Category: Featured

Proposed Increase in E-Cig Import Duties

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Bangladesh Finance Minister Mustafa Kamal proposed a significant increase in import duties on e-cigarettes and their parts in the proposed budget for the 2023–2024 fiscal year, reports the Dhaka Tribune.
The import duty on e-cigarettes will be raised from 5 percent to 25 percent, and for parts of electric cigarettes, the duty will be increased by 100 percent. Previously, there was no import duty on the parts of electric cigarettes.
The minister has also suggested a 150 percent additional duty on liquid nicotine and transdermal nicotine.
The proposed measures aim to increase import duties and make importation of e-cigarettes and related components more expensive in an effort to regulate their use and reduce their prevalence.
June 2, 2023
Anti-Smoking Measures Urged in Settlements

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Three national health organizations in Canada, the Canadian Cancer Society, the Canadian Lung Association and the Heart and Stroke Foundation, are urging the country’s premiers to prioritize initiatives aimed at reducing smoking during settlement negotiations with major tobacco companies, reports The Globe and Mail.
These negotiations have been ongoing for four years following the provinces’ lawsuits seeking $500 billion in damages to recoup healthcare costs. The health organizations argued that tobacco use imposes a devastating toll on disease and death, contributing to the healthcare system’s ongoing crisis. They recommended that at least 10 percent of any settlement funds be dedicated to long-term independent funding for smoking reduction efforts. Additionally, they called for a ban on tobacco promotion by the industry, measures to hold the defendants accountable if tobacco use reduction targets are not met and the public disclosure of internal documents by the companies.
While the negotiations are ongoing, and the precise plans are confidential, the health organizations believe this is a historic opportunity to control the tobacco industry and significantly reduce tobacco use. They emphasize the connection between tobacco use and multiple diseases, including 16 types of cancer.
In the negotiations, all provinces are required to agree to any settlement, giving the government leverage to negotiate stringent measures. The health organizations also express disappointment that they have been excluded from the closed-door negotiations, contrasting it with the involvement of all 50 states in a similar settlement with tobacco companies in the United States in 1998, which resulted in the funding of an independent American foundation to oversee the industry and the disclosure of millions of previously secret documents.
June 2, 2023
Coordinate Fight Against Illicit Trade

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South Africa needs to enhance its coordination and enforcement efforts in combating illicit trade, which has been increasing in the country, according to the report Organised Crime, Corruption and Illicit Trade, reports The Sunday Times.
Esteban Giudici, a policy adviser at the Transnational Alliance to Combat Illicit Trade (Tracit), emphasized that South Africa lacks effective implementation of laws and resources to address illicit trade. The problem is not treated as a comprehensive criminal phenomenon affecting all sectors, which allows criminals to exploit opportunities. The report identifies several sectors, including alcohol, illegal mining, counterfeit goods, falsified medicine, fuel, wildlife trafficking and tobacco, as particularly vulnerable to illicit trade. Giudici stressed the importance of improving coordination, as criminal networks involved in illicit trade operate across multiple countries.
Tracit conducts research on illicit trade and transnational crimes and supports companies and governments in their efforts to combat these crimes. South Africa’s recent gray-listing by the Financial Action Task Force is expected to hinder the government’s post-Covid-19 recovery efforts and investment attraction. Effectiveness in implementing existing laws to combat money laundering, which is closely linked to illicit trade, is crucial. The report recommends that the South African government strengthen coordination, criminal penalties and law enforcement to address the issue effectively. The gray-listing could lead to a contraction of up to 7.6 percent in the country’s GDP, according to estimates by the International Monetary Fund.
June 2, 2023
EU Struggling with Counterfeits

Photo: British American Tobacco
Spanish police conducted raids on three clandestine tobacco factories earlier this year, resulting in the seizure of nearly €40 million ($44 million) worth of tobacco leaf and illicit cigarettes, reports Reuters. One of the factories, located in Alfaro, housed 10 Ukrainian workers, including war refugees, who were forced to work without contracts and receive meager pay. They were not allowed to leave the premises, living and working in the factory under exploitative conditions. This operation reflects a larger trend seen across the European Union, where law enforcement agencies report a surge in seizures of illicit cigarettes.
Criminal organizations traditionally imported counterfeit tobacco products from outside the EU. However, they are now establishing production facilities in western Europe to be closer to lucrative markets with higher prices. The Covid-19 pandemic, which disrupted travel and supply chains, along with the ongoing war in Ukraine—a hub for illicit tobacco production and transit—have further fueled this trend. The rise in counterfeiting presents financial challenges to major tobacco companies as they face declining smoking rates and increasing investments in alternative products such as vapes.
Last year, the EU recorded a record-breaking 531 million seizures of illicit cigarettes, marking a 43 percent increase from the previous year. Around 60 percent of the confiscated cigarettes originated from illicit production within the EU while the rest were smuggled in. To combat this problem, tobacco companies like BAT, Imperial Brands and Japan Tobacco have hired investigators to gather information on counterfeit operations and share intelligence with European authorities.
The industry has declined to disclose the financial impact of the illicit trade, but it is evident that they are taking significant measures to protect their brands and combat illegal activities. Counterfeiters typically replicate popular cigarette brands, and the production cost of a pack of cigarettes is relatively low compared to its market value, leading to substantial profits for criminals. The decline in supplies from China and Asia due to the pandemic has spurred an increase in production within Europe itself. The situation has been further complicated by the war in Ukraine, which disrupted the illicit tobacco trade routes. Many counterfeiters reportedly exploit vulnerable Ukrainian refugees, subjecting them to harsh working conditions akin to “modern-day slavery.”
June 2, 2023
Kaival Brands Acquires Patents from GoFire

