Introduction to the New Certification Policy
In June, the Philippines’ Department of Trade and Industry (DTI) will enact new e-cigarette certification guidelines under Philippine Standards (PS) to regulate product compliance more strictly, marking a significant change in the oversight of e-cigarette products.
Regulatory History
Issues such as smuggling and tax evasion have plagued the Philippine e-cigarette market. The new guidelines stem from Department Administrative Order (DAO) 22-06, issued in 2022, to combat these challenges with stricter certification requirements.
Guidelines Specifics
The upcoming guidelines aim to fill existing regulatory gaps, defining clear standards for manufacturing, importing, and distributing e-cigarettes, ensuring all products meet safety and quality standards.
Market Impact
- Certification Goals: Primarily, the new requirements aim to remove illegal and unsafe products, enhancing consumer protection.
- Market Dynamics: Compliance with these standards is expected to reshape the market, favoring companies that adhere to the new rules.
Government Role
The DTI, along with the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), collaborated on these guidelines to enforce them effectively across departments.
Transition and Compliance
- 8-Month Transition: The period from June 2024 to January 2025 will allow for phased compliance, assisting businesses in adapting to the new rules.
- Clearance Strategy: The goal is to purge the market of non-compliant e-cigarettes by January 2025.
Business Challenges and Opportunities
- Adaptation Challenges: Manufacturers and retailers must adjust to the new certification process and potentially modify their product lines.
- Regulatory Benefits: Compliant businesses might gain a competitive edge as non-compliant competitors are phased out.
Health and Safety
- Certification Benefits: Certified e-cigarettes are presumed safer, minimizing risks associated with unregulated products.
- DTI’s Health Commitment: The DTI’s stringent approach underscores its dedication to public health and safety.
Future Regulations
- Disposable Products Focus: The DTI is keeping a close eye on disposable e-cigarettes and may update guidelines accordingly.
- Guideline Amendments: Ongoing amendments might be necessary to address evolving market and health data.
Conclusion
The new certification policy in the Philippines is set to transform the e-cigarette market, prioritizing public health and creating a safer consumer environment. Its effects on the industry and public health will be scrutinized both locally and globally.
