Philippines suspends sales of 4 brands
Philippines suspends sales of 4 brands including RELX, FLARE, etc
According to DTI News, in order to fulfill President Ferdinand Marcos' directive to expand and strengthen efforts to combat smuggling and illegal trade of tobacco and e-cigarette products, the Department of Trade and Industry (DTI), in collaboration with the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Philippine National Police (PNP), continues to crack down on e-cigarette products without tax stamps and maintain the momentum of implementing RA11900 (i.e. the Nebulized Nicotine and Non Nicotine Products Management Act) to prevent minors from accessing e-cigarette products.
The recent actions in Pasay and Manila have confiscated illegal electronic cigarette products, violating DTI DAO 22-16, which prohibits packaging, labeling, displaying, or marketing electronic cigarette products with flavors that appeal to minors, and also violates domestic tax labeling requirements.
According to Circular 105-2023 of the BIR Tax Memorandum, all electronic cigarette importers and manufacturers must affix domestic tax stamps on their products before June 1, 2024.
The Ministry of Trade and Industry has also filed formal charges against four other electronic cigarette manufacturers: Relx, Flare, Team X, and Funky Monkey, accusing them of violating the domestic tax financial labeling requirements of RA11900. Until the formal charges are resolved, the trade of these brands and their PS licenses (if issued) have actually been suspended. The fine for selling or trading these products is: 2 million Philippine pesos for the first violation, 4 million Philippine pesos for the second violation, 5 million Philippine pesos for the third violation and revocation of license.#philippines
The suspension of sales for RELX, FLARE, and two other e-cigarette brands is a significant step taken by the Philippines to enforce compliance with RA11900, aimed at regulating nicotine products. The Department of Trade and Industry (DTI), alongside several government agencies, is intensifying efforts to combat the smuggling and illegal trade of tobacco and vaping products. Recent raids in Pasay and Manila led to the confiscation of e-cigarette products that lacked the necessary tax stamps and violated packaging laws. This is part of a broader initiative to protect minors from accessing harmful substances. In line with Circular 105-2023, importers and manufacturers must ensure that all electronic cigarette products are properly labeled with domestic tax stamps by June 1, 2024. The firms facing sanctions, including RELX and FLARE, may face heavy fines for non-compliance, starting from 2 million Philippine pesos for first violations to the possibility of license revocations. This crackdown will help create a safer environment by preventing underage access to e-cigarettes and establishing accountability in the vaping industry in the Philippines.
