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Category: Global Regulation

  • Small Tobacco Firms Sue Virginia Over Flavored Vape Restrictions

    Small Tobacco Firms Sue Virginia Over Flavored Vape Restrictions

    Two Virginia-based vape distributors — NOVA Distro Inc. and Tobacco Hut and Vape Fairfax, Inc. — filed a federal lawsuit last week challenging the state’s upcoming restrictions on flavored vapor products. The suit, filed in the U.S. District Court for the Eastern District of Virginia, names Attorney General Jason Miyares and other state officials as defendants.

    The companies argue that Virginia’s new law, which bars the sale of any nicotine or vapor product not listed on an official state directory and effectively bans flavored vapes, is unconstitutional. According to the complaint, the measure unlawfully delegates federal regulatory powers over tobacco products—reserved for the Food and Drug Administration—to state authorities, violating the Supremacy Clause.

    The plaintiffs are seeking an injunction to block the law before it takes effect on December 31, warning that enforcement would force small businesses to pull most of their inventory from shelves. The case, NOVA Distro et al. v. Miyares et al., is among the first legal challenges to a state-level vape directory law, setting up a potential test of federal preemption in the regulation of nicotine products.

  • Taiwan Pulls Legal Heated Products on Day They are Launched

    Taiwan Pulls Legal Heated Products on Day They are Launched

    Taiwan’s first legally approved heated tobacco products were removed from stores on October 17, the same day they launched, after inspectors found packaging failed to comply with nicotine-content labeling regulations. Vice Minister Chuang Jen-hsiang said health risk assessments were prioritized during product reviews, and manufacturers were aware that all legal requirements, including accurate labeling, must be met.

    Minister of Health and Welfare Shih Chung-liang confirmed that the recall had been completed, and products can return to stores once packaging issues are corrected. Importers face fines of up to NT$5 million (US$163,400) for violations, while retailers may be fined up to NT$50,000. Heated tobacco products are regulated under the 2023 amendment to the Tobacco Hazards Prevention Act, which bans e-cigarettes while allowing approved heated tobacco following a thorough health risk assessment.

    Since July 29, the Health Promotion Administration has approved 14 products from U.S. and Japanese companies.

  • TPA Brief Criticizes WHO Tobacco Treaty for Ignoring Evidence

    TPA Brief Criticizes WHO Tobacco Treaty for Ignoring Evidence

    The Taxpayers Protection Alliance (TPA) released a new policy brief today (October 20), “FCTC: The Wrong Lessons Learned,” by Roger Bate, a fellow at the International Center for Law and Economics, criticizing the World Health Organization’s Framework Convention on Tobacco Control (FCTC) for drifting from its original mission of evidence-based policy. The paper argues that the treaty’s decision-making process has become obscured, ideological, and resistant to scientific debate—particularly around harm reduction products such as e-cigarettes and oral nicotine.

    “The FCTC has evolved into a closed process—hostile to scientific dissent, opaque in its deliberations, and resistant to consumer-driven innovation in tobacco harm reduction (THR),” the paper begins. “This paper argues that the FCTC has become a cautionary model for global public-health governance. Unless checked, this model risks entrenching an authoritarian and anti-scientific impulse across public health. The THR community must lead the counter-narrative—to reform tobacco control and safeguard the integrity of evidence-based policymaking.”

    Bate contends that the FCTC’s approach “demonizes safer alternatives despite real-world success,” preventing adult smokers from accessing less harmful products that could help them quit. He warns that the treaty’s governance flaws mirror broader problems in global health governance, including pandemic response. “A treaty built to reduce smoking deaths should evaluate tools by outcomes, not ideology,” he said.

    The brief calls for reforms, including open sessions at FCTC Conferences of the Parties (COPs), equal conflict-of-interest scrutiny, independent comparisons of cessation tools, proportionate youth protections, and fiscal accountability. TPA fellow Martin Cullip urged the WHO to “reassess the evidence on reduced-risk nicotine products” and improve transparency, warning that the FCTC’s current direction “has become an obstacle to global public health progress.”

