Growing E-Cigarette Black Market in Panama, Majority are Counterfeits of Poor Quality

According to Panamanian media outlet ECO, despite a ban on e-cigarette sales in Panama, a consumer survey reveals that e-cigarette usage in Panama is as high as 5%, with 200,000 users.

The consumer survey shows that disposable e-cigarettes are highly popular among e-cigarette consumers in Panama. Industry experts also state that disposable e-cigarettes are the most commonly found type in the market.

Reportedly the disposable vaping products typically contain 2,500 puffs and cost $15. Refillable and open-system devices are less common and are priced higher, ranging from $20 to $75.

It is worth mentioning that during the investigation, the research team found that the majority of disposable e-cigarette products from the most common brand in Panama are counterfeit and of poor quality. These products have SKU codes that do not match those on the brand's official website.

It is understood that one of the main sales channels for these products is through online stores and social media sellers who have been embraced by e-cigarette consumers following the country-wide e-cigarette ban.

A survey reveals that the main countries of origin for these products are China, the United States, Europe (primarily Spain or Switzerland) and Mexico, with the entry ports being the United States, Colombia and Costa Rica.

In addition, international travelers arriving in Panama are allowed to import a small amount of non-combustible alternative products for personal use, while the Colon Free Zone plays a key role in smuggling illegal cigarettes into Panama. Unlike Panama, the other surrounding regions do not prohibit e-cigarettes, creating an ideal scenario for the e-cigarette black market due to inconsistent regulation.

Thomas Sanchez, Chairman of the Panama Association for Reducing Smoking Harm, warn that e-cigarette ban endangers consumers. Reports reveal that industry experts consulted believe the Law No. 315 (e-cigarette ban) serves as a catalyst for the consolidation of a large illegal e-cigarette market, increasing the advantage of harmful counterfeit products. Illegal devices may pose as fake and untested replicas of legitimate brands, potentially harming consumers.

In addition, experts argue that it is the act of combustion, rather than nicotine, that is truly harmful when smoking. However, despite this, combustible cigarettes are still allowed.

Alejo Campos, from Crime Stoppers in the Caribbean, Bermuda, and Latin America, stated that this ban will only expand the scope of criminal organizations. These groups will now have access to another illegal commodity, which they can sell within Panama or illegally export from the country.

References:

Panama: Increase in electronic cigarette smuggling