On September 11, 2024, the Department of Trade and Industry (DTI) in the Philippines filed formal charges against four e-cigarette brands—Relx, Flare, Team X, and Funky Monkey—for violating tax marking regulations under RA 11900. These brands have had their sales and Philippine Standard (PS) certification suspended pending the resolution of the cases.
Tax and Labeling Violations by E-Cigarette Brands
During enforcement operations in Pasay and Manila, authorities seized illegal e-cigarette products that violated DTI Administrative Order No. 22-16, which prohibits misleading packaging and flavor descriptions that might appeal to minors. These actions are part of a larger effort to enforce compliance with the Vaporized Nicotine and Non-Nicotine Products Regulation Act (RA 11900), which regulates the labeling, marketing, and sale of e-cigarette products.
Additionally, the brands were found in violation of tax marking regulations. BIR Memorandum 105-2023 mandates that all e-cigarette manufacturers and importers must affix tax stamps to their products as of June 1, 2024. The failure to comply with these tax rules prompted legal actions by the DTI.
Penalties for Non-Compliance with E-Cigarette Regulations
The DTI has outlined severe penalties for selling or trading e-cigarette products that do not meet regulatory standards:
- First offense: A fine of PHP 2 million
- Second offense: A fine of PHP 4 million
- Third offense: A fine of PHP 5 million and cancellation of business permits
These penalties aim to strictly enforce RA 11900, designed to protect minors and ensure legal compliance in the growing e-cigarette industry.
Government’s Intensified Crackdown on E-Cigarette Sales
Following directives from President Ferdinand Marcos, the DTI has ramped up efforts to combat illegal e-cigarette sales and smuggling. The DTI is working closely with the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Philippine National Police (PNP) to prevent the sale of e-cigarette products without proper tax stamps. Leading this operation is the Office of Special Mandate for Vape, Non-Nicotine Products, and Novel Tobacco Products (OSMV), which ensures that the industry complies with all relevant laws.
Previous E-Cigarette Suspensions in the Philippines
This recent ban follows earlier actions against several other e-cigarette brands, including Shft & Dr Freeze, Aerogin & Don Bars, Chillax, Black Elite, and Lost Mary. Three of these brands had previously received Philippine Standard (PS) certification before being suspended for failing to meet ongoing regulatory requirements. As of September 12, 2024, only X-VAPE retains a valid PS certification, allowing it to continue trading without restrictions.
FAQs
Why were Relx, Flare, Team X, and Funky Monkey banned in the Philippines?
These four brands were suspended due to violations of tax marking requirements under RA 11900 and non-compliance with DTI Administrative Order No. 22-16, which bans labeling designed to appeal to minors.
What is RA 11900, and why is it important?
RA 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, is a law regulating the manufacture, distribution, and sale of e-cigarettes in the Philippines. It aims to safeguard public health, particularly by preventing minors from accessing e-cigarettes and ensuring that manufacturers comply with strict tax and labeling requirements.
What penalties do e-cigarette manufacturers face for violating these regulations?
Manufacturers and retailers found violating RA 11900 face escalating fines, starting at PHP 2 million for a first offense, PHP 4 million for a second offense, and PHP 5 million for a third offense, with the possibility of having their business permits revoked.
What is the significance of BIR Memorandum 105-2023?
The BIR Memorandum 105-2023 requires all e-cigarette importers and manufacturers to affix tax stamps on their products as of June 1, 2024. This ensures proper taxation and helps combat illegal e-cigarette sales in the Philippines.
Which other e-cigarette brands have been suspended or banned in the Philippines?
Aside from Relx, Flare, Team X, and Funky Monkey, other brands like Shft & Dr Freeze, Aerogin & Don Bars, Chillax, Black Elite, and Lost Mary have faced similar suspensions due to non-compliance with regulatory standards.
Which e-cigarette brands are currently allowed to sell in the Philippines?
As of September 12, 2024, only X-VAPE has a valid Philippine Standard (PS) certification, allowing it to legally sell its products. Other brands are under suspension or awaiting case resolution.
How is the Philippine government enforcing e-cigarette regulations?
The government, through the DTI, BIR, BOC, and PNP, is cracking down on illegal e-cigarette sales by conducting enforcement operations, seizing non-compliant products, and filing charges against violators. These agencies work together to ensure compliance with RA 11900 and other related laws.
