The PACT Act has NOT yet gone into full effect as the United States Postal Service failed to publish their final guidance by the deadline. We are sill shipping via USPS but expect to the USPS option will be shut down at any time. Check back for updates.
The PACT Act was quietly slipped into the omnibus spending and COVID relief bill that was passed by Congress and then signed into law by President Trump in December of 2020. Given the size of the bill and the fact that legislators were only given a couple of hours to read it before having to vote, few people noticed that language was included on page 5,136 that amounted to a ban on sending vape products through the United States Postal Service (USPS).
Indeed, the most significant impact of the PACT Act is the prohibition against mailing vape products to customers via the USPS, thus putting online sales in jeopardy. Even nicotine-free vape products, CBD and aromatherapy fluids that are meant to be vaped are included in the ban.
Vape customers can expect to see a dramatic increase in state levied tobacco taxes as the PACT Act requires online companies to collect, report and remit all state excise and sales taxes due (check out our graphic and blog post to see what rate you will pay based on your home state).
The Act also requires all vape companies to register with the Bureau of Alcohol, Tobacco and Firearms along with every state they sell to. While that sounds simple enough, figuring out how to properly register with each state is no mean feat. Let's just say the states don't make it easy. Navigating the obscure and bureaucratic pathways to licensing and registration is a monumental task in and of itself.
Among other things, the Act also imposes extremely burdensome reporting requirements that mandate that vape companies submit detailed reports to every single state they do business in by the 10th of each and every month and imposes stiff penalties and potential jail time--even for honest mistakes.
Like most vape companies, we had initially hoped that FedEx, UPS and other major carriers would step in to fill the void left by USPS shipping. However, that was not to be. FedEx voluntarily backed out of shipping vape products and UPS, DHL and all other major carriers followed suit. It speaks to just how onerous compliance with the PACT Act is that even large companies do not want to face the burden and headache of attempting to comply with this complex legislation.
Kai's Virgin Vapor is now in negotiations with a number of smaller private carriers. These companies are already set up to transport wine, beer and spirits for the alcohol industry--another industry that is heavily regulated. The experience these companies have gained shipping alcohol enables them to quickly pivot to vape product transportation.
We will update this page as we finalize our negotiations with these carriers. However, generally speaking, we anticipate the following:
✓ There will be an increase in shipping costs, possibly a significant increase, although we are working hard to keep costs as low as possible.
✓ We may not be able to ship to all zip codes, at least initially. Zip codes in most if not all major cities will be covered, however, we may not be able to serve all zip codes in more rural areas, at least to begin with. We will post a list of zip codes we can ship to as soon as it becomes available.
✓ If you are in a zip code we will not be able to serve immediately after the PACT Act goes into effect, we will work with you as best we can to ship your e-juice to a vape shop near you. We will waive any minimum order quantities so that your local vape shop can order from us just for you if necessary.
✓ The initial couple of months after the PACT Act goes into effect may be a bit bumpy. Vape companies, U.S. states and shipping carriers were all given an extremely short period of time to figure out compliance and a great deal of uncertainty remains. Please be patient as the vape industry navigates this extremely challenging new regulatory landscape.
While we are doing all that we can to prepare for the major changes mandated by this legislation, we want to help you get ready also.
✓ Adult I.D. & Signature on Delivery: You will soon be required to show identification and to sign for any vape mail package. Think about where you can have packages delivered so an adult can sign for them. This might be your home address, the home of a friend or relative, or your work address depending on your situation.
✓ Increased Shipping Costs: We are working hard to keep shipping costs low but some increase seems inevitable. Consider placing fewer larger orders rather than more frequent smaller orders. If you purchase two months supply of vape juice at a time instead of just one you can keep overall shipping costs down.
✓ Increased Shipping Times: Initially, shipping times may be increased as vape mail carriers struggle to figure out cross country transportation methods. It may take a bit more advanced planning in the beginning to make sure you don't run out of vape juice. Plan to place your order well in advance of when you will run out of e-juice until things settle down and you know what transit times to expect.
✓ Increased State Tobacco Taxes: Prepare for a significant increase in state imposed excise taxes on vapor products. Many states have already or are about to add very significant taxes to vapor products. As part of the PACT Act, all vape companies will be responsible for collecting those taxes from you and paying them to the states so you will begin to see significant taxes added to any vape product order.
✓ Stock Up Now: Stock up on vape juice before the USPS vape mail ban hits on April 26th—you’ll save on shipping costs & won’t risk running out during the inevitably bumpy transition period.
We hope these tips will help you plan ahead for this difficult transition period. We at Kai's Virgin Vapor are committed to our customers and will do everything we can to ease this transition. Check back with this FAQ page often for updates. We will provide details here as soon as we have them available.
Together, we'll get through this!