Most shop owners and online retailers selling vaporizers are undoubtedly aware that the landscape for shipping B2C and B2B is under rapid fire in our industry due to the recent amendment of the PACT / Jenkins Act. If this law goes into effect, the smoke shop industry as we know it will never be the same.
What is the PACT Act?
The Prevent All Cigarette Trafficking Act (PACT) Act initially went into effect in 2010 to better regulate the mailing of certain tobacco products via the United States Postal Service. Ten years later, the government introduced an amendment to the PACT Act simultaneously with the hefty Covid relief package, which the president approved with overwhelming support. However, along with this relief package came a vaguely written proposal that seems it should target tobacco in particular, not vaporizers or other similar non-tobacco products.
Long story short, due to policy changes and new restrictions on ENDS vaporizers (Electronic Nicotine Delivery Systems), and an unclear definition of what constitutes an ENDS unit, our industry is losing the nation's largest carriers. Therefore, Windship Trading must undergo internal policy changes to adapt to this new landscape.
What does this mean for shipping and receiving products?
UPS, FedEx, and DHL have already ceased carrying all ENDS and vaporizer items (including accessories). USPS first announced that it would continue to handle vaporizer items through April 25th, 2021. Fortunately, as of April 20th, the USPS announced that they would postpone the ban of ENDS units indefinitely.
Supply Chain Management: What it will look like for our industry.
For now, we can buy some time. However, if the PACT Act does end up going through, significant shipping policy changes will substantially affect the B2C and B2B industries. Below are a few of the critical points associated with these changes and how it affects the entire vape industry's supply chain.
What is Windship Trading doing to manage new shipping restrictions?
If and when the PACT Act restrictions begin, Windship Trading will utilize a network of regional carriers for vape items, USPS for non-vape items, and rely more heavily on freight carriers. These creative modifications will take some getting used to, but we'll be smooth sailing once we all nail down new workflows and methods.
How will smoke shops receive vape orders after PACT Act restrictions begin?
Our goal at Windship Trading is to provide a minimal gap in coverage and services that we offer our customers. We have negotiated deals with several regional carriers and are pursuing all possible exemptions as they are made available. We are confident in our ability to ship our B2B partners the products they need and continue to provide Dropship and 3PL services to our eCommerce partners.
What can smoke shops do to survive the PACT Act restrictions?
WST strongly recommends that customers modify shipping habits to allow for small LTL (Less than truckload) freight shipments to avoid the available regional carriers' exaggerated cost structures.
Order less frequently in bulk.
Consider ordering bi-monthly instead of weekly to aggregate your order volume into a single LTL shipment. Also, if you have more than one retail location, consider having all stores order on the same day. WST will load all orders onto a single pallet shipment to reduce cost for you.
Keep in mind, if this option is selected, the carrier must deliver to a single address requiring you to handle the distribution of your locations' orders. We can facilitate this by clearly marking all parcels on the pallet by the destination shop name or address.
Purchase heavier items to keep landed costs down.
Consider transitioning the ordering of certain heavy items to Windship Trading. Adding heavy items such as glass cleaners, detox products, butane, whip cream chargers, and more to your Windship orders can help keep your vaporizer landed costs as low as possible.
What documentation will smoke shops need to provide after the new regulations are in place?
To maintain the proper "Chain of Custody" per the new PACT Act guidance, we will need to obtain the following information from all customers to comply with new shipping requirements:
Business/Contact Information - Address, phone number, and point of contact for each location.
EIN -Employer Identification Number
State Resellers ID/Tax ID -Proof of operations in each state your operate store locations or warehouses
State Tobacco/Vape License - Proof of operations in each state your operate store locations or warehouses
Filling out the PACT/Jenkins Act Compliance Forms is easy.
If you already purchase from Windship Trading, we've put together a convenient form for current customers to upload the required documents for our filing. This cooperation will ensure a smooth transition from our existing service arrangement to the new PACT/Jenkins Act compliant processes to avoid potential service interruptions.
New to Windship Trading? Have more questions about PACT Act?
Contact us or request a wholesale account here. Our team will reach out to provide all available information about the new PACT Act regulations and vaporizer restrictions.