USITC Launches Section 337 Probe Into Disposable and Closed-System ENDS, Involving 16 Companies

Key Takeaways

• USITC instituted a Section 337 investigation: 337-TA-1486
• Complaint filed by R.J. Reynolds entities in Winston-Salem, North Carolina; supplemented Feb. 3, 2026
• Allegations cite the PACT Act, flavor bans, state directory requirements, and excise-tax compliance issues
• Requested remedies include exclusion orders and cease-and-desist orders
• Respondents include companies across multiple U.S. states and entities in Hong Kong, Shenzhen and Guangdong, China

2Firsts, March 5, 2026

According to the U.S. International Trade Commission (USITC), the Commission voted to institute a Section 337 investigation into certain disposable and other closed-system electronic nicotine delivery systems (ENDS) devices and components thereof (Inv. No. 337-TA-1486).

USITC said the investigation is based on a complaint filed on January 13, 2026 by R.J. Reynolds Tobacco Co.; R.J. Reynolds Vapor Company; RAI Services Company; and Reynolds Marketing Services, all based in Winston-Salem, North Carolina. A supplement was filed on February 3, 2026. 

The complaint, as supplemented, alleges violations of Section 337 based on importation and sale in the United States by reason of unfair methods of competition and unfair acts tied to alleged (1) PACT Act violations, (2) state and/or local flavor-ban violations, (3) state directory violations, and (4) non-compliance with state and/or local excise taxes, with alleged injury or threat of injury to a U.S. industry.

The complainants request a general exclusion order or, alternatively, a limited exclusion order, and cease-and-desist orders.

USITC identified respondents in multiple U.S. states as well as Hong Kong and mainland China, including Shenzhen and Guangdong Province.

The USITC has identified the following respondents in this investigation:

• D&A Distribution, LLC d/b/a Strictly E-cig, Savannah, Georgia
• ECTO World LLC d/b/a Demand Vape, Buffalo, New York
• Geek Miracle (HK) Limited Unit, Hong Kong, China
• Guangdong Qisitech Co., Ltd., Guangdong, China
• Headway Funding Inc. d/b/a Jewel Distribution, Agoura Hills, California
• Heaven Gifts International Ltd, Shenzhen, China
• iMiracle HK Limited, Hong Kong, China
• iMiracle (Shenzhen) Technology Co. Ltd., Shenzhen, China
• Magellan Technology Inc., Buffalo, New York
• Midwest Goods Inc. d/b/a Midwest Distribution Illinois, Bensenville, Illinois
• RZ Smoke Inc., Suffield, Connecticut
• Safa Goods, LLC, Punta Gorda, Florida
• Shenzhen Geekvape Technology Co., Ltd, Shenzhen, China
• Texas Central Distribution LLC, Houston, Texas
• Unishow USA, Inc., Houston, Texas
• Zhuhai Qisitech Co., Ltd., Guangdong Province, China 

USITC said institution does not reflect any decision on the merits. The Chief Administrative Law Judge will assign the case to an administrative law judge, who will hold an evidentiary hearing and issue an initial determination subject to Commission review. USITC said it will set a target date for completing the investigation within 45 days of institution.

Image Source: USITC