Key Takeaways
- NACS submitted a comment letter this week to USTR in a trade proceeding on unfair trade practices worldwide.
- NACS said the U.S. ENDS market is dominated by illicit products, mainly Chinese-made disposable e-cigarettes sold without FDA marketing authorization.
- The group said some estimates suggest more than 80.00% of the U.S. ENDS market consists of illicit products.
- NACS said these products create health threats, harm legitimate U.S. businesses, and create national security risks.
- NACS asked USTR to seek enforceable commitments from China covering export controls, enforcement of destination-market rules, correct product classification, and ongoing oversight mechanisms.
2Firsts, April 16, 2026
According to NACS, the association this week submitted a comment letter to the Office of the United States Trade Representative in a trade proceeding examining unfair trade practices worldwide. The letter focuses on illicit nicotine products produced in China and shipped to the United States in violation of U.S. law.
NACS said the U.S. ENDS market is dominated by illicit products
NACS said the U.S. electronic nicotine delivery systems market has become dominated by illicit products, primarily disposable e-cigarettes manufactured in China and sold without the marketing authorization required by the U.S. Food and Drug Administration.
NACS said those products remain widely available despite being unlawful to sell, and added that some estimates suggest more than 80.00% of the ENDS market consists of illicit products.
NACS said the products threaten health and harm legitimate businesses
In the letter, NACS said the export of these products into the United States creates health threats for Americans, including children, and harms the financial viability of legitimate U.S. businesses, including retailers, suppliers, and manufacturers. NACS also said the sale of these products into the United States creates national security risks.
NACS added that this illicit supply causes direct and ongoing harm across the supply chain, including to law-abiding retailers. Stores that comply with regulations lose sales to competitors willing to sell unauthorized products.
As a result, compliant retailers lose not only ENDS sales but also associated purchases of fuel, food, and other convenience items.
NACS asked USTR to seek enforceable commitments from China
NACS requested that USTR, in connection with the investigation and related bilateral engagements, seek a binding and enforceable commitment from the People’s Republic of China.
According to the letter, such commitments should require the PRC, including the State Tobacco Monopoly Administration and other authorities, to implement and maintain effective controls preventing the export of e-cigarette products to the United States without FDA marketing authorization;
ensure meaningful enforcement of existing export rules requiring e-cigarette products to comply with destination-market regulations, including those of the United States;
ensure exports are correctly classified with proper Harmonized Tariff Schedule codes, declared value, and country of origin;
and establish transparent and verifiable obligations with objective benchmarks and ongoing oversight mechanisms to confirm compliance.
Image Source: NACS
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