Chinese Vapor Products Are Leaving American Businesses Holding the Bag; Fears of Seizures and Shutdowns Loom

Those in the Vapor Products Industry are fearing the worst after RJ Reynolds Tobacco Company compelled the International Trade Commission (ITC) to investigate Heaven Gifts, the owner of both Geek Bar and Elf Bar, along with other products distributed by RZ Smoke Inc in Suffield, Connecticut, Punta Gorda, Florida's SAFA Goods LLC, and the Houston-based Texas Central Distribution LLC and Unishow USA Inc.

Several distributors and retailers have already faced consequences for their alleged cooperation with illegal Chinese vape manufacturers, including Happy Distro in Dallas, D&A Distribution in Savannah, Buffalo's ECTO World LLC d/b/a Demand Vape and Magelian Technology Inc, Headway Funding Inc. d/b/a Jewel Distribution of Agoura Hills, California, and Midwest Goods Inc. d/b/a Midwest Distribution Illinois in Bensenville, Illinois.

Specifically, RJ Reynolds has accused the conglomerate of selling flavored vapes in areas where the products are banned, not being on any state directory, and evading state and local excise taxes.

Not only do these illicit practices undermine domestic competition, but they also put them at risk of having products seized and stores shut down, tainting the image of the vape industry.

After all, U.S.-based manufacturers operating in FDA-approved facilities should not be conflated with these illegal foreign actors, as American companies ensure compliance with all FDA regulations.

Moreover, vape users are at risk when using these illegal Chinese vapes, as they lack proper inspection and labeling and are frequently laundered through other countries.

Cactus Politics previously covered  China's black market vapes, with affiliated lobbyists able to kill Arizona Senate Bill 1272,  which would have created a directory of nicotine vapor products to counter their efforts the previous April.

Nevertheless, the United States under President Donald Trump has sought to counter the prevalence of these gray market products, seizing 4.7 million units of unauthorized e-cigarette products valued at more than $86 million in Chicago this past September.

Florida Governor Ron DeSantis expounded on the challenge of illicit Chinese vapes in a December interview, saying he supported "100% efforts to shut down the Chinese vaping black market because "Some of this stuff is dangerous."

With expanded and national attention focused on cracking down on these illegal vapes, any distributors or retailers who continue distributing or selling these products can face severe fines, unannounced and recurring inspections, immediate seizure and destruction, license suspension or revocation, and possible criminal charges.

"The Chinese criminal market hurts the American marketplace because it produces and sells a product that is 100% illegal and is contraband," said Rich Marianos, former U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Director and co-founder of the Tobacco Law Enforcement Network (TLEN). "The Trump administration continues to do a solid job by regulating legal products in the marketplace that are manufactured for tobacco harm reduction, and by providing law enforcement with funds to deter these high-value targets.

Enforcement Isn’t Coming, It’s Here

On September 10th of this year, the U.S. Department of Health and Human Services, the FDA, and U.S. Customs and Border Protection announced the seizure of 4.7 million units of unauthorized e-cigarette products valued at more than $86 million, marking the largest operation of its kind. The joint action in Chicago targeted incoming shipments and halted illegal products before they could enter U.S. commerce.

Federal officials say the scale of the seizure reflects a broader crackdown on noncompliant imports, particularly e-cigarettes manufactured in China that routinely evade U.S. safety and labeling rules. Regulators expect enforcement actions to intensify as agencies move to intercept illegal shipments at ports of entry and prevent unregulated products from reaching American consumers.