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Author Hannah Rubery Categories E-Liquid, Manufacturing, Other, Regulations Posted on

Australia Considers Toughening Restrictions on Vaping

Despite being the home of one of the world’s toughest restrictions on vaping, the Australian government are considering further tightening. The aim is to crackdown on children accessing E-Cigarettes. But is it creating more harm than good?

The current vaping regulations in Australia

Currently, it is illegal to purchase nicotine-containing E-Liquid, and devices in Australia without a prescription. Each state however regulates issues such as sales, public use, age limits etc.

All states require retailers to be given approval for selling E-Liquid but at this time, none have been granted approval. Similarly, many states allow the sale of nicotine-free E-Cigarettes, but the products cannot claim to help quit or reduce smoking. These include Australian Capital Territory (retailers must have a tobacco license) and Tasmania, Queensland, Victoria and New South Wales have the same rule but sellers don’t require a license.

The proposed changes

The Australian federal government are considering key changes targeting specific areas such as importation rules and tougher labelling laws. A public consultation will be held to cover the four areas:

  • Changes to importation and border control laws required to stop illegal products entering Australia
  • Pre-market assessments of vapes to create a regulated source of products for pharmacists and doctors to prescribe
  • Labelling, advertising and flavouring of vapes that make them attractive to children
  • Stronger identification and regulation of nicotine-containing products

While these are being debated, the health Minister Mark Butler, has announced a ban on menthol cigarettes and other cigarette flavours plus additives.

The public consultation on vaping reforms will be open until the 16th of January.

The AMA (Australian Medical Association) has welcomed the federal government’s plans to tighten tobacco control and calls for the below changes to be made:

  • reducing the concentration limit from 100mg/ml to 20mg/ml, and introducing limits on the flavours and volume of nicotine that can be prescribed or ordered,
  • banning the importation of nicotine vaping products through the Personal Importation Scheme,
  • adding Nicotine Vaping Products to Real Time Prescription Monitoring programs,
  • restricting the use of Medicare smoking cessation items to a patient’s usual doctor, consistent with previous advice provided by the AMA.

Have these regulations really helped?

There’s much to debate with Australia’s already tight regulations on vaping. They clearly haven’t had the impact the government wished as they feel the need to tighten them further. And research has suggested that these changes may have been more detrimental to the smoke-free objective.

A recent study published by the BMJ (British Medical Association) analysed the smoking rates and cigarette consumption in 6 jurisdictions, across different regulatory environments for vaping. These included Alberta, Ontario, Quebec and British Colombia, UK and Australia. It was noted that, unsurprisingly, Australia had lower rates of vaping and a much lower rate of declining smoking rates, in comparison to the other countries.

And other countries are taking note of the failings. CAPHRA (Coalition of Asia Pacific Tobacco Harm Reduction Advocate) have submitted a consultation document to Australia’s Therapeutic Goods Administration (TGA). They believe that Australia’s method of medicalising vaping is failing and that there needs to be open access for smokers looking to quit smoking.

Keep posted on the latest news with Xyfil.

Author Hannah Rubery Categories E-Liquid, Regulations Posted on

China’s Latest Regulation Changes Include Vaping Tax

New legislation in China has taken effect as of the 1st of November, which continues to change the landscape of the Chinese vaping industry. Last year changes were made that established a need for Chinese E-Cigarette companies, to obtain a license to be able to continue selling to customers.

Along with this change, the requirements and regulations that were introduced triggered a wave of closures, especially in hardware manufacturing. And these new changes could bring even more issues for Chinese vapers and manufacturers.

The new vaping tax implemented in China

On the 1st of November, the Chinese government implemented a new tax on vaping products. This consumption tax includes a 36% tax on the production or import of E-Cigarettes and an 11% tax on wholesale distribution in China. China’s Ministry of Finance has announced that E-Cigarette products will now be a sub-item under the tobacco tax item list.

Companies that have a license from the tobacco monopoly authorities (STMA) to produce E-Liquids, or companies that have obtained/licensed the use of a registered trademark or another company’s E-Cigarette products, will have their consumption tax calculated differently depending on how the products are sold or produced. Similarly, for E-Cigarettes made through an OEM, it is down the company that owns the trademark is liable for the consumption tax.

  • Producers and wholesalers pay tax based on the sales of the production and wholesale of E-Cigarettes. 
  • Companies that sell E-Cigarettes through an agency in the production process must pay tax based on the sales of the distributors or agents to the e-cigarette wholesaler.
  • Importers of E-Cigarettes must pay tax based on the component taxable price.
  • Companies engaged in processing E-Cigarettes in the production cycle must calculate the sales of trademarked e-cigarettes and the sales of OEM e-cigarettes separately; if they are not accounted for separately, they must pay consumption tax together.

Is there a concern about exports? A later announcement clarified that exports of E-Cigarettes are eligible for the tax refund and exemption policy. This means that although the internal Chinese vaping industry is expected to feel the pinch, exports will not see the same treatment.

