Vape Guide to PACT Act compliance

The Prevent All Cigarette Trafficking (PACT) Act became law after Congress passed in 2009, going into effect on June 29, 2010. The PACT Act is intended to prevent illegal tobacco sales and tax avoidance in the United States. The PACT Act prohibits cigarettes, smokeless, roll-your-own tobacco products, and hemp vapor products from being shipped via the U.S. Postal Service and Federal Express.

Under the PACT Act, companies that sell and ship any tobacco or vapor product must register with both the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and with the tobacco tax administrators of the state.

ENDS and more products Included Under PACT Act

Most recently, at the U.S. federal level, the "Consolidated Appropriations Act of 2021" was signed into law on December 27, 2020 — part of the COVID-19 stimulus relief legislation. As part of this law, the PACT Act was amended to now include electronic nicotine delivery systems (ENDS) as part of the law and cigarettes, smokeless, roll-your-own tobacco, and hemp vapor products. Companies that sell ENDS for delivery in other states must comply with the PACT Act beginning March 27, 2021, per the National Association of Tobacco Outlets (NATO) bulletin.

What are ENDS?

An ENDS the law defines a product as "any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device, including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part or accessory of a device without regard to whether the component, liquid, part, or accessory is sold separately from the device." NATO pointed out this definition excludes alternative nicotine products, which are not sold in a liquid form and are not used with an electronic vaporizer device.

Who does the PACT Act affect?

Online sellers of vapor products such as e-cigarettes and hemp oil vapes need to be aware of new registration, reporting, shipping, packaging, recordkeeping, and other compliance obligations imposed by the Further Consolidated Appropriations Act of 2021 (FCAA). In late March 2021, sellers of vapor products, including devices that, through an aerosolized solution, deliver nicotine, flavor, or any other substance to the user inhaling from the device, components, liquids, parts, and device accessories, will be subject to the requirements of the Prevent All Cigarette Trafficking (PACT) Act, also known as the Jenkins Act.

The PACT Act includes traditional nicotine vapor products and non-nicotine vapor products like hemp oil vapor. Noncompliance with the Jenkins/PACT Act risks hefty civil fines ($5,000 to $10,000 per violation) and severe criminal penalties. The Jenkins/PACT Act has two primary requirements: registration and reporting; and compliance with delivery sales requirements for consumer sales. There is also a prohibition on mailing vapor products through the United States Postal Service (USPS) and Federal Express (FedEx) due to imposed regulations regarding the mailing of all vapor products.

Registration and reporting

Vape sellers subject to the Jenkins/PACT Act must register with the United States Attorney General via the Bureau of Alcohol Tobacco and Firearms and with state tobacco tax administrators. Also, by the tenth of each month, a report must be sent to each state tobacco tax administrator with a copy of the invoices for the previous month's sales or a memorandum of certain required invoice information.

Compliance with delivery sales requirements (B2C sales)

To maintain compliance as a vape retailer, all packages must weigh no more than ten pounds and are required to bear the following statement. "CIGARETTES/NICOTINE/SMOKELESS TOBACCO: FEDERAL LAW REQUIRES THE PAYMENT OF ALL APPLICABLE EXCISE TAXES AND COMPLIANCE WITH APPLICABLE LICENSING AND TAX-STAMPING OBLIGATIONS. " Moreover, the buyer's age must be verified through commercially available databases, and the shipment must be signed for by a person who presents proof of being of legal age to purchase the products. Historical records must also be kept of every delivery made to your buyers.

Sellers must comply with state, local and tribal laws, including any excise taxes due on the products, and have any required licenses. In addition to complying with age restrictions, sellers must also comply with state, local, and tribal payment obligations or legal requirements relating to the sale, distribution, or delivery of vapor products, including sales and use tax. Notably, many state and local requirements apply to such sales.

Frequently Asked Questions about the PACT Act

What is the PACT Act 2021?

Prevent All Cigarette Trafficking (PACT) Act Enhances the Requirements of the Federal Jenkins Act. Federal Law (15 U.S.C. Effective March 27, 2021, the PACT Act amended the federal definition of cigarettes to include electronic nicotine delivery systems (ENDS) (2021 Omnibus Appropriations Bill HR 133 section 601).

What did the PACT Act do?

The PACT Act is intended to prevent illegal tobacco sales and tax avoidance. It also prevents cigarettes, smokeless and roll-your-own tobacco products from being shipped via the U.S. Postal Service.

What does the PACT Act mean for vaping?

