MANILA — Starting June 2024, the Department of Trade and Industry (DTI) will require all vape products to be registered with the agency, as per the new Vape Law. This was announced by DTI Undersecretary Amanda Nograles at a forum organized by Bantay Konsumer, Kalsada, Kuryente (BK3) in Makati.
Nograles highlighted that the importation and manufacturing of vaporized nicotine, non-nicotine products, and novel tobacco products must now undergo the DTI certification process. This means these products need to have the Philippine Standard (PS) mark and Import Commodity Clearance (ICC) sticker before they can be sold.
She mentioned that at least three companies have already applied for registration. She urged others to start the process soon as registration might take some time. To aid this transition, there will be a six-month period for firms to comply.
“We will allow them to sell all the existing inventory. On January 5, 2025, we will do market clearing. There should be no vape products without a PS license and ICC sticker,” Nograles stated.
Additionally, the DTI will continue monitoring shops to ensure that no minors purchase vape products. They will also check for the presence of marijuana oil in vapes.
Starting next week, the Bureau of Internal Revenue (BIR) will begin affixing tax stamps on vape products, similar to those on imported cigarettes and alcohol. This measure aims to curb the spread of unregulated products.
“Enforcing the excise stamp tax from June 1 on vape products could significantly help both the BIR and the vape industry,” said Atty. Venus Gaticales, Chief of the BIR Excise Large Taxpayers Field Operations Division.
This new law is part of the government’s efforts to protect children and increase tax collection. The BIR noted rising revenue losses due to smuggled cigarettes, which amounted to over PHP 25 billion in 2023. This figure is expected to increase in the coming years.
“We are still exerting our best efforts to collect or increase the collection of excise tax on tobacco products,” added Gaticales.
BIR Commissioner Romeo Lumagui Jr. urged the public to report any smuggling incidents. This comes after recent discoveries of homes converted into warehouses in Agusan del Sur and Surigao del Sur, filled with smuggled cigarettes, resulting in a tax liability of PHP 219 million.
As the new Vape Law takes effect, the DTI, BIR, and other agencies are gearing up to ensure compliance and safeguard public health while bolstering the country’s revenue.