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Eric Mosser | Image: Tobacco Reporter archive
[T]he purchase of this extensive patent portfolio marks the first step in diversifying our product offerings for adult consumers and potential revenue streams.”
Eric Mosser, president and CEO, Kaival Brands
Kaival Brands Innovations Group has acquired an extensive patent portfolio from GoFire Inc. with the goal of diversifying its product offerings and creating near-term and longer term revenue opportunities.
The acquired assets will be housed in Kaival Labs, a wholly owned subsidiary of Kaival Brands, which develops new branded and white label products and services in the vaporizer and inhalation technology sectors.
In the near term, Kaival Brands expects to seek third-party licensing opportunities in the cannabis, hemp/CBD, nicotine and nutraceutical markets as a means of monetizing its new patents. Longer term, the company believes it can utilize the acquired patents to create innovative and market-disruptive products, including patent-protected vaporizer devices and related hardware and software applications.
The GoFire patent portfolio includes 12 existing patents and 46 pending patents with novel technologies across extrusion dose control, product preservation, tracking and tracing usage, multiple modalities (i.e., different methods of vaporizing) and child safety. The patents and patent applications cover territories including the United States, Australia, Canada, China, the European Patent Organisation, Israel, Japan, Mexico, New Zealand and South Korea. The portfolio also includes a proprietary mobile device software application that is used in conjunction with certain patents in the portfolio.
“This is a transformative asset acquisition for Kaival Brands,” stated Eric Mosser, president and chief operating officer of Kaival Brands. “As we look to the future of our company beyond our core Bidi Stick distribution business, the purchase of this extensive patent portfolio marks the first step in diversifying our product offerings for adult consumers and potential revenue streams. We are already exploring near-term, revenue generating opportunities through royalty-based licensing agreements with third-party partners in the cannabis, hemp/CBD, nicotine and nutraceutical spaces. Our longer term plan is to incorporate this intellectual property into new, adult-focused products and expand into new segments such as cannabis/hemp, nutraceutical and pharmaceutical markets that we can sell ourselves through existing and potential new distribution partners once all necessary regulatory clearances have been obtained. Additionally, we believe that the portfolio provides us with certain strategic advantages due to the limited number of patents in the vaporizer space. In short, we believe this forward-looking acquisition, with the acquisition consideration structured in key respects at premiums to the current market value of our common stock, broadens and strengthens our company and our prospects considerably as we seek to drive value for our stockholders.”
Nirajkumar Patel, chief science and regulatory officer of Kaival Brands and owner of Bidi Vapor, stated, “We believe these patents and patent applications represent a valuable opportunity to increase our product portfolio and diversify revenue streams. From a science perspective, these patents are innovative with novel applications, and we look forward to developing these patents into commercial or pharmaceutical products for adult consumers. From a regulatory point of view, there are only so many patents in the vaporizer space, and we believe that acquiring an extensive portfolio such as this is a wise strategic purchase for the long-term success of Kaival Brands.”
Peter Calfee, CEO of GoFire, stated, “We are excited to place these valuable assets into Kaival’s hands. After working hard to create this intellectual property with a goal of providing safer and healthier products to the marketplace, we engaged in a comprehensive assessment of how best to further its development into actual products and services with consumer reach. At the end of that process, we chose to invest our patent portfolio in Kaival in exchange for Kaival equity as the right fit for our technology. We have confidence in Kaival’s management team and board of directors as Kaival seeks to further develop and ultimately monetize this technology for the benefit of all Kaival stockholders, including GoFire’s stockholders. We look forward to realizing the potential market strength of this patent portfolio with Kaival.”
June 2, 2023
Sweden Close to Smoke-Free Status

