Babylon Vardex Group sues over illegal tax on ENDS.

Sep.22.2022
Babylon Vardex Group sues over illegal tax on ENDS.
Babylon Vardex Group sues Moscow court over central excise tax on liquid in electronic nicotine delivery systems.

The main distributor of Electronic Nicotine Delivery Systems (ENDS), Babylon Vardex Group, has filed a lawsuit with the Moscow Arbitration Court, declaring the behavior of the Central Excise Tax (CAT) as illegal. The latter demands payment of consumption tax for the liquid contained in the ENDS.


Artem Shevelin, the chief lawyer of Babilon LLC, has explained that in addition to paying consumption taxes on equipment, customs authorities are also requiring liquid consumption taxes to be paid on immersed evaporators. The size of these requirements, which relate to goods imported between 2020 and 2022, has not been disclosed. A preliminary hearing for the claim will take place between September and October.


CAT stated that all activities involving ENDS are legal. The Ministry of Finance also pointed out that a consumption tax must be paid on the liquid used for ENDS. It does not matter whether it is sold separately or as part of a package.


Market experts add that pressure on market participants will only push them into a gray area, rendering legal businesses unprofitable for suppliers and sellers alike. However, the current situation calls for a cross-departmental meeting to discuss ways to avoid potential double taxation issues.


On August 9th, the Russian Ministry of Industry and Trade proposed to advance the label test on nicotine liquids and electronic nicotine delivery systems, and to enforce mandatory labels for these products starting from November 1st, 2022.


Statement:


This article is compiled based on third-party information and is intended solely for industry communication and learning.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity or accuracy of the article's content. The article's translation is solely intended for industry-specific communication and research.


Due to the limitations of our translation abilities, the translated article may not accurately reflect the original text. Therefore, readers are advised to rely on the original text for accuracy.


2FIRSTS is in full alignment with the Chinese government's positions and statements on any domestic, Hong Kong and Taiwan-related, and foreign issues.


5. The copyright of the compiled information belongs to the original media and authors. If there is infringement, please contact us for removal.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Product | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
Product | APUS Launches Chloe 50K, Bringing Purse-Inspired Design to the U.S. High-Puff Disposable Market
APUS has introduced the Chloe 50K disposable vape, which has appeared across U.S.-facing online retail channels including Element Vape and Vapesourcing. The device combines a purse-inspired body and chain attachment with a 20ml e-liquid capacity, 1,250mAh rechargeable battery, dual mesh coil, and battery and e-liquid indicators. It is rated for up to 50,000 puffs. The product does not appear on the FDA’s current list of authorized e-cigarettes, and U.S. retail availability does not indicate FDA marketing authorization.
Jul.15
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
Australia-China Operation Dismantles Tobacco Smuggling Network: 112 Containers, 60 Arrests and A$92 Million in Illicit Tobacco
According to The Maritime Executive on August 19, 2026, the Australian Border Force (ABF) and China’s Anti-Smuggling Bureau of General Administration of China Customs worked together to dismantle an international illicit tobacco smuggling network targeting Australia. According to information released by ABF on August 20, sustained information sharing and cooperation led to investigations into 112 shipping containers, with 91 found to contain illicit tobacco. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, representing more than A$92 million in unpaid duties. More than 60 people suspected of involvement in the network were arrested in China.
Aug.20
 PMI Opens Generative AI Center in Portugal to Support Global Operations
PMI Opens Generative AI Center in Portugal to Support Global Operations
According to information released by Portugal’s Trade & Investment Agency (AICEP) in July 2026, Philip Morris International (PMI) has established a global Generative Artificial Intelligence Factory (GenAI Factory) at its Portuguese subsidiary Tabaqueira. The center will support PMI’s global operations by developing and deploying AI solutions focused on industrial process optimization, data analytics, operational automation and AI application development. The initiative strengthens Portugal’s role in PMI’s global technology and innovation network.
Aug.27
F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
Ahead of the Formula 1 race in Madrid, 67 Spanish and international public-health, medical and consumer organizations have sent an open letter to F1 President and CEO Stefano Domenicali calling for an end to sponsorships linked to the tobacco and nicotine industry, including nicotine pouches, vaping products and heated tobacco. The letter focuses on Philip Morris International’s ZYN partnership with Ferrari and British American Tobacco’s long-running partnership with McLaren and exposure for VELO. The campaign follows a March letter in which more than 160 organizations worldwide made a similar request to Formula 1.
Sep.10
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
China’s vape exports showed resilience in the first half of 2026 after a short-term shock from China’s export rebate adjustment. But customs data points to more than a simple recovery: the structure of growth is changing. Vaping devices and atomization hardware emerged as the strongest growth driver, while nicotine-containing vaping products remained broadly stable. Meanwhile, nicotine substitute-related products represented by 6-methyl nicotine expanded rapidly, becoming a new category to watch for both industry and regulators. After the U.S. market went through a cycle of shortages, replenishment and inventory rebuilding in 2025, China’s vape supply chain is entering a new phase of reallocation.
Special Report
Jul.20
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania reported its 2025/26 illicit tobacco enforcement results on July 14, with authorities seizing about 5.5 million illegal cigarettes, more than 2,500 kilograms of loose tobacco and nearly 30,000 vapes.
Jul.15