New Restrictions on Sales and Delivery of E-Cigarettes and Vaping Products. Whereas the PACT Act created restrictions on the delivery of cigarettes to consumers, the 2020 amendment expands the definition of "cigarette" to include an "electronic nicotine delivery system" or ENDS.

How do I get around the PACT Act?

1. Business-to-Business Shipping. The new amendments to the PACT Act prohibit businesses from shipping directly to customers via the United States Postal Service.
2. Find New Shipping Options.
3. Short-Term Losses, Long-Term Gains.
4. Build Local Networks.

Will U.P.S. ship vape products?

U.P.S. prohibits the shipment of Cigarettes or Little Cigars (as defined below) to consumers, regardless of the destination state. U.P.S. prohibits the shipment of all Vaping Products throughout its U.S. domestic network, including import and export, regardless of nicotine content and destination state.

Will FedEx Ship vape products?

FedEx's current rules do not allow the shipment of vaping products from business to business or directly to vapers, many of whom might have difficulty obtaining them if they live in rural areas. The letter is something of a last-ditch effort, a desperate ask.

Is it illegal to ship vape juice?

The US Bill Banning Vape Mail is a ban on all shipments of vaping products by the US Postal Service. The S 1253: "Preventing Online Sales of E-Cigarettes to Children Act" has recently passed the house and was signed into law by President Trump on December 27.

Can I ship vape juice to a friend?

On December 21, 2020, Congress passed a bill making it illegal to ship vapor products using USPS. While not ideal, shipping vapor products by mail would still be doable under private shipping companies, provided they provide signature verification for recipients over 21.

Is it legal to buy vape juice online?

In early April, Federal law will forbid the sale of nicotine vaping devices and e-liquids unless the buyer's age can be verified. The legislation is called the Preventing Online Sales of E-Cigarettes to Children Act. DHL already prohibits the shipping of vaping and nicotine products in the U.S.

Will online vape sales be banned?

Since April 5, 2021, you can no longer purchase any vape-related product online and have it shipped directly to you. It also means there will be much tighter restrictions, like age verification, which many companies already do in the future.

Who does the PACT Act affect?

The PACT Act features several major components: it regulates the mailing of cigarettes and smokeless tobacco products to consumers through the U.S. Postal Service; it adds new requirements for registration, reporting, delivery, and recordkeeping, including a List of Unregistered or Non-Compliant Delivery Sellers.

What does the PACT Act cover?

The requirements of the PACT Act now apply to all Electronic Nicotine Delivery Systems, or "ENDS," which are defined as: "any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance; to the user inhaling from the device."

What did the PACT Act do?

The PACT Act is intended to prevent illegal tobacco sales and tax avoidance. It also prevents cigarettes, smokeless and roll-your-own tobacco products from being shipped via the U.S. Postal Service.

How will PACT Act affect vape shops?

The PACT Act applies to anybody who sells, transfers, or ships ENDS for profit. Therefore, ENDS retailers and delivery services that ship ENDS (collectively "ENDS merchants") would fall under the Act. ... Delivery services must provide such information to the A.T.F. upon request.

How do you comply with the pact Act?

Pay all applicable federal, state, local, or Tribal tobacco taxes and affix any related tax stamps before delivering any cigarettes, smokeless tobacco products, or e-cigarettes to any customer in the state they're located.

Does the PACT Act include CBD?

There are no exemptions for hemp or CBD vapes. The Prevent All Cigarette Trafficking Act ("PACT Act") imposes stringent rules on online sellers of cigarettes. The Appropriations Act now extends the PACT provisions by amending the definition of "cigarette" to include ENDS. March 23, 2021

Is it illegal to ship vape juice?

The US Bill Banning Vape Mail is a ban on all shipments of vaping products by the US Postal Service. The S 1253: "Preventing Online Sales of E-Cigarettes to Children Act" has recently passed the house and was signed into law by President Trump on December 27. February 25, 2021

Will online vape sales be banned?

Since April 5, 2021, you can no longer purchase any vape-related products online and have them shipped directly to you as a consumer. It also means there will be much tighter restrictions, like age verification, which many companies already do in the future.

Buying Vapes From Lowkey Trading Company

Lowkey Trading is an online wholesale vape distributor in the United States of America. We are 100% compliant with the PACT Act and use shipping carriers to deliver goods to valid addresses using supported carriers.

Our account registration form requires that you provide a copy of all of the licenses (state, county, and local) legally required for your company and the applicable store to operate. Licensing requirements differ from state to state, but it is likely that, at the very least, you are required to have a business license(s) and one or more tobacco or vapor products license(s).

Please have all necessary materials in hand and ready to upload when you complete your registration.