DTI Initiates Legal Action Against Four E-Cigarette Brands Including RELX, Flare

Editor's note: Following the suspension of the sale of five brands including LOST MARY by the Department of Trade and Industry (DTI) in the Philippines (related reading: Flash: Philippines suspends sale of five e-cigarette brands including LOST MARY, Chillax), the DTI has taken further action, filing lawsuits against four e-cigarette brands including Relx and suspending their transactions, in order to continue strengthening regulation of illegal e-cigarette products.

On September 11, the Department of Trade and Industry (DTI) of the Philippines issued a statement announcing that in response to the directive of Philippine President Ferdinand Marcos Jr. to expand and strengthen efforts to combat the smuggling and illegal trade of tobacco and e-cigarette products, the DTI is working in collaboration with the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and the Philippine National Police (PNP) to conduct continuous operations. The focus is on cracking down on untaxed e-cigarette products and strictly enforcing Republic Act No. 11900 (Vaporized Nicotine and Non-Nicotine Product Regulation Act) to protect minors from the harms of e-cigarette products.

The agency stated that in recent operations in Pasay City and Manila City, law enforcement authorities confiscated a batch of illegal e-cigarette products that violated DTI Administrative Order No. 22-16. This law prohibits the packaging, labeling, display, or marketing of e-cigarette products that appeal to minors, as well as violations of internal tax stamp requirements.

According to the BIR Memorandum Circular 105-2023, all e-cigarette importers and manufacturers are required to affix internal tax stamps on their products by June 1, 2024.

In addition, the Department of Trade and Industry (DTI) has filed formal charges against four e-cigarette manufacturers: Relx, Flare, Team X, and Funky Monkey, alleging that they have violated the internal tax stamp requirements of RA11900. The trade and PS licenses of these brands will be suspended until the formal charges are resolved. The penalties for selling or trading these products are a first-time fine of 2 million pesos (approximately $35,000), a second-time fine of 4 million pesos (approximately $70,000), a third-time fine of 5 million pesos (approximately $90,000), and revocation of their licenses.