We Are Working On A Solution
Due to current legislation we are currently working on a solution with a regional shipper to offer shipping. Since it is illegal to use USPS the cost of shipping vape products has become much more expensive. We are seeking to negotiate a flat rate shipping options for Texas residents.
The PACT Act
The Prevent All Cigarette Trafficking (PACT) Act, as amended in 2021, subjects vapes and other Electronic Nicotine Delivery Systems (ENDS) to strict regulations originally designed for cigarettes and smokeless tobacco. The primary goal is to prevent online sales to minors and ensure tax compliance.
Key provisions and impacts of the vape PACT Act:
USPS Mail Ban: The Act bans the U.S. Postal Service (USPS) from mailing all vaping products, including e-cigarettes, e-liquids (with or without nicotine), components, parts, and accessories. There are limited exceptions for business-to-business (B2B) shipments between legally licensed entities, but the process is complex and impractical for many small businesses.
- Private Carrier Bans: Major private carriers like FedEx, UPS, and DHL have also voluntarily implemented their own policies to stop shipping vape products due to the increased complexity and liability. This has created a significant logistical challenge for online retailers, forcing them to find specialized, often more expensive, regional carriers.
- Registration Requirements: Any person or business that sells, transfers, or ships ENDS for profit in interstate commerce must register with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the tobacco tax administrators of every state into which they ship.
- Age Verification: Online sellers must use a commercially available database to verify the customer's age at the time of purchase. Additionally, all delivery sales require an adult (21+) with a valid ID to be present to sign for the package upon delivery.
- Tax Compliance: Sellers are required to collect and pay all applicable federal, state, local, and tribal excise taxes and sales taxes. Monthly reports detailing all shipments, including the recipient's name, address, and product quantities, must be filed with state tax administrators.
- Recordkeeping: Businesses must maintain detailed records of all delivery sales for a period of four years.
- Broad Definition: The law's definition of ENDS is very broad, covering almost all vaping products, liquids, and accessories, regardless of whether they contain nicotine, flavor, or any other substance (e.g., CBD/THC vape products).
- Penalties: Non-compliance can result in severe civil penalties (up to $10,000 per violation or 2% of gross sales) and criminal penalties, including imprisonment. The ATF maintains a non-compliant list, and companies on it are barred from using any common carrier.
