Restrictions on shipment of vaping products could impact hemp industry

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Companies that sell e-cigarette products online, including those that use CBD cartridges, will be forced to find alternatives to the U.S. Postal Service to ship their products, and will face other regulations this summer.

This is because in late December, when Congress approved another appropriation bill to keep the government running, lawmakers also passed the "Preventing Online Sales of Electronic Cigarettes to Children Act", which prohibits USPS from shipping e-cigarette products.

Although the legislation specifically targets nicotine cigarettes, the legal definition is so broad that cannabis companies must be prepared to comply.

"To be clear, the law does not prohibit or even target the cannabis industry. However, if they are industry participants selling vape products, it will definitely affect them." said Rod Kight, a cannabis lawyer in Asheville, North Carolina.

The legislation went into effect in late March (90 days after signing), but the USPS must issue its rules within the next 120 days.

According to Kight, sellers of vaping products must comply with:

FedEx has stated that it will not provide e-cigarette products.

Kight said: "Many of them are already undergoing age verification." "So I think it will be a bigger project for some people."

The term "electronic nicotine delivery system" in the law is widely used for any product that includes "the delivery of nicotine, flavor, or any other substance to the user from the device."

The CEO of Blinc Group in New York is responsible for the development and supply of cannabis vaping hardware. He called the new restrictions "another attempt by the government to "demonstrate" nicotine vaping."

Arnaud Dumas de Rauly, co-founder and CEO of Blinc Group, said: "In other words, the most important concept of this part of the bill is its intent: that is to curb nicotine atomization, not marijuana."

"This bill refers to the prohibition of the use of vaping products and includes the term "or any other substance", which is too broad and has no legal value. In addition, since marijuana is still illegal within the federal government, we don't think it should How will the ban apply."

However, Kight said that companies selling electronic products must understand the law and understand its requirements. Vaping companies must also know the state and local taxes that apply to online sales.

Gregory Conley, president of the American Vaping Association, said his organization lobbied Congress to find an alternative method to prohibit the delivery of vaping products through the USPS, but "this idea has been completely resisted."

"Now you have a very broad definition that can capture CBD liquid and electronics that don't contain any nicotine," Conley said.

Penalties for violating the law may include three years in prison, but Conley said it is more likely that a company will face a high fine and be shut down.

Conley said that companies should be prepared to hire lawyers and consultants to browse the regulations. He said that the impact of the rules will depend on the strictness of the rules.

Conley said: "Because this industry, especially the CBD, is full of traitors, and traitors often fail to comply with the law." "Therefore, there will be more companies and more risk-averse companies complying with the law, and they will incur The additional cost may reduce their profits.

"At the same time, in the CBD field, there will be late-night snack companies everywhere, especially in my opinion, this is not in compliance with the law, because many state regulatory agencies are not even aware that these products may fall under their jurisdiction. ."

He said: "This is very bad for nicotine vaping products that will get most of the enforcement rights."

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