Middlemen Enable $3.3B Unauthorized Vape Imports From China to U.S.

Multiple investigations reveal a significant illicit trade of unauthorized Chinese-made vapes entering the U.S., with a small customs brokerage near Chicago, led by Jay Kim, processing 60% of these shipments. These shipments often include illegal brands like Lost Mary and Geek Bar, banned by the FDA due to their appeal to minors, and are frequently disguised as other products to evade detection. The FDA, criticized for slow enforcement, is now leveraging artificial intelligence and enhanced inter-agency collaboration to combat this illicit flow, having seized millions of e-cigarettes valued at over $136 million in recent years. Despite these efforts, the illegal vape market remains substantial, with estimates suggesting illicit products accounted for 70% of U.S. sales last year, worth over $8 billion. In related enforcement actions, individuals in the UK have been fined for supplying e-cigarettes exceeding legal limits, highlighting the global nature of regulatory challenges around vaping products. Experts argue that comprehensive federal intervention is essential to effectively dismantle the entrenched supply chains fueling the unauthorized vape market.