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Tag: illicit vape

  • Philippines Says 93% of Vape Brands Unregistered

    Philippines Says 93% of Vape Brands Unregistered

    The Philippines’ Department of Trade and Industry (DTI) said 292 of 313 vape brands (93%) identified in the market are not registered with the agency. DTI Assistant Secretary Marcus Valdez II disclosed the figures during an Aug. 25 House Ways and Means Committee hearing on tobacco and vapor excise taxes.

    Lawmakers and government agencies are considering a single excise tax rate for nicotine salt and freebase vapor products, arguing the current two-tier system contributes to tax leakage and illicit trade. “They will not register because the tax is too high,” committee chairman Miro Quimbo said. The Bureau of Internal Revenue reported 6,196 tobacco and vape enforcement operations in 2026, generating an estimated P1.7 billion ($27 million) in excise taxes.

    The Bureau of Customs reported 253 tobacco seizures worth P10 billion ($160 million) and 18 vapor-product seizures worth P1.6 billion ($25.6 million) this year, compared with P1.87 billion and P649 million ($29.9 million and $10.4 million), respectively, in 2025. Lawmakers cautioned that excessive taxes could drive more consumers toward illicit products, with Rep. Roberto Nazal saying authorities should avoid “overtax[ing] to the point that we will promote further smuggling.”

  • Russia Expands Criminal Penalties for Illicit Vape Imports

    Russia Expands Criminal Penalties for Illicit Vape Imports

    Russia added e-cigarettes, electronic smoking devices, vape liquids, and nicotine salts, along with wine, beer, and alcoholic cider, to a list of goods subject to tougher criminal penalties for illegal cross-border movement, effective today (Aug. 20).

    People found illegally moving the newly listed products across Russia’s customs border or its state borders with other Eurasian Economic Union members could face up to five years in prison when shipments are valued at more than 100,000 rubles ($1,200), provided all elements of the offense are met. Previously, some such violations were generally handled administratively through fines or compulsory labor.

    The measure expands a 2022 crackdown that designated hard liquor and tobacco products as strategic goods.

  • Man Arrested in Indonesia for Running Labubu Vape Ring

    Man Arrested in Indonesia for Running Labubu Vape Ring

    Authorities in Indonesia arrested a Singaporean national in Medan, Indonesia, for allegedly operating an illicit vape production and distribution network that generated an estimated 10 billion rupiah ($565,000) in profits since 2025. Police said the suspect coordinated production of vape products packaged with Labubu branding from Thailand, supplied raw materials from China, and used cryptocurrency transactions to conceal financial flows. A raid on the operation’s production site in Medan resulted in the seizure of 862 vape cartridge tubes, dozens of vape liquid bottles, and more than 10,500 branded vape packages. One Indonesian accomplice was arrested, while a third suspect remains at large.

  • Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    Singapore’s Illicit Vape Trade Generated $8.1M Despite Ban

    A new report by the EU-ASEAN Business Council and Euromonitor International estimates Singapore’s illegal vape market generated S$10.4 million ($8.1 million) in revenue between 2024 and 2025, contributing to roughly S$156 million ($121.7 million) in lost government revenue from illicit tobacco sales. Despite Singapore’s 2018 vaping ban and stricter penalties, authorities continue to intercept large shipments, including a February seizure of e-vapes worth over S$1.1 million ($858,000). Singapore Customs also reported sharp rises in duty-unpaid cigarette seizures in 2024 and 2025, underscoring the persistence of illicit trade even as the country maintains one of the region’s lowest rates of illegal cigarette consumption.

  • Thailand Police Bust $5.5M Vape Network

    Thailand Police Bust $5.5M Vape Network

    Thai authorities dismantled a large-scale online e-cigarette distribution network following a warehouse raid in Samut Prakan, seizing more than 20,000 vape products valued at over THB200 million ($5.5 million) and arresting seven suspects. Investigators said the operation, linked to online sales through a platform identified as “Shisha Chic,” was processing over 1,000 orders daily, generating several million baht in daily cash flow.

