The Department of Trade and Industry (DTI) of the Philippines has issued an administrative order requiring all nicotine vapor products and non-nicotine products to obtain a valid Philippine Standard (PS) license by December 31, 2024. These certification requirements apply to all related products planned to be imported, distributed and sold in online platforms, digital marketplaces and physical stores in the Philippines.
Manufacturers, importers and distributors who fail to obtain PS certification on time will violate the Act on the Regulation of Nicotine Vapor and Non-Nicotine Products (RA 11900) and face fines and possible imprisonment.The penalties increase with the number of violations, with a fine of 100,000 Philippine pesos (about US$1,700) for the first violation, double the fine for the second violation, and double the fine again for the third violation, and may face up to 3 years in prison.
The Philippine government has taken action to crack down on e-cigarette products without tax invoices and violations of PS certification requirements, including suspending the sale of some brands of e-cigarettes. The DTI plans to gradually remove the remaining illegal e-cigarette product stocks in the market and strive to eliminate the sale of non-compliant e-cigarettes by 2025.
The PS certification process requires factory inspections and covers the entire process of product production, quality inspection and distribution. Products with valid PS licenses are allowed to be sold, and all products circulating in the market must be affixed with the PS logo to ensure that consumers can identify compliant products.
The new regulations set a transition period, allowing products with imported commodity clearance (ICC) licenses to be sold until the existing inventory is exhausted, but all PS licenses must be converted by the end of 2024. The DTI has issued supplementary certification guidelines and plans to strengthen law enforcement and supervision to ensure that the new regulations are effectively implemented.
In summary, the Philippine government has issued new regulations requiring e-cigarette products to hold PS certificates and impose severe penalties for violations. This move aims to strengthen supervision of the e-cigarette market and ensure that consumers can purchase compliant and safe products.
GUUTUU needs to review the e-cigarette products it sells in the Philippines to ensure that all products comply with the PS certification requirements issued by the Office of Special Authorization for Vaporized Nicotine and Non-Nicotine Products (OSMV), a department under the Department of Trade and Industry (DTI) of the Philippines. This includes the entire process of product production, quality inspection and distribution, as well as specific technical standards for battery safety and e-cigarette oil.
According to the new regulations, products that have not obtained PS certification will not be sold in the Philippine market and may face heavy penalties. Therefore, GUUTUU actively communicated with OSMV to understand the certification process and requirements, and submitted the necessary application materials to ensure that the products can pass the certification smoothly.
GUUTUU strengthens market compliance management to ensure that sales activities in the Philippine market comply with local laws and regulations. This includes but is not limited to registering products, obtaining business licenses, complying with packaging standards, and paying taxes. In addition, GUUTUU closely monitors the regulatory dynamics of the Philippine government on the e-cigarette market and adjusts sales strategies and risk management measures in a timely manner.
Finally, GUUTUU establishes a risk prevention and control mechanism to deal with possible compliance risks. This includes strengthening internal compliance training, improving employees’ compliance awareness and capabilities; establishing compliance monitoring and reporting mechanisms to promptly detect and correct violations; and developing emergency plans to deal with possible emergencies.
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