The Prevent All Cigarette Trafficking (PACT) Act, which prohibits the shipping of vapor products through the U.S. Postal Service (USPS), has claimed its first victim.
In a letter to its business partners, Securience announced it would be closing its doors at the end of March. Securience is the parent company of vapor brands such as DuraSmoke, Forge, AmericaneLiquidStore and VapeMoar.
In its letter, Securience cites its inability to mail product to consumers; however, the PACT Act also prevents business-to-business shipments by the USPS, according to a representative from the Bureau of Alcohol, Tobacco and Firearms who spoke during the recent Tobacco and Vapor Law Symposium presented by the Keller and Heckman law firm.
“Because of the complexity of these new shipping rules, FedEx, UPS and DHL have all informed us that they will stop shipping vaping products completely—including our shipments to you, our wholesale vape shop customers and distributors,” wrote Securience owner Don Muehlbauer. “While we have looked at some alternatives, given the geographic locations of our customers, the significant increase in compliance costs, and our capabilities as a small business, we have been unable to find a feasible alternative and have been left in a situation that makes continuing business impossible.”
Securience opened its doors in 2008 and has since been a staple in the vaping industry. Muehlbauer stated that he anticipates the PACT Act will not only impact his company, but many small e-liquid manufacturers. “Those manufacturers who are able to afford the increased compliance costs will have increased shipping costs that may impact [retail] shops,” he wrote. “The last day we will be able to accept orders for shipping is March 25 or until supplies run out.”