Retail news: illegal trade, top distributors, HnB
T
he UK’s biggest trade association
for the e-cigarette industry says
its members are losing a significant
amount of business to companies
selling illegal products.
The Independent British Vape Trade Association
(IBVTA) is critical of the lack of enforcement and
lack of knowledge of vaping regulations among
Trading Standards officers.
In its report “The State of Compliance 2018” it
found that Trading Standards – the regional bodies
associated with local government areas – had only
taken action on around half the reports received on
non-compliant vaping products.
another 13% the shop removed the products volun-
tarily; 10% received a formal warning and 2% were
cautioned.
Distributor choice
Meanwhile, a new ECigIntelligence report has
taken a close look at distribution in the UK and the
reasons that vape retailers choose to work with
specific distributors.
It found that the British distribution network is
fragmented, with most vape stores purchasing
product from a number of suppliers.
Likewise, no single business-to-business supplier
dominates the market, according to research by
ECigIntelligence.
The main factors considered when choosing a sup-
plier are prices, margin, speed of delivery and post-
sales service.
Two thirds of councils have taken action on every
report they received, while 15% have taken no
action. A further 39.5% of local authorities have
carried out no investigations into non-compliance
with the Tobacco and Related Products Regulation
(TRPR), the act that brought the EU Tobacco
Products Directive (TPD) into UK law. The report adds that among independent and vape
store chains, supply has largely switched from
direct distribution by Chinese manufacturers to
UK-based distributors, probably because of their
shorter delivery times and post-sale services.
Enforcement action once a complaint was investi-
gated and found to be accurate was also poor. Tax on heated tobacco
E-cigs seized
The total number of enforcement actions reported
by respondents to this request was 114, the IBVTA
said. More than half of this was in the form of
advice, it added.
Beyond that, in 16% of cases non-compliant prod-
ucts were seized by Trading Standards, and in
In recent UK news, ECigIntelligence also reveals
that heated-tobacco products will receive their own
taxation category and rate of duty in Britain later
this year.
A rate and commencement date for the duty on to-
bacco consumables for heat-not-burn (HnB) prod-
ucts will be announced in the autumn budget,
likely to be in November.
About ECigIntelligence
ECigIntelligence is the leading provider of detailed global market and regulatory analysis,
legal tracking, and quantitative data for the e-cigarette, heated tobacco and combustible-
alternatives sector worldwide.
We offer tools to navigate the complex market and regulatory landscape of this sector
through independent, analytical and actionable data insights, in-depth country reports,
regulatory trackers and legal analysis. We offer customised research and consultancy.
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