From left to right: Julia Kril (World Vapers Alliance); MEP Johan Nissinen; Carissia During (Considerate Pouchers); MEP Charlie Weimers; Michael Landl (World Vapers’ Alliance) | Source: World Vapers’ Alliance
Sweden has almost reached smoke-free status, which is considered 5 percent of the population or less smoking, reports AP. In 2019, 6.4 percent of Swedes over the age of 15 were daily smokers. Last year, 5.6 percent of the population were smokers, according to the Public Health Agency of Sweden.
“We were early in restricting smoking in public spaces, first in school playgrounds and after school centers and later in restaurants, outdoor cafes and public places such as bus stations,” said Ulrika Arehed, secretary-general of the Swedish Cancer Society. “In parallel, taxes on cigarettes and strict restrictions on the marketing of these products have played an important role.
Members of European Parliament expressed concern with the European Union approach toward smoking cessation, noting a need for an approach following that of Sweden. Charlie Weimers and Johan Nissinen called for a more open approach toward harm reduction in the EU at a press conference in Brussels that was hosted by the World Vapers’ Alliance.
“The Swedish case presents the third and final determining pillar in the pro-harm reduction argument,” said Michael Landl, director of the World Vapers’ Alliance. “The science, the experience of the consumers and now the Swedish example are proof that harm reduction works in achieving a smoke-free society. Now we have an undeniable case that the EU-wide regulation must be risk-based and evidence-supported.”
“Policy should be evidence-based,” said Weimers. “WHO [World Health Organization] will soon classify Sweden as Europe’s first smoke-free country because of harm reduction policies and widespread use of snus. Sweden has a wide range of harm reduction products: We have snus, nicotine pouches, vaping, etc. People are given a choice!”
Nissinen said, “It is clear that smoking kills, and we need to do everything we can to prevent those unnecessary deaths. Sweden is the best example of how this is achievable, namely with a pragmatic harm reduction approach. It is the only country in the EU where snus is legal and popular, with 18 percent of the population using it. Consuming snus instead of cigarettes saved many Swedish lives. It is time that the EU Commission expects this reality and starts acting accordingly.”
“Snus has been used since the 1800s, so we have more than 200 years of a case study that proved that tobacco harm reduction works. Snus is a great way to continue consuming nicotine without harmful chemicals you take from the traditional combustible cigarettes,” said Carissa During, the director of the Considerate Pouchers. “Many countries in Europe are trying to overregulate or ban alternative nicotine products. Policymakers believe that banning something will make them disappear. We know that it is not true.”
The WHO, however, attributes Sweden’s declining smoking rate to tobacco control measures, including information campaigns, advertising bans and “cessation support” for those wishing to quit. The agency stated that Sweden’s tobacco use is at more than 20 percent when including snus and similar products.
“Switching from one harmful product to another is not a solution,” the WHO said in an email, referring to snus. “Promoting a so-called ‘harm reduction approach’ to smoking is another way the tobacco industry is trying to mislead people about the inherently dangerous nature of these products.”
June 2, 2023
Tobacco Plants Used to Make Medicines

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The tobacco plant Nicotiana benthamiana is being used to create pharmaceuticals more sustainably than industrial manufacturing methods, according to a report in EurekAlert!
University of Queensland researchers have used the plant to create a drug to treat multiple sclerosis.
“We are using the natural ability of plants to produce cyclotides—strings of amino acids in a circular shape—which makes them very stable and suitable as oral drugs,” said David Craik, professor at the University of Queensland’s Institute for Molecular Bioscience.
“Using modern molecular biology techniques, we can effectively instruct the plant cell to produce the molecule of interest.
“The wild tobacco leaves are then harvested, freeze-dried, and the molecule is processed to be turned into oral medication.”
“Harnessing plants as ‘biofactories’ is more cost-effective as it uses fewer resources and is less wasteful, with a much simpler production process,” said Mark Jackson from the Institute for Molecular Bioscience, comparing the process to industrial manufacturing methods. “This method can also scale up very sustainably—using just light, water and nutrients.”
“We have shown it is possible to scale up production of cyclotides in plants, providing a platform for growing other medications for pain, cancer or obesity,” Craik said. “There is also an opportunity to build capacity for biomanufacturing in Australia with advances in vertical farming—where we can easily have a controlled environment to grow the plants.”
Tobacco Reporter covered the potential of tobacco as green bioreactors in-depth in its April 2022 issue.
June 2, 2023
Vaping Up in U.K. Prisons

