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E-cigarette company pays usage fee

Time: 2021-07-28

Views: 597

U.S. legislators propose a bill requiring e-cigarette companies to pay user fees

On July 27 news, according to foreign news reports, six US senators proposed legislation requiring e-cigarette manufacturers to pay user fees to the Food and Drug Administration (FDA) to help regulatory agencies better supervise. These costs will provide FDA with additional resources to strengthen oversight of the e-cigarette industry and raise awareness of the dangers of e-cigarettes.


According to a press release from Durbin’s office, U.S. Senate Majority Dick Durbin is with U.S. Senators Jeanne Shahin, Lisa Murkowski, Susan Collins, Tammy Baldwin, and Mitt Romney. The resource bill to prevent young people from smoking e-cigarettes was introduced to protect children from the dangers of e-cigarettes. U.S. Representatives Cheri Bustos and Brian Fitzpatrick will introduce supporting legislation in the House of Representatives.


"Big e-cigarettes have made nearly 4 million children addicted to e-cigarettes, creating an e-cigarette epidemic that is threatening our next generation, who will be addicted to nicotine and disease throughout our lives," Durbin said. "The FDA needs to clear the shelves of these dangerous and addictive products, and Congress needs to pass the "Prevent Youth Electronic Cigarette Resources Act", which will help provide the FDA with resources to better regulate this market. The health of our children cannot wait any longer. ."


The "Resources for the Prevention of Youth E-cigarette Smoking Act" will increase the total cost of tobacco users in fiscal year 2022 (FY) by 100 million US dollars and increase an index equivalent to inflation in the next few years. According to Durbin, the bill also authorizes the FDA to collect user fees from all manufacturers of tobacco products deemed by the FDA, including e-cigarettes.


At present, manufacturers of traditional combustible tobacco products pay usage fees to the FDA, but e-cigarette companies are exempted due to legal loopholes.

According to FDA regulations, the amount collected from various e-cigarette manufacturers will be proportional to their share of the entire tobacco market. The FDA will be able to use this additional revenue from e-cigarette user fees to conduct safety reviews of e-cigarette products, prevent the sale of e-cigarettes to minors, help support efforts to educate young people on the hazards of e-cigarettes, and strengthen the agency’s supervision and Law enforcement capabilities.


Earlier this year, Durbin introduced the bicameral tobacco tax fairness bill to reduce youth tobacco use by closing loopholes in the tax law that have long been used by the tobacco industry to avoid regulation and taxation of its products. The bill will also implement tax parity for all tobacco products, including the establishment of the first federal e-cigarette tax, and the first increase in tobacco tax rates in a decade.



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