To the CannaMAZE Family:

To Our Valued Customers,

As you may already know, changes to the PACT Act will restrict how vape shipping is managed across the United States. We know these changes may negatively affect your business, and we are doing everything in our power to alleviate any disruption to your shipments and overall business.

Our staff has been working night and day with all shipping carriers, trucking companies, and counterparties to find solutions to the shipping bans to ensure product continues to arrive at your place of business.

Here is what you need to know:

What is PACT?

  • The Prevent All Cigarette Trafficking Act (PACT) was originally pass in 2009 and amended on December 27, 2020. The Act was created to regulate the shipment of cigarettes and smokeless tobacco.

  • The 2020 amendment was updated to include "Electronic Nicotine Delivery Systems" or ENDS. This includes empty or filled products.

  • ENDS are defined as "Any electronic device that through an aerosolized solution delivers nicotine, flavor, or any other substance to the user inhaling from the device."

 

That includes:

    • E-cigarettes

    • E-hookah

    • E-cigars

    • Vape pens

    • Advanced refillable personal vaporizers

    • Electronic pipes

    • Vape batteries

    • Mouthpieces

    • Atomizers

  • ENDS will now be treated like tobacco when it comes to shipping. That means strict bans from most shipping services.

  • ENDS distributors and retailers must be PACT compliant.

 

When Does This Take Effect?

Distributors must be PACT compliant 90 days after the law was signed, or by March 26, 2021. However, shipping services have 120 days to enact their bans. For distributors and retailers to be PACT compliant, they must:

  • Register with the US Attorney General and the tax administrators in any state the product is sold.

  • Implement a third-party identity and age verification system for sales.

  • Verify the customer's age at the point of delivery.

  • Adhere to local tax laws where the product is sold.

  • Create a log of all transactions based on the name, age, and address of the customer and the person who delivers the ENDS.

  • This log must also record the quantity and brand of the product purchased.

  • Keep a log of failed delivery attempts due to a lack of age identification for five years.

  • The ATF can audit these logs at any time.

 

PACT regulations are forcing all vape distributors and retailers to use private freight shipping services that will support the age verification service. Please understand that these new shipping methods will cause the cost of shipping to rise significantly. Unfortunately, this is entirely out of our control, and we are working with carriers to mitigate the additional expenses.

 

What To Do Now

USPS has stated that they may continue to ship ENDS until April 26, 2021. After this date, we believe that the only shipping methods that will be available for ENDS products will exclusively be through private LTL freight companies.

We strongly advise that you place your order as soon as possible and consider ordering an additional couple months of inventory to buy your business some time while shipping carriers figure out a better solution.  

We appreciate your understanding as the industry works to overcome these difficult new regulations.

 

Erick Hernandez

CEO

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