Pact Act Overview
Recent changes to the PACT Act will restrict how to vape product shipping is managed nationwide. These changes have the potential to negatively affect your business, but we’re doing everything we can to alleviate any impacts on your overall business.
Our staff has been working diligently to establish a process that allows us to continue offering vape products at competitive price points. Essentially, we will bring vape products into Alaska and make them available at our Anchorage facility for convenient pick-up. See our “Vape Product Order Process” for further details.
Here is What You Need to Know about PACT
- The Prevent All Cigarette Trafficking Act (PACT) was originally passed in 2009 and amended on December 27, 2020. The Act was created to regulate the shipment of cigarettes and smokeless tobacco.
- The 2020 amendment was updated to include “Electronic Nicotine Delivery Systems” or ENDS. This includes both empty and filled products.
- ENDS are defined as “Any electronic device that through an aerosolized solution delivers nicotine, flavor, or any other substance to the user inhaling from the device.”
- Vape Batteries
- Vape Cartridges and Mouthpieces
- Flavorings and Terpenes which can be used in vape liquids
- Any other Products which can be used to vape
- Devices that require vapor in order to function
- ENDS will now be treated like tobacco when it comes to shipping. That means strict bans from most parcel shipping services.
- ENDS distributors and retailers must be PACT compliant.
When Does This Take Effect?
Distributors must be PACT compliant 90 days after the law was signed, or by March 26, 2021. However, shipping services have 120 days to enact their bans. For distributors and retailers to be PACT compliant, they must:
- Register with the US Attorney General and the tax administrators in any state where the product is to be sold.
- Implement a third-party identity and age verification system for sales.
- Verify the customer’s age at the point of delivery.
- Adhere to local tax laws where the product is sold.
- Create a log of all transactions based on the name, age, and address of the customer and the person who delivers the ENDS.
- This log must also record the quantity and brand of the product purchased.
- Keep a log of failed delivery attempts due to a lack of age identification for five years.
- The ATF can audit these logs at any time.
PACT regulations are forcing all vape distributors and retailers to use private freight shipping services that will support the age verification service. Please understand that these new shipping methods will cause the cost of shipping to rise significantly. Unfortunately, this is entirely out of our control, and we are working with carriers to mitigate the additional expenses.
What To Do Now
USPS has stated that they may continue to ship ENDS until April 26, 2021. After this date, we believe that the only shipping methods that will be available for ENDS products will exclusively be through private LTL freight companies. Therefore, we have modified our process to eliminate the last mile shipment by placing vape product order contents directly into our customers’ possession at our Anchorage point of sale, and gathering & recording all regulatory-compliant information at that time.