Originally passed in 2009 as an amendment, the PACT act has seen some modifications due to the coronavirus pandemic. On December 27, 2020, the new PACT act was signed into law alongside the new COVID-19 relief bill. The PACT act has been modified to prevent all cigarette trafficking as well as e-cigarettes and smokeless products.
What is the PACT Act?
The Prevent All Cigarette Trafficking (PACT) law features several major components that regulate the use and distribution of cigarettes and other smokeless tobacco products to consumers in the United States. The PACT Act regulates the mailing of these products and adds new requirements for registration as a distributor, delivery, reporting, and recordkeeping.
Why Is it So Serious?
The PACT act prevents the sales of E-cigarettes as well as a wide range of products like Delta 8 CBD to children. By products, we mean anything that can be used to vape, which is any liquid, oil-based substance, or cannabis flower.
Failure to comply with these rules may result in a three-year sentence. Following the passage of this new law, major delivery companies in the United States announced that they would stop delivering vaping products to homes and businesses. Companies like FedEx, UPS, and DHL have either stopped the shipment of these products or have set a date on which the shipment of these products will stop.
Why was it Enacted?
The PACT act was initiated to combat the sale of untaxed online cigarettes. The 2009 law required online sellers to register with the ATF bureau and the tax administrators of their state of operation.
This law mandates the collection of local and state taxes by cannabis accessory online sellers, and it was a way to set the standards for private carriers who deliver cigarettes and smokeless products to business and residential consumers. It also imposed strict rules regarding reporting to the state and federal governments and paying taxes.
The modifications made last December required online distributors to:
- Verify the age of buyers using any commercially available database
- Register with the U.S. district attorney and the ATF
- Collect and pay both local and state taxes, including any affix that requires a tax stamp on the product sold
- Register with the local and state tax administration
- Send a list of all transactions after the end of every month to the state’s tax administrator. The list must carry the address, quantity, and type of products sold.
Who Will be Affected?
Both consumers and distributors will be affected. The PACT Act places strict rules on how tobacco or smokeless products move from the manufacturer to the consumer. With the tightened laws and the limitation on the distribution channel, both parties will feel some discomfort.
How Will Shipping be Handled?
Due to new shipping restrictions, the vaping community is worried about how the shipping of products will be handled. While we will be discussing the basics here, if you own a vaping business, it would be best to discuss your options with a knowledgeable lawyer.
While the postal agency intends to add vaping products to its list of existing prohibited packages, it has also made minor changes that shouldn’t significantly affect online vape purchasers.
The PACT act prohibits U.S. mail shipments from businesses to retail consumers (except in Alaska and Hawaii), and it makes shipping these products from one business to another quite difficult. However, there is an exception in the USPS rule that allows private individuals to ship up to 10 small packages monthly to other businesses or private individuals. Hopefully, these exceptions will be extended to vaping products.
Will it Change?
We hope it will. But no one can be certain of what will happen.