understand the current legal landscape, here’s some quick background history…

The precursor to the PACT Act is the Jenkins Act, passed in 1949. This law made it necessary for interstate shippers to report cigarette sales to state tobacco tax administrators. The law was implemented to curb tax avoidance as well as illicit sales.

60 years later, in 2009, the Prevent All Cigarette Trafficking Act (PACT, for short) was passed as an amendment to the Jenkins Act. It was passed by the FDA after the body gained regulatory control of tobacco products via the Tobacco Control Act.

The PACT Act prohibits the USPS from delivering cigarettes and smokeless tobacco products directly to consumers. The law also requires all tobacco and cigarette vendors to register with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (the ATF). In addition, PACT also makes it necessary for cigarette vendors to keep monthly records of persons shipping tobacco products as well as record the brand and quantity of shipments.

What is the PACT ACT Today?

In 2020, the Preventing Online Sales of E-Cigarettes to Children Act was passed. This amendment to the PACT Act adds Electronic Nicotine Delivery Systems (ENDS) to the shipping ban items list. The U.S. government defines ENDS as “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device.”

Basically, all of this legal jargon means that the USPS cannot ship vape devices, e-liquid, accessories, etc. This USPS vape mail ban went into effect on October 21, 2021.

The Domino Effect: UPS, FedEx, and DHL

Exacerbating the issue is that UPS, FedEx, and DHL have all followed suit and imposed vape product bans as well.

These private entities have done this to avoid potential legal/financial pitfalls from failing to meet the strict regulatory guidelines in place under the revised PACT Act. The increased regulatory taxes on vapes makes shipping too expensive for these carriers. In addition, the increased documentation required of vape shippers is another obstacle. Penalties for failing to pay taxes or follow exact documentation specifications can include huge fines and even jail time.

What this means for the Wholesale Distributor

Online retail will become too complex for many companies. The most viable alternative will be to rely on wholesale distribution to local brick-and-mortar shops. Basically, this means 3 main things for the wholesale distributor:

• The wholesaler will have to ship their product to local vape shops.
• The wholesaler will have to navigate the legal and regulatory roadblocks.
• The wholesaler will have to use a private carrier for bulk delivery of retail-packaged products.

What this means for you, the wholesale customer

Luckily, for the wholesale customer, not much will change on the brick-and-mortar shop end. In fact, brick-and-mortar business should pick up due to online retail regulations.

Shipping from your manufacturers could get more expensive. In addition, there may be more forms to sign to make sure legal requirements are met. However, fortunately, from a legislative standpoint, not much changes for vape shop owners.

We hoped this article helped clarify the complicated nature of the PACT Act, but if you have any additional questions, please reach out to our wholesale team. We look forward to hearing from you!