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Vaping has surged in U.K. prisons since a smoking ban went into effect in 2017 (in England and Wales), according to Filter.
In the 2021–2022 financial year, prisoners spent close to £8 million on vapor products. Prisoners have access to vapes as well as nicotine-replacement therapy.
While the surge in vaping has been positive in terms of harm reduction, the abrupt change has had its challenges. With the prohibition of smoking in prisons came illicit cigarettes and trading/selling other personal property, including meals, in order to obtain cigarettes.
The Howard League for Penal Reform “has supported making prisons smoke-free in principle, given the health risks to both prisoners and staff,” said Andrew Neilson, director of campaigns. “But we’ve always been concerned that the ban was implemented responsibly and that prisoners were given the proper support and resources to move away from smoking.”
Neilson cited a general lack of provisions to support mental and physical health, including lack of access to fresh air. “Prisons are still struggling to deliver these kinds of open regimes after the pandemic effectively locked prisons down and saw people kept in their cells 23 hours a day.”
The smoking ban raises questions, according to Andy West, who teaches philosophy in prisons, when a prison cell is someone’s residence and when “people still want to smoke” and “prisons seem to stoke addictions.” He said that illicit cigarettes are “more dangerous” and “Prohibition always creates a bigger monster than the one it kills.”
Despite this, the number of prisoners who have turned to vaping and stuck with it is promising. “The fact that many people have access to vaping products is welcome news from a tobacco harm reduction perspective,” said Debbie Robson, senior lecturer in tobacco harm reduction at King’s College London. “Great progress has been made in creating a smoke-free prison estate despite doubting it was achievable given the high smoking rates in prison settings.”
Robson speaks with formerly incarcerated individuals while conducting research, and many have expressed that their first vaping experiences were in prison, and “some have stayed smoke-free ever since.”
“As a nurse, that makes me question why a prison setting may be the first time someone has the opportunity to use a vape,” she said. Outside the prison system, “health and social care practitioners can do more to raise awareness and reduce barriers to vaping in groups where smoking prevalence is high,” she said.
June 2, 2023
British Government Cracks Down on Kids Receiving Vapes

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The British government is cracking down on a loophole that allows retailers to give free vape samples to kids, reports Reuters.
“I am deeply concerned about the sharp rise in kids vaping and shocked by reports of illicit vapes containing lead getting into the hands of school children,” Prime Minister Rishi Sunak said. “The marketing and the illegal sales of vapes to children is completely unacceptable.”
“We should continue to encourage smokers to swap to vaping as the lesser risk whilst preventing the marketing and sale of vapes to children,” England’s chief medical officer, Chris Whitty, said.
The government plans to review the rules on issuing fines to shops that sell vapes to those under the age of 18 in order to more easily allow local authorities to issue on-the-spot fines and fixed penalty notices.
The U.K. Vaping Industry Association (UKVIA) expressed support for the government’s decision.
“The UKVIA fully supports the government’s actions to protect minors and urges the Prime Minister to ensure that this tough stance is followed up with equally tough action,” said John Dunne, director general of the UKVIA, in a statement. “For too long, some rogue firms have felt they had free reign to sell a product designed to help adult smokers quit to youngsters because they realized that the chances of getting caught were slim at best.
“Even if they get caught, the fines—which have been as low as just £26—are no deterrent, so we welcome the review into fines and repeat our calls that they should be up to £10,000 per instance and be backed up by a retail licensing scheme, which would include age verification requirements and robust enforcement by Trading Standards departments up and down the country.
“Sadly, many Trading Standards departments are not resourced anywhere near enough to clamp down on the illicit and illegal vape sales, and this is an issue that the government should now look at very seriously indeed.
“Data in the possession of the UKVIA shows that very few prosecutions have been made for underage or illicit sales across the country, and this must be addressed as a matter of urgency,” Dunne said. “Unless unscrupulous traders know that selling vapes to children is an endeavor that would be financially ruinous to them, then they will continue to do so.”
“We totally agree that there can be no justification in giving free vape samples to children—whether or not they contain nicotine—but any new measures the government does impose in this area must not impact on the tremendous work being done by stop smoking centers around the country.”
June 2, 2023
India Requires Tobacco Warnings on Streaming

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India is requiring streaming sites like Netflix and Amazon Prime Video to show prominent warnings about smoking and tobacco use in shows where tobacco products are portrayed, reports Reuters.
The Cigarette and Other Tobacco Products Amendment Rules 2023 require streaming services to display “anti-tobacco health spots” that are at least 30 seconds long at the start and middle of a program. The services also have to display an anti-tobacco health warning as a “static message” at the bottom of the screen when tobacco products are displayed. Audio-visual disclaimers about the negative effects of tobacco use are also required.
“India’s new regulations will ensure that streaming services are not the next vehicle for Big Tobacco’s aggressive targeting of Indian youth,” said Yolonda Richardson, a Campaign for Tobacco-Free Kids executive.
If streaming sites fail to adhere to the new rules, the federal government will take suo moto action.
June 2, 2023