The Largest E-cigarette Graveyard in 2025: The US Customs Service

Want to send electronic cigarettes to the United States? "Three Tickets per Container" has become the new norm. When shipping to the US, each batch of goods comes with a "suspected inspection" attribute - the first batch: seized; the second batch: under seizure; the third batch: ready for seizure. When electronic cigarettes enter the US, they first have to pass through the "Valley of Death", and then the business negotiations can take place.
The regulatory model of the world's largest electronic cigarette market is shifting from "special crackdowns" to "regular and institutionalized" management. This round of regulatory storm covers multiple links such as logistics, ports, retail, and criminal activities, and has a profound impact on the industry landscape.
Federal Level: Multi-departmental collaboration, with both law enforcement and institutional building tackled simultaneously.
August: Blocking logistics loopholes
Key event: The United States Postal Service (USPS) revoked the business mail exemption qualification of the major distributor Demand Vape.
Focus: This move aims to cut off the transportation path of unauthorized electronic cigarette products at the logistics source, sending out a clear signal of strengthening supervision of the upstream link.
September: Law enforcement actions reach a climax
Key event 1: The FDA and the Customs and Border Protection (CBP) jointly seized nearly 4.7 million illegal products in Chicago, with a retail value of up to $86.5 million, officially called "the largest seizure in history".
Key event 2: The Drug Enforcement Administration (DEA) launched the "E-cigarette Tracking Operation", seizing approximately 2.36 million products and arresting 106 people, cracking down on the distribution network involving illegal substances.
Focus: Subsequently, the Department of Justice filed civil injunction lawsuits against several related enterprises, demonstrating a complete law enforcement chain from seizing products to pursuing legal responsibility.
End of September: Promoting compliance at the retail level
Key event: The FDA launched a compliance initiative for approximately 300,000 retail terminals nationwide, sending a list of compliant products and guiding the market to actively remove illegal goods.

Focus: The regulatory focus shifted from cracking down on illegal production to regulating terminal sales, aiming to purify the retail market.
At the state level: Regulations have been implemented intensively, and criminal penalties and the directory system have become the focus.
In line with the federal actions, several states have introduced more targeted local regulations within the past two months.
California (August 25): Emergency approval of the "flavor-free tobacco list", allowing only the sale of electronic cigarette products without distinctive flavors, causing a huge impact on the flavor market.
New York State (September 3): Initiated the "largest-scale" law enforcement operation, with the law enforcement scope clearly covering upstream and midstream suppliers for the first time, and proposing 38 criminal charges, significantly enhancing the deterrent effect.
Mississippi State (October 1): Implemented the "monthly updated directory" system, providing a dynamic basis for the legal sale of products, and requiring retailers to respond promptly to the requirements for product removal.
Arkansas and Texas: Focus on packaging restrictions and product origin respectively, explicitly prohibiting the use of packaging that attracts minors and limiting components from "foreign competitor countries".
FDA data shows that currently about 54% of products on the market have not received formal authorization and are at risk of being removed.
With the continuous improvement of the regulatory system at both the federal and state levels, 2026 is expected to become a key turning point for reshaping the landscape of the US e-cigarette industry and achieving full regulation.