WHILE THE ENTIRE nation is busy with fast and furious developments in the political front, a controversy is also brewing between government regulators, and the many players and stakeholders of the burgeoning vape industry.
According to a study conducted by U.S. and India-based think tank Grand View Research, the Philippines e-cigarette and vape market size was valued at US $113.6 million in 2023.
The same study said that the local vape industry is estimated to grow at a compound annual growth rate (CAGR) of 18.7 percent from 2024 to 2030.
This growth trajectory reflects the increasing popularity of vaping especially among young Filipinos, which could hasten the demise of the local tobacco industry that is already on death throes.
Among the factors that contribute to the rapid growth of the vape industry in the Philippines is the huge investment in marketing by big manufacturers, primarily focusing on presenting vaping as a lesser harmful option than traditional tobacco products.
Moreover, the availability of diverse flavors and product types, from e-liquids to vape pens, that caters to a wide range of preferences, also contribute to enhancing their consumer appeal.
THE HARD TRUTH
For its part, the Philippine government has apparently already accepted the hard truth that vape products are here stay.
So, it has crafted laws and regulations aimed at controlling the sale and distribution of vape products to protect public health, and also collect proper taxes from their manufacturers and suppliers.
Under Republic Act 11900 or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, manufacturers or importers must register their products and secure licenses to operate.
They are also required to adhere to packaging standards and pay duties and taxes, and were earlier given an 18-month transition period to comply with the regulations laid down in the Vape Law.
But vape industry insiders say that majority of manufacturers and suppliers have yet to secure their Philippine Standard (PS) Quality and/or Safety Mark and Import Commodity Clearance Sticker from the DTI, because of what they described as cumbersome process.
As a result, many of them have resorted to operating illegally which they eventually learned to embrace, especially since the scheme effectively frees them from paying required duties and taxes to the government.
ILLICIT PRODUCTS
According to Customs Intelligence Division Chief Leon P. Mogao, they have already seized P6.5 billion worth of illegal vape products, mostly from China, as of the end of August 2024.
For his part, Minimal Government Thinkers president Bienvenido S. Oplas, Jr. said the government is losing around P5 billion yearly from the sale of illicit vape products.
Authorities expect the situation to worsen in the coming months amid the emergence of various forms of smuggling which illegal traders employ to avoid paying required taxes.
This alarming situation prompted various organizations among them the health advocacy group SafeVape PH to step forward and call on vape industry players and stakeholders to be more responsible.
The group made the call as the Department of Trade and Industry’s (DTI) Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products’ (OSMV), recently approved the application for accreditation of Guandong Boopower Industry Co. Ltd. (GBPI), and its local agent One Tech Ventures OPC.
SafeVape PH pointed out the fact that GBPI managed to obtain its license would belie claims by some suppliers and manufacturers that the process of accreditation was almost impossible to comply.
“GBPI’s case was clear example that securing licensed certificate from OSMV is not impossible as some industry players want the public to believe,” SafeVape PH said in a statement.
It added that just like any other regulatory agency, OSMV requires applicants to submit all necessary documentary requirements before they are granted certifications and licenses.
TRANSPARENCY AND ACCOUNTABILITY
SafeVape PH pointed out that it is imperative that everyone in the vape industry must comply with the requirements of the law to ensure the health and safety of the general public, especially young adults who comprise the majority of vape users.
It also advocates for transparency and accountability while also supporting educational campaigns to inform the public about the risks and benefits of vaping, product safety, and responsible usage.
The Bureau of Internal Revenue (BIR) meanwhile, has been running after illegal retailers and resellers to discourage vape smugglers from bringing in their products into the country.
BIR Commissioner Romeo D. Lumagui Jr. said illegal vape dealers continue to ply their illicit trade despite multiple warnings, prompting them to conduct regular raids and product seizures.
However, because of potential huge money that could be made, many suppliers still dare to operate without the necessary licenses, undermining government regulations and posing risks to consumers.
Indeed, the vape industry represents a significant economic opportunity, with a rapidly expanding market and a growing consumer base.
REGULATED ENVIRONMENTBut the challenges posed by illegal suppliers and the need for stringent regulations cannot be overlooked.
As the government continues to enforce laws and crack down on unlicensed sales, the future of the vape industry will likely depend on balancing growth with public health considerations.
By fostering a regulated environment, the Philippines can support a sustainable vape market that prioritizes consumer safety while allowing businesses to thrive.
