North America: Market data & legal analysis of the nicotine sector

14th May 2024: US - Federal: The White House has released a statement on what it refers to as “China’s unfair trade practices concerning technology transfer, intellectual property, and innovation”, which it says “are threatening American businesses and workers”. In response, president Biden is directing his trade representative to increase certain tariffs. These include the tariff rate on lithium-ion batteries (used in non-electric vehicles), which will increase from 7.5% to 25% in 2026. This would impact batteries used in vaping and heated tobacco products (HTPs).
14th May 2024: US - Federal: The next director of the US Food and Drug Administration (FDA) Center for Tobacco Products (CTP) Office of Compliance and Enforcement will be John Verbeten. Verbeten comes to the CTP from the FDA’s Office of Regulatory Affairs (ORA), where he served as the deputy director for import operations enforcement within the Office of Enforcement and Import Operations (OEIO).
13th May 2024: US - Federal: The US Food and Drug Administration (FDA) has filed for scientific review modified risk tobacco product (MRTP) renewal applications submitted by Philip Morris for the following Iqos products: Iqos 2.4 System Holder and Charger, Iqos 3.0 System Holder and Charger, Marlboro Amber HeatSticks, Marlboro Green Menthol HeatSticks, and Marlboro Blue Menthol HeatSticks. In 2020 and 2022, the FDA issued modified risk granted orders – which are valid for a fixed time period – for these products. Public comments may be submitted on these applications through regulations.gov to docket FDA-2021-N-0408 for the Iqos 3.0 device and docket FDA-2017-D-3001 for the Iqos 2.4 device and the Marlboro HeatSticks products.
8th May 2024: US - Louisiana: House Bill 970, which would exempt nicotine pouches from the vapour product and alternative nicotine product directory, has passed the House and is now in the Senate, where it has gone through the second reading.
6th May 2024: US - Oregon: The Oregon Court of Appeals has upheld a Washington County ordinance banning all flavoured tobacco sales. The ordinance was approved in 2022, but it was not enforced because a circuit court judge overturned it. Circuit judge Andrew Erwin wrote that prohibiting the sale of flavoured tobacco must come from the state, not the county. The county appealed the judge’s decision, and the Court of Appeals found that the county is not preempted by state law. Businesses will be inspected each year to make sure they are complying with the ordinance.
2nd May 2024: US - California: Attorney general Rob Bonta has announced that the California Department of Justice is now accepting proposals for the 2024-2025 Tobacco Grant Program, which aims to reduce the illegal sale of tobacco products by providing approximately $28.5m in grant funding to eligible local agencies. The programme aims to reduce childhood addiction to tobacco products by supporting local partners who enforce the statewide retail flavour ban and similar local ordinances, and prosecute and penalise retailers who sell or market tobacco products to anyone under the age of 21.
29th April 2024: US - Federal: According to health and human services secretary Xavier Becerra on Friday (26th April), the Biden administration has delayed its decision over whether to impose a ban on menthol cigarettes: “This rule has garnered historic attention and the public comment period has yielded an immense amount of feedback, including from various elements of the civil rights and criminal justice movement. It’s clear that there are still more conversations to have, and that will take significantly more time.”
18th April 2024: US - Hawaii: Honolulu mayor Rick Blangiardi has signed Bill 1 banning the sale of herbal cigarettes to anyone under 21 years old. It will require posting a sign on or near vending machines selling the products that bears the statement: “The sale of herbal cigarettes to persons under 21 is prohibited”. The bill says: “Herbal cigarettes are made of herbs such as damiana, ginseng, catnip, and mint.” Honolulu is one of the first localities that specifically limits the sale of herbal cigarettes to under-21s. It is a city-county with a total population of 1m.
17th April 2024: Canada: The minister of finance presented the Federal Budget 2024, which proposes to amend the Tobacco and Vaping Products Act to allow information sharing between government departments for the effective administration and enforcement of the forthcoming tobacco cost recovery framework.
17th April 2024: Canada: Starting today, heated tobacco and oral tobacco tax increases to CAD11.61031 (USD8.42) per 50 g or a fraction of 50 g contained in a package.
11th April 2024: US - Ohio: A coalition of 14 cities in Ohio has filed a lawsuit challenging the state law that prevents cities and counties from enacting tobacco regulations that are stricter than the state’s. The plaintiffs claim the law violates Ohio’s constitution, specifically a line that says cities “have the authority to exercise all powers of local self-government and to adopt and enforce within their limits such local police, sanitary and other similar regulations, as are not in conflict with general laws”. The pre-emption law was passed by the state’s General Assembly as part of its budget proposal, and then vetoed for a second time by governor Mike DeWine before the General Assembly voted to override the veto in January. The case seeks a temporary injunction to keep the ban from going into effect on 24th April.

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