Comment | Industry insiders talk about the 1022 Electronic Cigarette Seizure Incident in the United States: Top companies are the focus of law enforcement, and electronic cigarette brands should obtain STN numbers as soon as possible

Comment | Industry insiders talk about the "1022 Electronic Cigarette Seizure Incident in the United States": Top companies are the focus of law enforcement, and electronic cigarette brands should obtain STN numbers as soon as possible

In response to the "1022 Electronic Cigarette Seizure Incident in the United States", in order to obtain comprehensive analysis and professional insights from multiple perspectives, Two Up First contacted multiple industry professionals to obtain more information.
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On October 22nd, the US Food and Drug Administration (FDA) announced a partnership with the US Customs and Border Protection (CBP) to administratively detain approximately 3 million unauthorized electronic cigarette products, with an estimated retail value of $76 million (click to read the article). To obtain comprehensive analysis and professional insights from multiple perspectives, Two Up 2Firsts contacted multiple industry professionals to obtain more information.

 

 

Logistics and freight forwarding industry insiders: The inspection focus of FDA and CBP is different, and electronic cigarette brands should obtain STN numbers as soon as possible

 

A freight forwarding industry insider who has long-term business dealings with the US market told 2Firsts that after the seizure incident, logistics freight forwarders have made special adjustments in their import operations and are still observing the situation. He mentioned that the main adjustment is reasonable declaration. "After being educated by the market in the future, the phenomenon of taking over everything in the past will be reduced

 

In the face of strict compliance requirements in the United States, industry insiders point out that the focus of FDA and CBP inspections is not quite the same. "FDA inspections tend to focus more on whether the taste has been declared to FDA and whether STN codes can be provided, while CBP inspections focus more on whether the quantity is underreported and whether it meets the value, in simple terms, whether there is tax evasion

 

When it comes to ensuring the compliance and smooth customs clearance of imported goods, industry insiders say that as regulation becomes increasingly strict, compliance declaration becomes even more important. He suggested that in the future, brands of flavored electronic cigarettes should apply for FDA PMTA as soon as possible and obtain STN first. In the declaration, it is more inclined to use one's own importer in the United States to pay taxes reasonably and avoid tax risks.

 

 

Compliance industry insiders: FDA is paving the way for the full implementation of STN Act and will increase its crackdown efforts in the future

 

In response to this incident, a compliance industry insider familiar with the PMTA review mechanism said, "The FDA's action this time is not very surprising. Because the FDA has already introduced STN registration." He said that this is paving the way for the full implementation of the STN bill by the FDA, indicating stricter regulation of the electronic cigarette market in the future.

 

Regarding the details of the FDA's seizure operation, industry insiders pointed out that the current FDA notification indicates that most unauthorized electronic cigarettes are intentionally falsely reported as items unrelated to electronic cigarettes, which is a common "grey customs" method in the industry.

 

At the same time, he believes that the joint action of FDA and CBP aims to deter the entry of illegal electronic cigarettes.

 

The FDA emphasizes its ability to work with CBP to identify and intercept a large number of illegally declared goods. With the implementation of the STN number bill, the possibility of illegal gray clearance will be significantly reduced, and all goods must be declared with the STN number normally in order to verify with the submitted PMTA information and ensure legal entry, "he added.

 

Industry insiders predict that the FDA will continue to intensify its crackdown, especially on products that may attract teenagers. Relevant enterprises should actively apply for PMTA and ensure that their products do not attract young people to avoid becoming a focus of regulatory crackdown.

 

Testing agency personnel: Top companies are easily targeted, and companies should actively adopt compliance measures

 

Ms. Liu, the sales director of Weber Testing, told Two First that the FDA's major action means that the testing and regulation of electronic cigarette products in the future is an important issue, involving product quality, safety, and the maintenance of market order.

 

In recent years, due to geopolitical reasons and the proliferation of Chinese companies, the FDA's actions are somewhat aimed at protecting the country's trade interests, making it easy for top companies to be targeted. As a testing agency, we still emphasize that companies actively cooperate and comply with laws and regulations, "she added.

 

Mr. Luo from Lixun Testing pointed out that some companies currently have problems when submitting PMTA applications. "Some companies submit a lot of non-standard and incomplete information when applying for PMTA, which leads to failure in review and requires constant resubmission, resulting in too much time cost.