E-cigarette manufacturer JUUL Philippines has admitted facing importation delays following President Duterte’s pronouncement on the ban on e-cigarettes.
In a news statement, the Department of Finance (DOF) on Monday said the firm wrote a letter to Finance Secretary Carlos G. Dominguez III requesting the department’s assistance to allow the firm to proceed with the importations.
Mario Zinampan, the firm’s senior director for government affairs, pointed out that Republic Act 11346, or the Tobacco Tax Law, signed by the President last year “legitimizes vapor products in the Philippines.”
“JUUL also requested to meet with Dominguez to clarify the issue,” the DOF said.
Sought for comment, Dominguez told reporters in a Viber message, “I think they [JUUL Philippines] should write the executive secretary for clarification.”
The President made the statement in November last year on the total ban on the use and importation of vape following the first reported case of an electronic cigarette, or vaping-associated lung injury, in the country.
In the same letter of JUUL Philippines to Dominguez which was sent before RA 11467, or the law increasing taxes on alcohol and e-cigarettes, the firm expressed support to the new “sin” tax reform law, which also earmarks a substantial portion of revenues to the Universal Health Care program.
“JUUL Philippines fully supports the bicameral conference committee report… on increasing excise tax for alcohol, heated tobacco products and vapor products, which is now pending the signature of President Duterte. We share the view of the government that vapor products need to be responsibly regulated, and we commit to working with all our government agencies in ensuring faithful compliance to all laws governing this category,” Zinampan said in his letter.
Moreover, Zinampan said JUUL has committed to immediately stop accepting orders from its local retail partners in the country for its JUUL pods with flavors, such as mint, mango and crème, adding the company will only accept orders for tobacco and menthol pods.
Last January 6, JUUL Philippines also informed the Food and Drug Administration of its commitment to comply with the upcoming regulation and welcomed FDA’s jurisdiction over vapor products.
JUUL products, made by JUUL Labs Inc., are battery-operated devices that look like computer flash drives and contain nicotine salts that do not produce vapor, or visible emissions, when they are used.
Under RA 11467 signed into law by the President last January 22, a tax of P37 per milliliter will be imposed on salt nicotine vapor products in the first year, and additional P5 per ml per year until the rate reaches P52 per ml in 2024. Thereafter, the tax will be increased by 5 percent every year.
Heated tobacco products will be taxed with new rates of P25 per pack in 2020, P27.50 in 2021, P30 in 2022, P32.50 in 2023, and 5 percent yearly, thereafter.
A tax of P45 per 10 milliliter of conventional freebase vapor products will be imposed in 2020, P50 in 2021, P55 in 2022, P60 in 2023. Thereafter, the rate will increase by 5 percent every year.
The bill also imposes tax increases on alcohol products.