    Police said the suspects were employees responsible for packing and distributing products, while efforts are ongoing to identify and prosecute the network’s organizers. Authorities are also considering action under anti-money laundering laws and have signaled further nationwide crackdowns targeting online sellers, distributors, and illicit retail operations.

  • ‘Made in America’ Claims Rise as Brands Navigate Crackdown

    ‘Made in America’ Claims Rise as Brands Navigate Crackdown

    A Reuters investigation reports a growing wave of vape brands promoting “Made in America” credentials as the U.S. market faces tougher enforcement against unlicensed products, particularly those linked to Chinese manufacturers. The article says at least eight new brands have emerged since October, emphasizing U.S. identity, despite lacking authorization from the U.S. Food and Drug Administration, which has approved only a limited number of vaping products for sale.

    According to the report, trademark filings show some of these brands are tied to Chinese or Hong Kong interests, suggesting the marketing shift may be aimed at avoiding scrutiny from customs officials amid heightened trade tensions and regulatory pressure under the administration of Donald Trump. Analysts cited by Reuters say the tactic could slow efforts to push consumers from the illicit to the regulated vape market.

    The story also highlights that China remains the dominant supplier of vapes to the U.S., with trade data showing exports worth over $4 billion in 2025, even as companies experiment with partial U.S. production or American-themed branding to adapt to tariffs, enforcement actions, and changing consumer perceptions.

  • Russian Police Seize $1.6M in Illicit Vapes

    Russian Police Seize $1.6M in Illicit Vapes

    Russian police in the Tambov region seized more than 150,000 e-cigarettes, along with cartridges and liquids worth about 126.5 million rubles ($1.6 million). Authorities said the products were shipped from Moscow disguised as small household appliances and supported by fake documents. Testing found nicotine levels significantly higher than stated on the packaging. A man has been detained, and a criminal case has been opened for the storage and sale of unmarked e-cigarettes.

  • NZ Faces Rising Illicit Tobacco Trade

    NZ Faces Rising Illicit Tobacco Trade

    More than one in four cigarettes consumed in New Zealand came from the illicit market last year, according to a new independent report commissioned by Imperial Brands and BAT New Zealand. The study found that 27% of total tobacco consumption was illegal, up from 23.6% the previous year, resulting in lost excise revenue estimated at over NZ$600 million ($348 million). The rise is largely driven by a 41.9% increase in smuggled, contraband cigarettes.

    Industry representatives warned that without decisive intervention, New Zealand risks facing the same challenges seen in Australia, where delayed responses allowed illicit trade to flourish post-COVID. “The report shows New Zealand’s illicit tobacco trade continues to escalate,” said an Imperial Brands spokesperson. “It would be a mistake to assume the violence and criminal networks associated with an uncontrolled illicit market couldn’t happen here.”

    BAT New Zealand echoed the call for immediate action, highlighting the importance of proactive measures. “Australia presents a cautionary tale of how quickly illicit tobacco can take hold,” a BATNZ spokesperson said. “New Zealand has the opportunity to act now to prevent the exponential growth of illegal tobacco and protect both public health and government revenue.”

    Read the full report here.

  • Modernization and Enforcement Needed for Pakistan’s Illicit Crisis

    Modernization and Enforcement Needed for Pakistan’s Illicit Crisis

    Pakistan’s tobacco industry is facing mounting pressure as illicit cigarettes tighten their grip on the market, eroding government revenue and undermining the legitimate sector, according to experts. Macroeconomic analyst Osama Siddiqui said the country needs a robust track-and-trace system and stronger coordination among enforcement and revenue authorities to monitor production, distribution, and retail.

    “Without a decisive crackdown on the illicit tobacco trade, Pakistan’s legal industry will continue to suffer while the black market thrives unchecked,” Siddiqui said. “A modernized supply chain and sustained enforcement are the only ways to reclaim lost revenue and restore market fairness.”

    Recent estimates indicate that illicit cigarettes now make up more than half of total sales, costing the national exchequer over Rs 415 billion ($1.5 billion) annually. The smuggled, untaxed, and/or products sold below the legal minimum price continue to weaken the formal industry’s competitiveness while fueling organized black-market networks, experts say.