USPS Revokes The Shipping Exemption For Demand Vape

USPS Revokes The Shipping Exemption For Demand Vape

According to a Reuters report on August 11th, letters reviewed by Reuters indicate that the United States Postal Service (USPS) has launched a crackdown on non compliant vape distributors who use its services for commercial transportation.
These previously undisclosed letters indicate that USPS has sent a letter to Demand Vape, a major distributor based in New York, prohibiting its use of USPS services. The reason is that the New York City Department of Law, which represents the New York City government and officials in handling legal affairs, provided evidence that the company’s transportation behavior violated the law.
Reuters reported that USPS’s action could benefit tobacco companies such as Altria and British American Tobacco. For many years, these companies have been fighting against non compliant vapes mainly from China.

Non compliant vapes have not obtained authorization from the US Food and Drug Administration (FDA), and obtaining such authorization is a necessary condition for legal sales in the world’s largest smoking substitute market, the United States.
On July 15th, USPS stated in a letter to Demand Vape that it had revoked its mailing exemption in July after receiving evidence that the vapes it transported lacked FDA authorization and violated local taste bans.
Demand Vape stated that it has complied with relevant laws and is challenging the revocation decision. The company also stated that this industry is in a “regulatory gray zone” with only a few products authorized by the FDA, which cannot meet consumer needs.”We oppose any description of Demand Vape as opaque, illegal, or untrustworthy.”

Limited exemption situations

Currently, the US Food and Drug Administration has only approved 39 types of vape products. However, due to difficulties in regulatory control, unauthorized vape devices are still widely circulated.
According to a 2021 law, USPS is restricted from directly mailing vapes to consumers, conducting international shipping, and in most other cases mailing vapes.
The limited exemption includes domestic transportation between enterprises, which requires “postal exemption” and the transported products must comply with relevant laws.
Some other large courier companies, including FedEx, refuse to transport vapes. DHL only provides services for enterprise transportation with prior approval.
Eric Proshansky, Deputy Director of the Litigation Department of New York City, told Reuters that USPS has provided the New York City Department of Law with a list of other e-cigarette companies that have been granted mail immunity, so that the department can assess whether to challenge these companies based on legal requirements.
This may further reduce the number of transporters available in the non compliant vape industry. Other options, such as using small carriers or directly handling freight, often have higher costs.

The pressure is increasing day by day

British American Tobacco estimates that the non compliant vape market will be worth approximately £ 6 billion (approximately $8.1 billion) in 2024. However, the pressure faced by this market is increasing day by day. The import tariffs and port detention measures in the United States by 2025 have reduced the import volume of non compliant vapes.

As part of the May crackdown, the FDA also sent letters to 24 US intermediaries, including distributors critical to the non compliant vape market.
Tony Abboud, Executive Director of the Vapor Technology Association representing companies including Demand Vape, stated that this has resulted in empty shelves in vape stores.
He said that the revocation of the exemption by USPS would further harm the vape industry in the United States.