Stronger vape regulation sought to protect consumers, boost revenues

MANILA, Philippines — Amid the rampant smuggling and illicit trade of e-cigarettes, a consumer group is pushing for stronger regulation of the vape industry to safeguard consumers from potential harm and maximize government revenue from legal sales.

Karry Sison, convener of Bantay Konsyumer, Kalsada, Kuryente (BK3), said even with policies and regulations in place under the Vaporized Nicotine and Non-Nicotine Products Regulation Act, – which requires vape products to carry health warnings on their packaging and mandates safeguards to keep them out of children’s reach – they are hardly implemented.

“Health warnings do not appear in most vape products since these are usually smuggled into the country. Since these products enter the market illegally, there are also no safeguards in place to ensure that their ingredients are safe and regulated,” Sison said.

“Lack of proper oversight has allowed harmful substances to find their way into vape liquids, endangering the health of consumers. Many users, particularly the youth, are unaware of the potential risks associated with vaping,” she added.

A commissioned Pulse Asia survey conducted in the last quarter of 2023 showed that majority or 57 percent of Filipinos are aware of the illegal sale of cigarette products in the country. According to the results, consumers are drawn to these products primarily due to their lower prices. Many are worried these would lead to health risks (46 percent), spike in the use of cigarettes (41 percent), and lower tax revenues (11 percent).

Assistant Secretary Amanda Nograles, supervising head of the Department of Trade and Industry (DTI) Consumer Protection Group, said the agency is dedicated to overseeing the registration of vape products and ensuring they do not get in the hands of minors.

At present, importers of vape products can obtain a certificate of exemption, Nograles said. But to bolster regulation, the DTI is implementing the mandatory certification and registration of vape products beginning June 5.

This means manufacturers and importers of vape products will be required to secure a Philippine Standard (PS) license and Import Commodity Clearance (ICC), which both attest to the quality and safety of products. During this process, the DTI will check if there are harmful substances both in the heated tobacco product and the device.

“That immediately plugs the faucet. We’ll be able to check whoever is not registered, whoever is not certified, and they can no longer enter our market. By January 2025, we’ll have a market clearing process then we will remove all vape that is not registered,” Nograles said.

Pending the mandatory registration, vape products are considered illegal when they are sold or promoted to minors, have nicotine levels beyond 65 mg per ml, or are smuggled. Nograles noted a remarkable 373 percent increase in apprehensions this year compared to last year.

Meanwhile, the Bureau of Internal Revenue (BIR) disclosed that the government has so far lost approximately P6.6 billion in excise taxes from the tobacco industry this year, primarily due to illicit trade of tobacco and vape products and the growing popularity of e-cigarettes.

“Illicit trade deprives the Philippine government of much needed tax revenue and cheats everyone: society, consumers, and legitimate businesses. Profits of legitimate businesses are compromised, public health goals are undermined, and taxes due the government to help the economy are gravely affected,” said Venus Gaticales, chief of BIR’s Excise Large Taxpayers Field Operations Division.

Gaticales said beginning June 1, the BIR will start affixing “excise stamps” on vape products to streamline the process of verifying if the requisite taxes have been duly settled.