The National Association of Convenience Stores (NACS) said illicit e-cigarettes imported from China are harming U.S. retailers. Some estimates suggest the products make up more than 80% of the market, NACS said in a letter sent Tuesday to the Office of the U.S. Trade Representative (USTR).
“This illicit supply imposes direct and ongoing harm [to] every business in the supply chain—including law-abiding retailers,” NACS said. “Stores that attempt to comply with the law lose sales to competitors, such as vape shops, willing to sell unauthorized products.”
The filing is part of a Section 301 probe examining whether foreign trade practices are contributing to excess production and unfair competition in manufacturing sectors.
“The export of these products into the United States creates health threats for Americans, including children, and hurts the financial viability of legitimate U.S. businesses including retailers, suppliers and manufacturers,” NACS said.
NACS urged the USTR to help lead a coordinated government approach to “eradicating this dangerous, illicit market.”
The letter called on USTR to seek a binding and enforceable commitment from China.
This list includes:
- Requiring Chinese authorities, including the State Tobacco Monopoly Administration and others, to implement and maintain effective controls that prevent the export to the United States of e‑cigarette products lacking FDA marketing authorization.
- Ensuring meaningful enforcement of China’s existing export rules requiring e‑cigarette products to comply with the legal and regulatory requirements of destination markets, including the United States.
- Ensuring China’s e-cigarette exports are correctly classified with the correct Harmonized Tariff Schedule code (HTS), declared value and country of origin.
- Establishing transparent, verifiable obligations with objective benchmarks and ongoing oversight mechanisms to confirm compliance.
In March, a group of 71 House lawmakers led by Rep. Mike Carey (R-Ohio) urged the Trump administration to crack down on illicit Chinese e-cigarettes entering the United States without authorization from the FDA.
Lawmakers said that the need for action is urgent.
“Illicit Chinese e-cigarette makers and their U.S. distributors intentionally design and market products to appeal to young people—using candy flavored cartridges, toy-like designs and packaging styled after fashion accessories,” the letter said.
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