A growing industry

The value and volume of vape products being smuggled into the country have reached alarming levels.

According to the Bureau of Customs, it has seized P6.5 billion worth of smuggled vape products, mostly from China, in 36 operations carried out between October 2023 and August 2024 as part of the bureau’s intensified campaign to combat the illegal importation of vape products.

Minimal Government Thinkers president Bienvenido Oplas Jr. said that the government is losing around P5 billion annually from illicit vape products.

Authorities expect the situation to worsen in the coming months amid the emergence of various new forms of smuggling that illegal traders employ to avoid paying the required taxes.

According to a study conducted by the US and India-based think tank Grand View Research, the Philippine e-cigarette and vape market size was valued at $113.6 million in 2023. The same study said that the local vape industry is estimated to grow at a compound annual growth rate of 18.7 percent from 2024 to 2030.

This growth trajectory reflects the increasing popularity of vaping, especially among young Filipinos. The availability of diverse flavors and product types, from e-liquids to vape pens, which cater to a wide range of preferences, have contributed to enhancing their consumer appeal.

The US Centers for Disease Control and Prevention noted that e-cigarette marketing and advertising, the availability of appealing flavors, social influences, and the effects of nicotine all play a role in why the youth start and/or continue to vape. Some e-cigarettes also cost less than regular cigarettes, which may also contribute to their growing popularity.

The Philippine government has apparently already accepted that vape products are here to stay and so it has crafted laws and regulations aimed at controlling the sale and distribution of vape products to protect public health and also collect proper taxes from their manufacturers and suppliers.

Republic Act 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, requires manufacturers or importers to register their products and secure licenses to operate. They are also required to adhere to packaging standards and pay duties and taxes.

Some vape manufacturers and suppliers say they have yet to secure their Philippine Standard Quality and/or Safety Mark and Import Commodity Clearance Sticker from the Department of Trade and Industry, because of what they describe as a cumbersome process. As a result, many of them have resorted to operating illegally.

However, according to health advocacy group SafeVape PH, the fact that some companies have managed to get their required permits demonstrates that claims the accreditation process was almost impossible to comply with are not true.

Just recently, the Department of Trade and Industry’s (DTI) Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products approved the application for accreditation of Guangdong Boopower Industry Co. Ltd. and its local agent One Tech Ventures OPC.

SafeVape PH pointed out that it is imperative that everyone in the vape industry comply with the requirements of the law to ensure the health and safety of the general public, especially their clients who are mostly young adults.

The Bureau of Internal Revenue (BIR), meanwhile, has been running after illegal retailers and resellers to discourage vape smugglers from bringing their products into the country.

BIR commissioner Romeo Lumagui Jr. said that illegal vape dealers continue to ply their illicit trade despite multiple warnings, prompting them to conduct regular raids and product seizures.

However, because of the potential to make huge money, many suppliers still dare to operate without the necessary licenses, undermining government regulations and posing risks to consumers.

But getting the necessary license isn’t enough. Just recently, the DTI filed cases against four vaping brands and suspended their licenses for alleged violations of RA 11900, which mandates that all vape or tobacco products must adhere to specific packaging requirements, including displaying proper health warnings as well as tax stamps. The department earlier suspended the vape products of six others for similar violations.

By fostering a regulated environment, the Philippines can support a sustainable vape market that prioritizes consumer safety while allowing legitimate and law-abiding businesses to thrive.

Changing landscape

Davao del Norte is also called the banana capital of the Philippines.

And why not? It is the country’s leading producer of bananas and is host to a number of banana plantations, including those of multinationals DOLE and Del Monte, and local producers Lapanday, Tadeco and Marsman.

But tourism is also a major part of its economy. It is where we find the Island Garden City of Samal with its stunning beaches and natural attractions, including the Monfort Bat Sanctuary, which is said to be home to a large colony of 2.3 million rousette fruit bats that cover 75 percent of the ceilings and walls of the 245 ft-long cave. It holds the Guinness World Record for the largest colony of Geoffroy’s rousette fruit bats.

Davao del Norte has two congressional districts, the second one being represented in Congress by Alan Dujali, who is running for governor of the province despite the fact that he still has one term left. Dujali will be challenging incumbent governor Edwin Jubahib for the position.

Jose Manuel Lagdameo, brother of Special Assistant to the President (SAP) Antonio Lagdameo Jr., is eyeing the second district congressional seat. Both are, of course, scions of the influential Floirendo family. JM is said to be running unopposed, and his move is said to signal the family’s re-entry into the political arena.

With Dujali facing stiff competition from Jubahib, who is seeking re-election, and JM Lagdameo running unopposed, observers note that this sets the stage for a potential transformation of the political landscape in Davao del Norte.

Why Dujali is running for governor has surprised many in the province.

His sister, Ella Dujali-Mangubat, defended the decision of her elder brother to run for governor instead of seeking re-election for his last term as congressman amid talks that he could have been pressured not to run against JM Lagdameo, by saying in a Facebook post that it is for the greater good.

There are rumors Dujali was promised a generous budget if he wins the governorship. Adding more intrigue, Jubahib was suspended by the Office of the President twice this year, in April and June.

For sure, whoever wins, Mindanao has the Palace’s attention.

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