According to the Associated Press, e-cigarette companies imported hundreds of millions of dollars worth of disposable products from China to the United States without paying taxes and import duties.
Last week, U.S. authorities confiscated 1.4 million unauthorized disposable e-cigarette products at Los Angeles International Airport with an estimated retail value of more than $18 million. The products were mistaken for toys, shoes and other items.
Records show that manufacturers of disposable e-cigarettes often mislabel their shipments as battery chargers, flashlights and other items. Critics blame poor regulation. Eric Lindblom, a former Food and Drug Administration official, said: “Regulations on single-use products have been very weak, which makes the problem increasingly serious. .”
It is reported that Heaven’s Gifts, the parent company of Shenzhen Meiqi, has previously introduced how to help customers avoid import fees and taxes. Meiqi produces the popular Elf Bar and EB brands.
Additionally, the company’s website promotes “discreet” shipping methods, such as mislabeling e-cigarette shipments, and claims the products are of low value.
Another strategy appears to be to ship e-cigarettes by air rather than sea. Airlines are not required to disclose cargo details like ocean carriers.
U.S. tobacco companies have complained that their e-cigarette products cannot compete with such cheaper disposable e-cigarettes. Altria Group and Reynolds recently filed lawsuits against importers of disposable e-cigarettes in California and the International Trade Commission, respectively.
Shortly before China banned e-cigarette flavors last year, flavored disposable e-cigarettes began flooding into the United States. China's e-cigarette manufacturing industry produces the world's largest e-cigarettes, worth about $28 billion, and the United States accounts for nearly 60% of China's e-cigarette exports, according to the China Electronics Chamber of Commerce.
Authorities encourage these exports while restricting the country's domestic e-cigarette business.
