USPS Blocks Shipments from Major Illicit Vape Distributor

USPS Vape Ban

The U.S. Postal Service (USPS) has cracked down on a major distributor of unregulated vapes, blocking it from using its services for business shipments in a significant blow to the multi-billion dollar illicit e-cigarette industry. This action, revealed in letters reviewed by Reuters, stands to benefit large tobacco companies like Altria and British American Tobacco (BAT), which have long battled against the flood of unauthorized vapes, mostly from China.

In a letter dated July 15, the USPS informed New York-based distributor Demand Vape that it was revoking its “mailing exception” for shipping electronic nicotine delivery systems (ENDS). This decision was made after the New York City Law Department provided evidence that the company’s shipments broke laws, including selling vapes that lack the required U.S. Food and Drug Administration (FDA) authorization and violating a local flavor ban.

Under a 2021 law, the USPS is generally restricted from mailing vapes, with limited exceptions for domestic business-to-business shipments that require a special permit and must comply with all relevant laws. Demand Vape, which sells to some 5,000 retailers across 49 states, stated it complied with relevant laws and is contesting the revocation, arguing the industry operates in a “regulatory grey zone” as the FDA has only authorized 39 e-cigarette products.

FDA registered vape shipments from China

This move is part of mounting pressure on the unauthorized vape market, which BAT estimated was worth around $8.05 billion last year. Recent U.S. import tariffs, seizures at ports, and FDA warning letters to distributors have already led to empty shelves in some vape stores. The USPS has reportedly provided NYC’s Law Department with a list of other vape firms with mailing exceptions for further review, potentially further limiting shipping options for the unauthorized vape industry, as other large carriers like FedEx refuse to ship vapes.

Matthew Ma
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