Dear LuvBuds Community,
As you may have been hearing, there are some new legislative changes to the way we may have to do business with you in the future regarding Vape Pens, Batteries, and other devices. The PACT Act will restrict how vape shipping is managed across the United States. We know these changes may negatively affect your business, and we are doing everything in our power to alleviate any disruption to your shipments and overall business.
We have been in contact with multiple PACT ACT legal firms hoping to come to a company policy in regard to this very ill created and vague new regulation which penalizes law abiding cannabis patients due to the thoughtless integration with ECIGS and Child tobacco use. We have retained counsel and have been identifying methods in which we can leave our business uninterrupted. This however seems less likely, however.
What will we need from you?
Much of the regulation requires us to accumulate information about our customers and report it monthly to various agencies. Therefore, we will be requiring documentation from each customer placing orders for any devices which may be covered by the act.
- We will require the following information if we have not already gathered it.
o Proof of your TAX ID or EIN Letter
o Business/State Tobacco License if applicable
o Sales Tax License
o Vapor License if applicable
o A copy of your driver’s licenses or ID if required by your State
Here is what you need to know:
What is PACT?
- The Prevent All Cigarette Trafficking Act (PACT) was originally pass 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 empty or 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."
o Vape pens
o Advanced refillable personal vaporizers
o Electronic pipes
o Vape batteries
- ENDS will now be treated like tobacco when it comes to shipping. Potentially meaning we may have to find alternative methods of shipping which may raise costs significantly.
- We must have a signature of a person over the age of 21 for each shipment.
- 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 the product is 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 carriers unless we are able to get an exception.
Due to all of this nonsense, we think it is best for you to think of your needs not only for 420, but for the next 2 to 3 months when it comes to these products.
We do have hope that the USPS comes out with directions which alleviate this nonsense and allows us to ship devices desperately needed for medical patients as before, but it is a government agency, and they are bound to disappoint. Well, we can hold up hope!!!