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Vapor Industry Coalition Submits Comment to the U.S. Trade Representative Opposing Additional Tariffs on Chinese Vapor Products

On September 6, 2018, a coalition of vapor industry trade associations and businesses – specifically the Smoke-Free Alternatives Trade Association (SFATA), the American E-Liquid Manufacturing Standards Association (AEMSA), the American Vapor Association (AVA), and SV3, LLC (collectively, the “Vapor Coalition”) – submitted comments to the U.S. Trade Representative (USTR) arguing against the Trump Administration’s additional proposed tariffs that would apply to certain vapor products imported from China (see Docket No. USTR-2018-0026).

The Vapor Coalition’s comments strenuously oppose the tariffs, and describe in detail the potentially disastrous economic and public health consequences that would result if the tariffs are imposed.  The comment also describes how FDA’s current regulatory framework makes it effectively impossible for American companies to now start manufacturing vapor devices domestically – forcing U.S. businesses to rely on Chinese manufactured products.

At issue in this docket is the “Third Tranche” of tariffs proposed by the Trump Administration which apply to a number of Harmonized Tariff Schedule (HTS) codes used to import a variety of vapor products and components, parts and accessories from China:

HTS Code Product Description
8543.90.88.50 Personal electric or electronic vaporizing devices with substances containing nicotine.
8543.90.88.60 Other personal electric or electronic vaporizing devices.
2403.19.20.20 Mixture containing tobacco mixed with glycerol or other ingredients
2905.31.00.00 Ethylene Glycol (without nicotine or flavoring added)
2905.32.00.00 Propylene Glycol (without nicotine or flavoring added)
3824.99.92.80 Mixtures of a kind containing nicotine used in personal electric or electronic vaporizing devices
3923.30.00.00 Carboys, bottles, flasks and similar articles for the conveyance or packing of goods, of plastics.
8504.40.95.80 USB Charger
4202.92.00.00 Product with outer surface of sheeting of plastics or of textile materials
4819.20.00.00 Folding cartons, boxes and cases of non-corrugated paper or paperboard.
4821.10.00.00 Printed paper and paperboard labels of all kinds
8506.10.00 Manganese dioxide primary cells and primary batteries
8506.30.10 Mercuric oxide primary cells and primary batteries having an external volume not exceeding 300 cubic cm.
8506.80.00 Primary cells and primary batteries, nesoi.
8507.40.80 Nickel-iron storage batteries, other than of a kind used as the primary source of power for electric vehicles.
8507.50.00 Nickel-metal hydride batteries.

The USTR has already imposed tariffs on vapor products imported under HTS subheading 8543.70.99 including, in particular, 8543.70.99.30, 8543.70.99.40, and 8543.70.99.90 (Final Second Tranche, August 7, 2018).[1]  Although not the subject of this docket, the Vapor Coalition noted its opposition to such action and urged the USTR to reconsider and remove these subheadings from its Final Second Tranche.

You can download the Vapor Coalition’s comments to the USTR here.

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[1] See USTR Finalizes Second Tranche of Tariffs on Chinese Products in Response to China’s Unfair Trade Practices, available at: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/august/ustr-finalizes-second-tranche.

© 2018 Keller and Heckman LLP

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About this Author

Azim Chowdhury, Keller Heckman, ECigarette Research lawyer, FDA Regulatory Compliance Attorney
Partner

Azim Chowdhury joined Keller and Heckman in 2010 and practices in the area of food, drug, and tobacco law. 

Mr. Chowdhury advises domestic and foreign corporations in matters of FDA and international regulatory compliance. In particular, he assists corporations in establishing clearances for food and drug additives in the U.S., Canada, and the European Union, with an emphasis on indirect additives used in food-contact materials.  Mr. Chowdhury has also developed expertise in tobacco and e-vapor product regulation relating to the implementation...

202.434.4230
Associate

Adam Susser is an associate in the food and drug and tobacco and e-vapor practices at Keller and Heckman. He advises clients on regulatory and compliance matters in industries overseen by the U.S. Food and Drug Administration (FDA), including the pharmaceutical, medical device, food, dietary supplement, and tobacco industries.

Mr. Susser is frequently asked to present on FDA regulations at industry conferences hosted by the Food and Drug Law Institute (FDLI) and publishes FDA related articles in various forums including FDLI’s Update Magazine.

Mr. Susser graduated with honors from the University of Chicago Law School where he received the Burton and Adrienne Glazov Academic Merit Scholarship. In addition, he devotes his time to many pro bono and community service projects including the D.C. Bar’s Landlord-Tenant Resource Center. Mr. Susser has a background in political science and, while in law school, worked as a legal intern for the Transportation Security Administration (TSA) within the Department of Homeland Security.

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