What Is The Pact Act
The PACT Act or the Prevent All Cigarette Trafficking Act was first passed in 2009 as an amendment to the former Jenkins Act of 1949.
This Act aims at countering illicit trafficking and tax evasion which previously allowed interstate shippers to disclose cigarette sales to state tobacco tax administrators.
Passing the PACT Act banned (among other things) USPS from distributing cigarettes and smokeless tobacco products directly to customers.
Congress recently passed the PACT ACT amendment to include regulations on e-cigarette products to include in its definition the use of vaping products within the cannabis industry.
This provision was signed as part of the COVID-19 relief bill on December 27, 2020, with e-cigarettes and other smoking products as the subjects of this provision.
Signing of the PACT Act now mandates, in addition to the non-mailing requirements, anybody selling cigarettes or smokeless tobacco to file with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The PACT Act amendment includes new regulations regarding the shipping of Electronic Nicotine Delivery Systems (ENDS) products that will now include hemp and CBD vapes.
With this amendment, the US Postal Service (USPS) and FedEx will be required to regulate and stop the delivery of vaporizers.
FedEx has confirmed they will stop shipping any vaping products on the 1st of March 2021.
- Seller must register with the U.S Attorney General.
- Shoppers must provide information about their age and this will be stored in a database.
- Upon delivery, the signature of the customer is required.
- Private shipping companies’ services must be used instead of USPS and FedEx.
- According to the state and local taxes, any required tax stamp must be fixed on the product for delivery.
- Retailers must provide details about every transaction including the customer’s name and address, and the type and amount sold to the person to the tax administration.
- Sellers must keep a 5-year record of an interrupted delivery that may be due to a violation of the Pact Act.