Multiple Departments in The Philippines Launched A Joint Action: RELX, Flare And Other Four Brands Face Suspension Of Sales

Multiple departments in the Philippines launched a joint action: RELX, Flare and other four brands face suspension of sales

The Department of Trade and Industry (DTI) of the Philippines has filed a lawsuit against the manufacturers of four e-cigarette brands, Relx, Flare, Team X and Funky Monkey, for violating tax marking regulations. The trading and licenses of the relevant brands have been suspended, and violators will face fines of up to 5 million pesos (about US$90,000) and license cancellation.

Following the suspension of sales of five brands including LOST MARY by the Department of Trade and Industry (DTI) of the Philippines (Related reading: Breaking News: Philippines suspends sales of five e-cigarette brands including LOST MARY, Chillax), DTI took action again, filing lawsuits against four e-cigarette brands including Relx and suspending their trading, in order to continue to strengthen the supervision of illegal e-cigarette products.

On September 11, the Department of Trade and Industry (DTI) of the Philippines issued an announcement stating that in response to the instructions of Philippine President Ferdinand Marcos Jr. to expand and strengthen the fight against the smuggling and illegal trade of tobacco and e-cigarette products, the Department of Trade and Industry (DTI) of the Philippines, together with the Bureau of the Interior (BIR), the Bureau of Customs (BOC) and the Philippine National Police (PNP), conducted continuous operations, focusing on combating e-cigarette products without tax stamps, and strictly enforcing Republic Act No. 11900 (the "Atomized Nicotine and Non-Nicotine Products Management Act") to protect minors from e-cigarette products.

The agency said that in recent operations in Pasay City and Manila, law enforcement officers seized a batch of illegal e-cigarette products that violated DTI Executive Order No. 22-16, which prohibits packaging, labeling, displaying or marketing e-cigarette products with products that attract minors, as well as violating internal tax labeling requirements.

According to BIR Tax Memorandum No. 105-2023, all e-cigarette importers and manufacturers shall affix internal tax markings on their products by June 1, 2024.

In addition, the DTI filed formal charges against four e-cigarette manufacturers: Relx, Flare, Team X, and Funky Monkey, alleging violations of the internal tax marking requirements of RA11900. The trade and PS licenses of these brands, if issued, will be suspended until the formal charges are resolved. The penalty for selling or trading these products is a fine of 2 million pesos (about $35,000) for the first violation, 4 million pesos (about $70,000) for the second violation, and 5 million pesos (about $90,000) and cancellation of the license for the third violation.