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Tag: ITC

  • ITC Rules ‘No Violation’ in RJR Complaint

    ITC Rules ‘No Violation’ in RJR Complaint

    The U.S. International Trade Commission issued a final determination in its investigation into certain disposable vaporizer devices, ruling that there was no violation of Section 337 in the case brought by R.J. Reynolds Tobacco Company, which targeted brands like Elf Bar and Geek Bar. This followed an earlier denial of a temporary exclusion order due to a lack of evidence regarding the likelihood of success on the merits.

    R.J. Reynolds began pivoting its legal strategy with a new investigation instituted by the USITC on March 3, which shifts focus to alleged violations of the PACT Act, state flavor bans, and tax laws by Chinese manufacturers and U.S. distributors. While the previous patent-based case is closed, the commission has begun its review of these new, broader regulatory and competition-based allegations.

    Following the ruling, the Vapor Technology Association’s executive director, Tony Abboud, issued a statement, saying, “The ITC’s decision represents a positive path forward for our industry. It proves that, unlike the misguided FDA, some federal agencies are still willing to stand up to corporate interests for the good of our free market and American public health. The ITC’s decision, rejecting all of the claims, is a decisive blow against those seeking to use government agencies to corner a market and a huge step for President Trump’s America First agenda. 

    “We appreciate the ITC referencing our submission in its final decision and take this inclusion as a sign that the ITC seriously listened to the concerns of the massive American independent vaping industry.” 

  • ITC Opens ENDS Investigation on Reynolds Complaint

    ITC Opens ENDS Investigation on Reynolds Complaint

    The U.S. International Trade Commission (USITC) has launched an investigation into certain disposable and closed-system electronic nicotine delivery systems and related components following a complaint filed by R.J. Reynolds Tobacco and affiliated companies. The complaint alleges violations of the Prevent All Cigarette Trafficking (PACT) Act, state and local flavor bans, directory requirements, and excise tax compliance, claiming that imports and sales of these products threaten the U.S. industry.

    Respondents include nine U.S. distributors such as D&A Distribution and Midwest Goods, as well as seven manufacturers based in China and Hong Kong, including Geek Miracle and Shenzhen Geekvape Technology. The USITC has not ruled on the merits and will hold evidentiary hearings before issuing a determination, with potential remedies including exclusion and cease-and-desist orders.

  • U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    A potential U.S. ban on imports of certain disposable e-cigarettes could reduce illegal vape sales by as much as one-third, according to British American Tobacco CEO Tadeu Marroco. BAT estimates unauthorized products, largely manufactured in China, account for roughly 70% of U.S. e-cigarette sales, undermining both regulated vape brands and traditional cigarette businesses. The company is pursuing two cases before the U.S. International Trade Commission (ITC) seeking to block imports of products that infringe its patents. An ITC judge previously recommended an exclusion order, with a final decision expected in March, followed by a 60-day presidential review.

    “What we want to see in the US is a level playing field because in a level playing field, we know that we can win,” Marroco said.

    Marroco cautioned that any market impact would likely be delayed due to existing supply chains and inventory levels, suggesting significant effects may not occur until 2027. He also indicated that the U.S. Food and Drug Administration could consider alternative regulatory approaches for e-cigarettes, potentially including flavored products, as the agency evaluates ways to streamline product authorization processes.

  • India’s ITC Sees Profits Drop 10% with Labor Charge

    India’s ITC Sees Profits Drop 10% with Labor Charge

    ITC, India’s largest cigarette maker, reported a 10% decline in quarterly profit, weighed down by higher raw material costs and a one-time charge linked to the rollout of the country’s new labor codes. Standalone profit fell to 50.9 billion rupees ($560 million) for the quarter ended December 31, while total expenses rose 5%, partly due to rising prices of leaf tobacco, edible oil, and wheat, according to Reuters.

    Despite the profit drop, ITC’s cigarettes business — its biggest segment — posted an 8% rise in revenue, supported by steady volumes, even as leaf tobacco prices climbed amid stronger export demand. The company warned of further pressure on the sector after India imposed additional excise duty on cigarettes on top of a 40% goods and services tax, a move it said could fuel illicit trade among the country’s estimated 100 million smokers.

  • Reynolds Files Complaint with ITC Over Illicit Products

    Reynolds Files Complaint with ITC Over Illicit Products

    R.J. Reynolds Tobacco Co. and its subsidiaries have filed a complaint with the U.S. International Trade Commission seeking an investigation into alleged unlawful practices by Heaven Gifts International—the company behind Elf Bar and Geek Bar—along with its subsidiaries and nine U.S. distributors. According to Law360, the 247-page complaint accuses the respondents of selling flavored vaping products in jurisdictions where they are banned, selling products not listed in required state directories at the time of sale, and evading state and local excise taxes, conduct Reynolds frames as unfair competition under Section 337 of the Tariff Act and noncompliance with the PACT Act. The ITC has acknowledged receipt of the complaint and opened a public comment process.