  • Taiwan FDA Developing Tests for 27 Additives for Flavorings

    Taiwan FDA Developing Tests for 27 Additives for Flavorings

    Taiwan’s Food and Drug Administration (TFDA) is developing testing methods for 27 additives that will soon be banned from flavored nicotine products, Health Promotion Administration (HPA) Director-General Shen Ching-fen said last week. The move follows amendments to the Tobacco Hazards Prevention Act, announced in March, which aim to strengthen oversight of tobacco ingredients and restrict products that appeal to young people. Shen said the FDA’s detection methods would apply to both traditional and electronic cigarettes once post-market regulatory systems are ready.

    The HPA said 14 flavored cigarette products that previously received conditional approval would soon enter the market, while all others remain illegal.

    To enforce the new rules, authorities have launched nationwide inspection campaigns with local health bureaus to monitor physical stores and online platforms. Inspections will target underage sales and illegal advertising, including social media promotions and “unboxing” videos. Shen said the decision to regulate by listed additives—rather than by flavor—was made to simplify testing procedures, with related regulations expected to be finalized and implemented next year.

  • South Korean Court Rules Partial Tax Exemption for Imported Nicotine

    South Korean Court Rules Partial Tax Exemption for Imported Nicotine

    A Seoul Administrative Court ruled that some imported nicotine liquids for e-cigarettes are not subject to tobacco-related taxes, distinguishing between nicotine derived from tobacco leaves and stems. The October 19 decision partially upheld a lawsuit filed by a local importer, referred to as “Company A,” challenging a 510 million won ($357,000) public health surcharge imposed by the Ministry of Health and Welfare.

    The importer brought nicotine liquids from Malaysia and China between August 2018 and June 2019, declaring the products tax-exempt on the grounds that Malaysian nicotine was extracted from tobacco stems, not leaves. Under South Korea’s Tobacco Business Act, products derived from leaves are taxed, while those from other plant parts are not. The court canceled 212 million won ($148,000) in taxes on Malaysian imports but upheld 298 million won ($209,000) on Chinese shipments, which evidence showed were derived from tobacco leaves.

    Judge Kang Jae-won highlighted that documentation from the Chinese supplier indicated extraction from “leaf veins,” justifying taxation, while Malaysian documentation lacked proof of leaf usage. The ruling highlights the regulatory complexity of South Korea’s growing e-cigarette market, where small botanical and chemical distinctions can determine tax liability for importers and manufacturers.

  • Mexico Poised for Large Tobacco Tax Increase

    Mexico Poised for Large Tobacco Tax Increase

    Mexico’s proposed 2026 federal budget includes a steep hike in tobacco taxes that industry groups warn could expand illicit trade and harm small retailers. The plan would raise the ad valorem IEPS tax from 160% to 200% and gradually increase the per-cigarette quota from MX$0.61 ($0.033) to MX$1.15 ($0.062) by 2030.

    Officials say the measure aims to reduce smoking and fund healthcare, but trade associations argue it will instead push consumers toward cheaper illegal products. Legal cigarette packs could reach MX$100 ($5.40), while contraband versions sell for just MX$20–25 ($1.08–1.35), creating strong incentives for black-market purchases.

    According to the National Association of Small Traders (ANPEC), the price gap threatens 1.2 million small stores that support about 5 million people, as illicit sellers undercut legal retailers. The Confederation of Industrial Chambers (CONCAMIN) estimates tax evasion from illegal cigarettes costs the government MX$13–15 billion annually, with up to half of the tobacco market now illicit.

    Government data shows tobacco tax collections have fallen since 2019, dropping 6.9% year-on-year in 2024 and accounting for just 0.8% of total state income.

    The Senate is expected to debate and vote on the proposal starting October 20.

  • Vietnam to Ban E-Cigarette and Heated Tobacco Investments

    Vietnam to Ban E-Cigarette and Heated Tobacco Investments

    Vietnam plans to ban all investment and business activities related to electronic cigarettes and heated tobacco products in a move aimed at protecting public health. The proposal, discussed at the National Assembly’s 50th Standing Committee session, is part of a broader revision of the Investment Law to simplify project approvals and update prohibited business sectors.

    Deputy Finance Minister Nguyễn Thị Bích Ngọc said the draft law would restrict prior approval to sensitive projects, including those affecting national security, the environment, or major infrastructure. The ban aligns with Resolution 173 adopted in November 2024, which calls for a nationwide prohibition on the production, trade, import, storage, transportation, and use of e-cigarettes, heated tobacco, and other addictive substances.

    Lawmakers welcomed the reforms while recommending limited exceptions for exports, scientific research, medical use, or national defense. If passed, the measure would mark Vietnam’s strongest action yet against new forms of tobacco, reinforcing the country’s commitment to public health amid the global surge in vaping and heated tobacco use.

  • Philip Morris Italia Under Investigation for ‘Smoke-Free’ Language

    Philip Morris Italia Under Investigation for ‘Smoke-Free’ Language

    Italy’s competition authority launched an investigation into Philip Morris Italia for allegedly misleading advertising related to its “smoke-free” electronic cigarettes. The probe, announced today (October 15), centers on the company’s use of phrases such as “a smoke-free future” and “smoke-free products,” which regulators say could mislead consumers into believing the products are harmless.

    The Italian Competition Authority (AGCM), accompanied by financial police, searched two Philip Morris offices in Italy as part of the inquiry. The watchdog said that while these products do not involve combustion, they can still pose health risks and cause addiction.

    “Philip Morris Italia believes it has always acted in full compliance with applicable regulations,” a PMI spokesperson said regarding the proceedings initiated the AGCM. “The company is confident that its communication is factual, truthful, and fully consistent with both Italian and European legislation, which associate the absence of smoke with the absence of combustion. Italian Legislative Decree No. 6/2016, which transposes EU Directive 2014/40/EU, defines in Article 2, paragraph 5, a ‘smoke-free tobacco product’ (‘smokeless tobacco product’ in the English version of the directive) as ‘a tobacco product that does not involve a combustion process.’

    “The pursuit of a smoke-free future has been the primary global objective of Philip Morris International for nearly a decade—an ambition that the Italian affiliates have been working toward for years, alongside an integrated ‘Made in Italy’ value chain involving 44,000 people.

    “The company will continue to cooperate with the Authority throughout the proceedings to demonstrate the full legitimacy of its actions.”

    The move follows similar action in France earlier this year, where Philip Morris was fined €500,000 for promoting its IQOS heated tobacco device as safer under the classification of harm reduction.

  • JTI Malaysia Backs Phased Tobacco Excise Hike, Stresses Illicit Concerns

    JTI Malaysia Backs Phased Tobacco Excise Hike, Stresses Illicit Concerns

    JTI Malaysia voiced support for the government’s phased tobacco excise increases for budget 2026, starting November 1, describing the approach as balanced for revenue stability and enforcement continuity. The company emphasized that illicit cigarettes remain a major concern, urging continued coordination between the Ministry of Finance, Royal Malaysian Customs, and industry players to ensure tax adjustments are matched by strong border enforcement.

    JTI also expressed disappointment that vape products were excluded from excise measures, despite full regulatory parity under the 2024 Control of Smoking Products for Public Health Act.

  • Trinidad and Tobago Doubles Duties on Cigarettes, Alcohol

    Trinidad and Tobago Doubles Duties on Cigarettes, Alcohol

    Two weeks after Trinidad and Tobago’s Ministry of Health said it was laying the groundwork for a new approach to tobacco control, its Finance Minister, Davendranath Tancoo,  announced the doubling of customs duties on alcohol and tobacco products, measures expected to account for 80% of next year’s projected revenue growth. Combined with additional customs fees, high-end electric vehicle taxes, and a new 5% import tax on single-use plastics, the island nation is expecting to generate an additional $1 billion in annual revenue.

    Effective immediately, cigarette duties were raised from $5.26 to $10.52 per pack of 20, while alcohol went from $79.25 to $158.50 against percent of alcohol content, and beer from $5.14 to $10.28 by gravity. Beginning January 1, the customs declaration fee will double to $80, and the container processing fee doubles to $1,050, while EVs valued over $400,000 will face a 10% duty, 12.5% VAT, and a tiered motor vehicle tax.