» Industry Changes

Industry Changes That Affect You

A lot has been changing in the vape industry throughout the last year. Many of these changes affect you, the consumer the most. We wanted to compile a list that briefly summarizes these changes so that you are informed of the current situation. These rules and regulations are always changing, so check back to stay updated.

Flavor Ban – Effective February 2020

This FDA policy enforces the removal of any flavored vape products other than tobacco and menthol. In some states, even menthol is considered a flavor and is banned as well. This ban was created to stem the rise in youth vaping. Many companies produce flavors such as cotton candy and chocolate cake to attract young people. Unfortunately, fruit and other flavors such as vanilla were also banned striping responsible companies from supplying adult vapers with flavors that they enjoy.

State Vape Bans

Some states have banned the online sale of vape products completely. These states are Arkansas, Maine, New York, Utah, and Vermont. The city of San Francisco also prohibits the sale of vape products online.

Excise Tax

You may have noticed higher taxes on your orders. Taxes on specific products usually called excise taxes are applied for various reasons. The main reasons are to raise money for the taxing authority and to change the behavior of those being taxed. For most governments, the cigarette tax is a significant revenue source and governments become dependent on the revenue, if smoking decreases there’s a financial shortfall that must be made up with some other source of income, or else the government must reduce spending.

Since many smokers have transitioned to e-cigarettes the government has decided to tax these products to make up for lost revenue. These taxes can be based on a percentage of the wholesale price, per ml of e-liquid, or per cartridge. For example, California’s excise tax is 56% of the wholesale price, whereas New Jersey charges .10 cents per ml, and Kentucky charges $1.50 per cartridge. For more info go to https://www.greensmartliving.com/state-excise-taxes/

Signature Required Shipping

Included in the PACT Act is the requirement that all online and phone orders be shipped with a signature required at delivery. The goal of this rule is to eliminate the possibility of minors ordering and receiving products online. Unfortunately, this comes at a cost. We will still offer free shipping on orders over $70, but the customer will be responsible for covering the signature required fee. This will be a flat $7.99 attached to all orders. For orders under $70 shipping will be $15. For more info go to https://www.greensmartliving.com/shipping-changes/

Shipping Ban – Effective April 2021

Former President Trump signed the 2021 Appropriations bill into law on December 27, 2020. Included in that 5,000+ page bill was the language that adds “electronic nicotine delivery systems” (or “ENDS”) to shipping regulations enacted by The Jenkins Act and The Prevent All Cigarette Trafficking Act (PACT Act).

The practical effect of the new law is a ban on shipping vapor products through the USPS. Following suit UPS, FedEx, and DHL have all decided to ban the shipment of vapor products as well. This leaves companies like GreenSmartLiving scrambling to find ways to provide customers with the products they need. We are working tirelessly to come up with a solution and believe we will have one shortly. For more info go to https://www.greensmartliving.com/shipping-changes/

PMTA

A premarket tobacco application (PMTA) is an application that must be reviewed and approved by the Food and Drug Administration before a new tobacco product can be legally marketed in the United States. While regulation of the industry is welcomed the FDA has made this process so expensive that 80% of vape companies will not be able to financially afford this process. Submission of a PMTA that includes all the aspects required by the FDA will cost companies anywhere from $300,000 up to over $1,000,000 and there is no guarantee that you will still get market approval.

For a company like GreenSmartLiving, this is very difficult to manage. However, we are following through with the PMTA process no matter how much strain it puts on our company financially. We have been in the industry for over a decade and will do everything we can to remain in the market and continue selling you the products you love.

We urge all of you to contact your local members of Congress to voice your opinion about all of the new regulations. They are trying their best to kill the industry because it disrupts their donor’s business (big tobacco). More and more regulations are expected to created and it is up to us to ensure the availability of reduced-harm alternatives to smoking.

Anything we can help you with?