On December 27, 2020, Congress signed into law the “Consolidated Appropriations Act, 2021,” which, in part, amends the Prevent All Cigarette Trafficking (“PACT”) Act. Specifically, the law altered the definition of “Cigarette” in the PACT Act to include Electronic Nicotine Delivery Systems (ENDS). The law goes into effect March 27, 2021.
The definition of an ENDS is broad and covers “any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device,” and includes:
- e-cigarettes
- e-hookahs
- e-cigars
- vape pens
- advanced refillable personal vaporizers
- electronic pipes
- any component, liquid, part, or accessory of a device described [above] without regard to whether the component, liquid, part, or accessory is sold separately from the device.
15 USC 375(7). The new law includes the requirement that any person who sells, transfers, or ships for profit or advertises or offers for sale ENDS products in interstate commerce into Iowa must comply with a monthly reporting requirement. Monthly reporting must be submitted by the 10th day of the month following the activity. Reports should be submitted monthly, even if the person has not made shipments into Iowa during the reported month. 15 USC 376(a)(2). These reports are submitted to the Iowa Department of Revenue.
Along with your filing, be sure to include a memorandum or a copy of the invoice covering every shipment made during the previous calendar month into Iowa. Each memorandum or invoice must identify the following information:
- The name and address of the person to whom the shipment was made
- The brand and the quantity delivered to the person in the specific shipment and
- The name, address, and phone number of the person delivering the shipment to the recipient on behalf of the delivery seller