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Don’t Get Penalized!
Violators of the PACT Act, as amended, are subject to criminal and civil penalties. Violations include, but are not limited to, failure to properly register and file monthly reports as required under the amended PACT Act, as well as failing to register for, file and pay state & local sales and use and electronic cigarette products taxes.
The PACT Act was amended on December 27, 2020, by the “Preventing Online Sales of E-Cigarettes to Children Act”. The purpose of the amendment was to address changes in the tobacco product market and the growing use of e-cigarettes by young people. The definition of “cigarette” was amended to include electronic nicotine delivery systems (ENDS). ENDS include any component, liquid, part, or accessory for the device, even if sold separately. The amended PACT Act becomes effective March 27, 2021.
Yes! And, no later than the 10th day of each calendar month file with the tobacco tax administrators of the State. You must also include a memorandum or a copy of the invoice covering every shipment made during the previous calendar month into each state you ship to and/or deliver product.
The following products must be reported:
- Cigarettes
- Electronic nicotine delivery systems (ENDS):
- As of March 28, 2021, the Preventing Online Sales of E-Cigarettes to Children Act Act amends the PACT Act and Jenkins Act, 15 U.S.C. chapter 10A, to include ENDS. The definition of an ENDS is broad and covers “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device,” and includes:
- e-cigarettes
- e-hookahs
- e-cigars
- vape pens
- advanced refillable personal vaporizers
- electronic pipes
- any component, liquid, part, or accessory of a device without regard to whether the component, liquid, part, or accessory is sold separately from the device
- As of March 28, 2021, the Preventing Online Sales of E-Cigarettes to Children Act Act amends the PACT Act and Jenkins Act, 15 U.S.C. chapter 10A, to include ENDS. The definition of an ENDS is broad and covers “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device,” and includes:
- Roll your own (RYO) tobacco
- Smokeless tobacco
No. Monthly reports for electronic nicotine delivery systems (ENDS) only need to be filed in states, localities and Indian territories that tax the sale or use of ENDS.
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.”