European e-cigarette regulations need to change

In June of this year, 12 European countries, led by Denmark, called on the European Commission to create new legislation that would include a ban on flavored vapes and limits on nicotine content. The topic of electronic cigarettes is a sensitive one, even if its consumer market is still small compared to the so-called traditional combustible tobacco products.

In fact, the EC was expected back in January to publish new guidelines to update the 2009 texts, but at the last minute officials in Brussels withdrew their proposals, citing the need for more work and research on them.

As it often turns out, however, there are more nuances to the picture than simple black and white.

The advent of vapes

Electronic cigarettes, which quickly gained popularity, also in Bulgaria, have stirred a revolution in the market. They are, according to a number of studies, not only a less harmful alternative for people but also an opportunity for older and long-term smokers to completely give up conventional cigarettes. For example, in the UK, e-cigarettes are recommended to active smokers who want to quit traditional smoking.

What no one could predict was that a significant group of users who had never smoked before would also turn to these devices, namely the youth. More and more teenagers in Europe - including those in Bulgaria - use modern devices to the extent that the public, the authorities, and even the vape companies themselves are looking for ways to deal with this situation. The manufacturers keep saying that the new products are not recommended for non-smokers and minors, but nevertheless, their products reach young people.

Another big problem is that there are unregulated products on the market that are not offered by established manufacturers, and they can even be dangerous to health. They fall under almost no production control, and it is not entirely certain what they contain.

For example, media publications from this summer revealed that cannabis vapes are being distributed in Bulgaria. They contain a derivative of the main psychoactive substance in cannabis, which has been banned in the country since last year.

That is why the vaping industry is demanding compliance with the already established rules and penalties for those who do not comply with them.

In Bulgaria, some measures have already been introduced to control electronic cigarettes - they are subject to excise duty and must have a label on their packaging, and vapes, even if they do not contain nicotine, cannot be sold to minors.

The sector considers these moves to be correct, insisting that the requirements must be respected by both large and small players in the market equally. But is there anything else companies can do?

The size of the problem in numbers

The tobacco industry actually seems pretty united in its views on the regulations. There's an agreement that there are a lot of these, but that they are also necessary because it gives clear rules and allows for fair competition.

During a presentation to journalists, representatives from Japan Tobacco International (JTI), a multinational manufacturer of tobacco products and vapes, shared data on the negative effects of illegal cigarettes. One in 10 cigarettes smoked worldwide is illegal, which equates to 570 billion illegal cigarettes smoked worldwide each year. 

Separately, the fiscal effect must be taken into account – calculations show that cigarette smuggling costs countries 40-50 billion dollars in lost tax revenue per year.

According to experts, the illegal trade in cigarettes and tobacco products has undergone a major change over the years. If in the beginning, it meant buying legal, genuine products and diverting them for sale to other markets, subsequently the illegal market has switched to producing entirely illegal brands created only for illegal trade.

Thus, criminal activity has focused on the production of counterfeits - copies of well-known international brands. Online illegal trade of tobacco products is the new current trend, and it remains to be seen whether heated devices will also fall victim to this market, say JTI experts involved in work on the topic.

For that company, fighting the illegal market is a priority and it tries to cooperate with the law enforcement authorities in the countries where it sells its products. According to JTI, this is in the interest of everyone - consumers who have chosen to use its products get legally manufactured products, and states collect more revenue in their budgets from excise duty and a reduced crime environment.

However, the illegal market is far from the only difficulty facing the institutions.

New devices are emerging that are a 'challenge for governments' from a regulatory perspective, as 'innovation levels are high' and research into new technologies is yet to develop," said Ramunas Macius, Vice President Fiscal Affairs and Anti-Illicit Trade at JTI.

According to him, traditional cigarettes are currently strictly regulated all over the world, while there is no single and consistent regulatory framework for their electronic equivalents and heated products.

Specifically in the European Union, if a producer wants to put a smoking product on the market, they only have to notify the EC about it. Of course, the process involves a number of documents, licenses and clinical evidence from tests conducted on the safety of the product. For comparison, in the US, the pass-through regime implies applying for approval after proving that the product in question does not harm public health.

Different countries can treat products differently, too. Sometimes they create lighter regulations for vapes and heating devices. 

"A large number of countries do not know how to deal with the new challenges of innovation in the tobacco industry, with approaches ranging from no regulation to outright bans," says Macius.

He warns that if a product gets banned, an illegal alternative will be offered on the market.

The more something gets banned, the more initiative there is for the criminal world to respond to the consumer demand," says Macius, noting that consumers are not always aware of the risks they take by purchasing illegal products or engaging in illegal trade.

On the bright side

And although the situation at the EU level is far from good, in Bulgaria, things seem stable. According to data from joint studies of the major tobacco companies, illegal cigarettes in Bulgaria account for 2.1% of the total consumption, while in other Central and Eastern Europe countries this share reaches double-digit levels. In Czechia, for example, it is 17.6%, in Slovenia – 16.5%, in Hungary – 13.1%, in Moldova – 10.9%, in Montenegro – 10.1%.

Macius made a prediction that in the future there will be more and more innovative alternative products on offer.

According to him, there is much more research to be done on products that have the potential for reduced health risk, which could lead to different regulations for them.

In the coming decades, it is unlikely that governments will be able to create a world without nicotine, maybe it will be something halfway there, but let's keep the option of having a choice for consumers," appealed the expert.

Translated by Tzvetozar Vincent Iolov