What is concerning though is the potential for more Chinese E-Cigarette companies to begin struggling to keep up with the added tax. Not to mention the added cost that very likely could be transferred to consumers in China.

These changes come from China’s further clampdowns on vaping products that saw flavoured vapes banned. Having started in October, only tobacco-flavoured vapes are to be sold in China.

Are there any positives from these changes?

One thing is for sure, with the increasing legislation in China, it has begun a crackdown on requirements for E-Cigarettes and vape products in an effort to improve quality. These include regulations on the battery, ceramic coil, nicotine content, and flavours.

What these changes do help is establish a greater baseline for good quality products. Ensuring that vape products meet these criteria could help in reducing the presence of fake disposables and lower-quality E-Liquids that have begun to flood the market.

The largely untapped market of potential vapers

The Chinese vape industry has seen a similar explosion in growth as most of the world these past few years. With a smoking population of around 300 million, China is a prime spot for pushing the quit-smoking journey with the aid of vaping.

And yet the rate of E-Cigarettes usage in China is far behind other countries such as the UK and US; a mere 1.5% compared to 30%. Therefore, there is significant room for expansion but with these latest regulation changes, it may become harder to do so. Only time will tell if more high-quality vaping products will make their way into the Chinese market.

Author Hannah Rubery Categories E-Liquid, Regulations Posted on

New Progressive Vaping Laws in the Philippines Welcomed

Vaping regulations change each year and differ around the globe. Some countries offer much tighter restrictions than others, and some regulations change to the detriment of vapers. However, the recent moves from the Philippines government have been welcomed by vaping activists.

Earlier in the year, legislation was proposed to make changes to the vaping laws in the country, and as of July 25, the bill became law.

What is the updated law for vaping now?

The most important takeaway from the updated law is that it legitimizes the use of vapes as a means for quitting smoking. This helps put the Philippines in line with most of Europe, setting them apart as one of the very few Asian countries to have reasonable vaping regulations.

The new laws allow for nicotine strengths of up to 65mg/ml (6.5%) and lowers the legal age of purchase from 21 to 18. These of course offer great benefits for customers who feel the need for higher strengths and help introduce aid for smokers aged 18-21.

In the Philippines, the legal age for buying cigarettes had always been 18 meaning that until this legislation changed, young smokers had at least 3 years of smoking before being able to legally purchase vapes. The hope is therefore that these changes will help 16 million smokers in the country, including the youngest adult smokers.

These changes also include restrictions on where vaping products can be sold and penalties for stores and online retailers for selling to minors. In a move similar to the UK and Europe, they have also restricted advertising with social media influencers and celebrities.

Another slight change to the laws revolves around flavours. Although the law does not ban flavours outright (a ban on flavours other than menthol and tobacco already exists), it prohibits labels and advertising that use flavour descriptors that may appeal to minors. This includes wording such as those relating to fruit, candy, desserts or cartoon characters.

One of the biggest changes is the change in the authority of who manages vaping. Rather than the FDA, the Department of Trade and Industry (DTI) will have control over the regulations on vaping and heated tobacco products.

The politics behind the changes

At the time of the bill first being introduced, there were some parties who disagreed with the proposed changes including the Philippines Department of Health. However, the FDA had previously angered many after it was revealed that American billionaire Michael Bloomberg attempted to influence Philippines policies with money sent to anti-vaping groups.

The bill was also under review at the same time as the presidency began to change hands, suggesting that possibly it flew under the radar.

Here's hoping that the Philippines continue to trial the new regulations and allow time for them to work, without bending under opposition that aims to oppress vaping as a quit-smoking tool.

The impact of the law changes on manufacturers and brands

As part of the improved regulations, the importation, manufacture, sale, packaging and distribution have also been overhauled. These have been brought in line with internationally accepted standards. But there are still some regulations that brands need to be aware of if they wish to take their products to the Philippines.

For one, the flavour ban restricts vape products to menthol and tobacco flavours only. These also cannot be labelled with fruity/candy/dessert names. Therefore, brands should be careful of product labels, flavour names and flavour descriptions.

Although some tobacco flavours may have naturally fruity tones, they should not be used as a descriptor. With the change of the legal vaping age from 21 to 18, age restriction labels on products will also require updating.

How Xyfil can help E-Liquid brands as a Toll Manufacturer

We pride ourselves in being able to help you through any and every step of the process, from concept to shelf. Whether you’re new to the business and want to take your first steps into creating an E-Liquid brand, looking for an E-Liquid manufacturer in the UK to develop your products, or have an existing product that needs some re-work. We’re here to help.

Our services cover all aspects of manufacturing, including white label and OEM, and compliance. We offer expert teams who can develop unique flavours, manufacture and produce your E-Liquids, bottle and label your products, and even offer a creative studio that can develop/update packaging, labels, logos and POS.

As a leading E-Liquid manufacturer in the UK, Xyfil has the trust of the many brands we have already helped take to market in the UK, EU and overseas. Get in contact with us today to see how we can help you.