The ATF announced on September 23 that it has joined the interdepartmental Trade Fraud Task Force to strengthen federal law enforcement against illegal, false reporting, and smuggling of vapes and tobacco products. ATF will include the registration, reporting, transportation, and record checking authority for interstate sales of electronic nicotine delivery systems under the Prevention All Cigarette Trafficking Act (PACT Act) in the working group. ATF stated that this will enhance the tracking capability of related products entering the domestic transportation and distribution network from US entry points.

Core Overview

• ATF joined the Trade Fraud Task Force on September 23 to participate in combating illegal, false declarations, and smuggling of vapes and tobacco products.
• ATF is responsible for implementing registration, reporting, transportation, and record checking requirements related to interstate sales of vapes under the PACT Act, and maintaining a non compliant list.
• ATF Director Rob Cekada explicitly mentioned “illegal Chinese vapes” in the statement, but the notification did not disclose specific brands, companies, or new cases.
• At the time of ATF’s accession, CBP is also studying the expansion of import supply chain document requirements, including the collection of foreign export declaration documents.
• Currently, the relevant plan is still in the early stage of rule formulation.

ATF Incorporates PACT Act Authority Into Trade Fraud Working Group (1)

ATF incorporates PACT Act enforcement authority into joint operations

The Trade Fraud Task Force was launched in August 2025 by the US Department of Justice (DOJ) and the Homeland Security Investigations (HSI) to investigate the evasion of US import requirements through false customs declarations, mislabeling, and other fraudulent means.
After ATF’s addition, it has incorporated its PACT Act enforcement authority for interstate sales of tobacco products and electronic nicotine delivery systems (ENDS) into the working group.
The PACT Act was passed in 2010 and expanded to ENDS products in 2021.
According to ATF regulations, operators who sell or promote related products in interstate commerce must register with ATF and the state or local tax authorities in the region where the products are shipped, and submit sales and transportation reports to the relevant state and local authorities in accordance with applicable requirements.
Operators engaged in remote sales must also comply with applicable labeling, delivery, record keeping, age verification, as well as state and local licensing, regulatory, and tax requirements.
ATF also maintains the PACT Act non compliant list. The listed operators may be subject to transportation restrictions, and carriers and other delivery service providers are not allowed to deliver PACT Act covered products to the listed operators.
ATF also has the authority to inspect relevant sales records and transfer suspected illegal cases for criminal prosecution.

Law enforcement covers the domestic circulation network of products after they enter the country

ATF stated in its announcement that its joining will enhance the working group’s ability to track illegal vapes and tobacco products entering the domestic circulation network from US entry points.
The enforcement scope of the Trade Fraud Task Force covers importers, customs brokers, downstream distributors, commercial end-users, and other supply chain participants, with a focus on false declarations, incorrect origin information, illegal transshipment, and evasion of tariffs.
The US Department of Justice stated in July that the working group had been established for less than a year, and the related cases involved over $1 billion in civil and criminal recovery, fines, asset confiscation, and publicly charged losses.
This number covers all trade fraud cases handled by the working group and is not a special enforcement amount for vapes.
After ATF joined, its authority for ENDS interstate registration, reporting, transportation, distribution, and record checks also entered the scope of enforcement by the working group.

ATF Incorporates PACT Act Authority Into Trade Fraud Working Group (2)

ATF chief names’ illegal Chinese vapes’

ATF Director Rob Cekada stated on September 23 that cross departmental cooperation will be used to combat criminal networks profiting from trade fraud, and listed “illicit Chinese vapes” as one of the products he hopes to remove from the US market.
ATF did not disclose specific Chinese manufacturers, vape brands, importers, or distributors in this announcement, nor did it announce any new seizures or lawsuits directly related to joining the working group.
ATF also cited “industry estimates” stating that unauthorized vapes currently account for the majority of vape sales in the United States, with most products manufactured overseas and entering the domestic distribution chain. ATF did not disclose the specific source or proportion of this estimate in the press release.

CBP simultaneously studies expanding import supply chain document requirements

At the time of ATF joining the working group, the US Customs and Border Protection (CBP) is also researching ways to improve the transparency of import supply chain information.
CBP issued a pre rule making notice on September 2, considering requiring importers to provide export declaration documents submitted by foreign exporters to local customs, and studying ways to strengthen information collection and supply chain tracking of import related parties.
CBP stated that the relevant measures aim to help identify illegal transshipment and import activities that evade US customs and trade regulations.
The plan is still in the stage of soliciting opinions and has not yet formed a final regulation.
2Firsts previously reported that Chinese customs data showed that China’s exports of vapes and related products to the United States amounted to approximately $1.98 billion in the first seven months of 2026, a year-on-year increase of 8.4%; In July, exports amounted to approximately 404.2 million US dollars, a year-on-year increase of 53.5%.
The above Chinese customs data reflects the declared export scale, without distinguishing whether the relevant products have obtained marketing authorization from the US Food and Drug Administration (FDA).

ATF and FDA have different regulatory responsibilities

ATF joining the Trade Fraud Task Force does not change FDA’s regulatory responsibility for tobacco product market access.
The FDA is responsible for marketing authorization and related product regulation of tobacco products such as vapes.
ATF is responsible for the registration, reporting, transportation, distribution, and record checking requirements related to interstate sales of vapes under the PACT Act; The Trade Fraud Task Force investigates false import declarations, incorrect labeling, illegal transshipment, tariff evasion, and other trade fraud behaviors.
ATF has joined the joint action to incorporate its domestic transportation and distribution enforcement authority into the Trade Fraud Task Force.