    Reynolds argues that the alleged violations have enabled a large, illicit market that has significantly undercut lawful products such as its Vuse brand. The company pointed to FDA data showing that only 39 e-cigarette products and devices are currently authorized for sale in the U.S., including 16 from Reynolds and none from Heaven Gifts or its affiliates. Reynolds is seeking broad remedies, including a general or limited exclusion order blocking imports of the accused products, cease-and-desist orders against the named companies, and the imposition of a bond during the ITC’s 60-day presidential review period.

  • Altria Pushes to End Juul’s ITC Patent Investigation

    Altria Pushes to End Juul’s ITC Patent Investigation

    NJOY and Altria Group are asking a federal judge in Virginia to immediately halt a U.S. International Trade Commission investigation triggered by Juul Labs’ nicotine-salt patent claims, arguing the ITC lacks constitutional authority to hear the case. In a reply filed Tuesday (January 6) in the U.S. District Court for the Eastern District of Virginia, the companies urged the court to grant summary judgment and permanently enjoin the ITC proceeding rather than allow it to continue while constitutional challenges are litigated.

    The filing argues the investigation violates the Appointments Clause, improperly insulates ITC administrative law judges through double for-cause removal protections, and infringes Article III limits, citing the Supreme Court’s decision in SEC v. Jarkesy. Altria and NJOY contend they are suffering irreparable harm by being subjected to an allegedly unconstitutional process, noting the ITC has scheduled an evidentiary hearing for April 22, 2026.

  • Indian Tobacco Stocks Slide After New Tax Announced

    Indian Tobacco Stocks Slide After New Tax Announced

    Shares of Indian tobacco companies fell sharply after the government imposed a new excise duty on cigarettes, raising costs for an estimated 100 million smokers. Market leader ITC dropped more than 9%, hitting its lowest level since April 2023, while Godfrey Phillips India, distributor of Marlboro, sank over 14% in its steepest fall in nearly a decade. The sell-off made ITC the biggest decliner on the Nifty 50 and dragged down the FMCG index.
    India’s finance ministry said the new excise duty, effective February 1, will range from 2,050 to 8,500 rupees per 1,000 cigarette sticks, depending on length, on top of the existing 40% Goods and Services Tax. Analysts said the move could raise overall costs for some cigarette categories by 22% to 28%, likely prompting price hikes of 2–3 rupees per stick for longer cigarettes.
    Brokerages warned the tax increase could pressure volumes and revive concerns about a shift toward illicit cigarettes.

  • BAT Sells $1.5B Stake in ITC

    BAT Sells $1.5B Stake in ITC

    Yesterday (May 28), British American Tobacco said it sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share. The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion.

    According to Reuters, the final sale price represented a 4.8% discount to ITC’s closing price of 433.90 rupees ($5.21) on Tuesday. Shares of ITC dropped nearly 3% to 421.70 rupees ($5.06) on Wednesday. BAT will remain ITC’s largest shareholder after the deal, according to LSEG data. Last year, BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal.

    BAT said it would increase its 2025 $1.5 billion share buyback program by £200 million as a result of the deal, which is not expected to have any other impact on its annual outlook.

  • BAT Responds to ITC Speculation

    BAT Responds to ITC Speculation

    British American Tobacco responded to the recent speculation relating to a potential disposal of part of its shareholding in ITC Limited. “BAT confirms that it is evaluating a possible disposal of a small part of BAT’s shareholding in ITC by means of an on-market trade,” the company said in a press release. “There can be no certainty that any such transaction will proceed, nor can there be any certainty as to the terms of any potential transaction. A further announcement will be made if and when appropriate.”

    The announcement was made on behalf of British American Tobacco by Caroline Ferland, Company Secretary, who likewise said the announcement contained inside information in relation to British American Tobacco for the purposes of Article 7 of the Market Abuse Regulation.

    “The securities referred to herein will not be, and have not been, registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act,” the company said.

    BAT is currently ITC’s top investor, with a 20.3% stake according to LSEG data. Last year BAT sold 436.9 million shares, or roughly 3.5% of ITC’s outstanding shares, for about $2 billion in what was India’s third-largest block deal ever.

  • ITC Misses Profit Estimate

    ITC Misses Profit Estimate

    ITC’s profit rose 3 percent to INR50.78 billion ($604.2 million) in the quarter that ended Sept. 30, missing estimates of INR51.14 billion, reports Reuters. The company cited subdued demand conditions, unusually heavy rains in parts of India and a sharp escalation in certain input costs, among other factors.

    Higher prices of raw materials, such as tobacco leaf and crude oil, also weighed on the consumer goods sector’s earnings for the July-September period. The increase in leaf tobacco prices was partly mitigated through improved mix, calibrated pricing and strategic cost management, according to ITC.

    In the cigarette business, net segment revenue was up 7.3 percent. ITC said the business continues to counter illicit trade and make strategic portfolio and market interventions “with focus on competitive belts to reinforce market standing.”

    The company also noted in a statement that recent stability in cigarette taxes, backed by deterrent enforcement, enabled volume recovery for the legal cigarette industry from illicit trade, leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector.