US import block on vapes could cut illegal sales by a third, BAT says

Core Viewpoint - A potential U.S. move to block imports of certain disposable vapes could reduce the unregulated e-cigarette market by up to one-third, according to British American Tobacco's CEO, although any significant impact is not expected before 2027 [1]. Group 1: Market Impact - The unregulated e-cigarette devices account for approximately 70% of U.S. e-cigarette sales, adversely affecting both vape and traditional tobacco businesses [1]. - A block on imports could lead to a decline in industry sales to below 50%, equating to a reduction of roughly one-third [1]. - The CEO indicated that the scale of the impact is difficult to predict due to existing supply chains and large inventories that would delay effects [1]. Group 2: Regulatory Developments - British American Tobacco has two active cases at the U.S. International Trade Commission (ITC) aimed at blocking imports of unregulated devices [1]. - An ITC judge previously ruled in favor of BAT in a patent dispute, recommending a general exclusion order against disposable vapes infringing its patents [1]. - A full ITC determination is expected in March, followed by a 60-day presidential review [1]. Group 3: Future Considerations - The CEO suggested that the U.S. Food and Drug Administration (FDA) may initiate a program to explore different approaches to vapes, potentially including flavored options [1]. - The FDA has been looking to expedite or streamline its processes after years of rejecting most applications for new nicotine products [1].