What are ENDS products?
On December 2021, Congress amended the Definition of “cigarettes” in the PACT Act to include “Electronic Nicotine Delivery Systems” or “ENDS.”
Per the Amendment, ENDS is defined to include “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device,” including “an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described [above], without regard to whether the component, liquid, part, or accessory is sold separately from the device.”
How often does my company need to report sales?
No later than the 10th day of each calendar month. It is important to note that you will not file monthly reports with the ATF.
How long do I need to keep records?
You must maintain records for 5 years and provide that information, upon request, to the ATF or to the attorney general or chief law enforcement official or tax administrator of any State, local, or tribal government.
What are the registration requirements?
The PACT Act requires any person who sells, transfers, or ships for profit cigarettes or smokeless tobacco or advertises such in interstate commerce whereby such cigarettes or smokeless tobacco are shipped into a State, locality, or Indian country of an Indian tribe taxing the sale or use of cigarettes or smokeless tobacco—or who advertises or offers cigarettes or smokeless tobacco for such a sale, transfer, or shipment.
Can I use private shippers?
Yes! However, these private shippers MUST collect an adult signature at the point of delivery.
What are the penalties for noncompliance?
A knowing violation of the PACT Act can carry a three-year prison sentence and can result in a $5,000 fine for the first offense and a $10,000 fine for subsequent offenses. (15 USC 377.) Additionally, sellers can be fined in an amount equal to 2% of the gross sales of “cigarettes” (which, again, includes ENDS used with any substance) for a one-year period ending on the date of the violation.
Who enforces the PACT ACT?
The federal agency that enforces the PACT Act is the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
What are the labeling requirements for package shipping?
For any shipping package containing cigarettes or smokeless tobacco, the delivery seller shall include on the bill of lading—if any—and on the outside of the shipping package—on the same surface as the delivery address—the following clear and conspicuous statement:
“CIGARETTES/SMOKELESS TOBACCO: FEDERAL LAW REQUIRES THE PAYMENT OF ALL APPLICABLE EXCISE TAXES, AND COMPLIANCE WITH APPLICABLE LICENSING AND TAX-STAMPING OBLIGATIONS.”
What is Interstate Commerce?
Interstate Commerce is between a State and any place outside the state, and commerce between a state and any Indian country in the state, or commerce between points in the same state but through any place outside the state or through any Indian country.
What are the delivery requirements?
Delivery sellers shall not accept a delivery sale order from a person without:
1. Obtaining the full name, birth date, and residential address of that person; and
2. Verifying that information using a commercially available database or aggregate of databases regularly used by government and businesses for age and identity verification and authentication.