Tobacco Asia

34 tobaccoasia PRODUCT NEWS 产品新闻 tobacco, but RJR attorney Christian Vergonis told justices that being "made from" tobacco does not meet the state tax code definition of being "made of tobacco or a tobacco substitute." "Tree sap extracted from a tree is not a tree. Vitamin C extracted from an orange is not an orange. Calcium extracted from milk is not milk. So, these extracts are not the product itself," Vergonis said. RJR seeks a US$16,000 refund on taxes it paid in 2020 after the Texas comptroller deemed Velo products taxable. Both a Travis County district court and the Third Court of Appeals sided with the company, agreeing the products fall outside the statutory definition. The district court also ruled that the comptroller's interpretation of state law violated the company's constitutional rights due to vagueness and unequal taxation. The comptroller's office, now led by acting comptroller Kelly Hancock, appealed. The comptroller argued that Velo pouches are chemically processed tobacco, similar to snuff, and distinct from FDA-approved nicotine replacement therapies as FDA has not approved Velo pouches as a nicotine replacement option. RJR countered that federal law already prohibits sales to minors and noted the FDA authorized marketing of ZYN nicotine pouches in January as appropriate for the protection of public health compared to cigarettes or smokeless tobacco, though FDA does not formally approve tobacco or nicotine products for consumption. Former comptroller Glenn Hegar's office previously ruled that e-cigarettes do not qualify as tobacco products and are not subject to tobacco taxes, a position the justices questioned in the Velo case. UK Proposes Vape Retail Licensing The UK government plans to better protect children from vaping risks by requiring retailers to hold a license to sell tobacco, vapes, and nicotine products. The move closes a major gap in the law, where previously any business could sell such products, allowing rogue traders to target children with cheap, colorful vapes in shops alongside sweets and toys. The proposed licensing scheme aims to crack down on illegal operators, empower enforcement officers to shut them down, and safeguard legitimate businesses. The initiative forms part of a call for evidence to shape the Tobacco and Vapes Bill, designed to create a smoke-free generation and curb youth nicotine addiction. Health minister Stephen Kinnock said, "We aim to close a major gap in the law—making it necessary for shops to hold a license to sell tobacco, vapes, and nicotine products. Our new proposals will better protect children by rooting out the rogue retailers blighting our high streets and help adults know which shops are selling legitimate products." The government is seeking expert input on vape flavors, nicotine strength, design, and industry compliance. It plans to regulate ingredients, ensure products do not deliver danger- ously high nicotine doses, and consider restrictions on features like digital screens. A new registration system for every product sold could prevent unsafe or misleading items from reaching the market. Under the proposals, retailers caught selling without a license in England and Wales could face unlimited fines or on-the-spot penalties of £2,500 (US$3,100). In Northern Ireland, courts could impose fines of up to £5,000 (US$6,200). Hazel Cheeseman, c.e.o. of Action on Smoking and Health (ASH), said the bill is "world-leading legislation" that could dramatically change tobacco and vape sales, protect children, and move the UK closer to a smoke-free society. Research from King's College London and University College London shows that plain packaging can reduce the appeal of vapes to children while still supporting adults trying to quit smoking. The study revealed that 53% of children aged 11 to 18 believed their peers would be curious to try vapes when exposed to branded packaging and flavored options. That figure fell to 38% when plain packaging with flavor descriptions was shown. Adults' interest in the products remained largely unchanged. The Tobacco and Vapes Bill, currently at committee stage in the House of Lords, will also restrict advertising, sponsorship, packaging, and product displays in shops. PMI Requests Extended IQOS Authorization Philip Morris International Inc. (PMI) presented evidence to the Tobacco Products Scientific Advisory Committee (TPSAC) on October 7 as part of the US Food and Drug Administra- tion's (FDA) review of the company's IQOS heated tobacco products. TPSAC, made up of independent scientific research- ers, advises FDA's Center for Tobacco Products (CTP) but issues nonbinding recommendations. The meeting focused on PMI's request to continue marketing current IQOS products as modified risk tobacco products (MRTP) while FDA reviews applications for IQOS ILUMA, the next-generation IQOS model. PMI says ILUMA could help even more legal-age adults switch away from combustible cigarettes. "The evidence presented at this meeting, as also noted by FDA, further supports the agency's original conclusions that led FDA to authorize the IQOS system as a modified risk tobacco product," said Stacey Kennedy, PMI US c.e.o. She urged FDA to maintain a timely review process for smoke-free products, highlighting that IQOS ILUMA has been under review for nearly two years and has shown strong global results in helping adults quit cigarettes. As of June 30, PMI estimates roughly 34 million legal-age consumers use IQOS globally, many of whom have stopped or significantly reduced cigarette use. The MRTP renewal covers two IQOS devices—the 2.4 and 3.0 system holder and charger—and three HEETS tobacco consumables: Amber, Green Menthol, and Blue Menthol. FDA originally granted MRTP status in 2020, allowing PMI to communicate that the IQOS system significantly reduces exposure to harmful chemicals compared to traditional cigarettes. PMI, which entered the US market in 2022 after acquiring Swedish Match, has invested over US$14 billion globally since 2008 in developing and commercializing smoke-free products.

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