NACS Submits Comment Letter on Illicit Nicotine Products in U.S. Trade Review
The National Association of Convenience Stores (NACS) has submitted a comment letter to the Office of the United States Trade Representative (USTR) in response to a proceeding reviewing global unfair trade practices, specifically focusing on illicit nicotine products within the U.S. NACS asserts that the U.S. Vape market has become dominated by illicit products, and it calls upon the USTR to secure binding and enforceable commitments during relevant investigations and bilateral engagements.
Key Highlights
- The National Association of Convenience Stores has submitted a comment letter to the USTR addressing the issue of illicit nicotine products within the context of an investigation into global unfair trade practices.
- NACS states that the U.S. Vape market is now dominated by illicit products—primarily disposable Vapes lacking marketing authorization from the FDA.
- Some estimates suggest that more than 80.00% of the products currently in the U.S. Vape market are illicit.
- NACS contends that these products pose risks to U.S. public health, the operations of legitimate businesses, and national security.
- NACS urges the USTR to seek verifiable and enforceable commitments from China, including measures to prevent the export of unauthorized Vapes to the U.S., strengthen enforcement of export regulations, ensure the accurate declaration of tariff codes and countries of origin, and establish ongoing monitoring mechanisms.
Background: Trade Review and NACS Submission
April 16, 2026. According to the National Association of Convenience Stores, the organization submitted a comment letter this week to the Office of the United States Trade Representative (USTR) in response to a trade proceeding reviewing global unfair trade practices.
The letter focuses on illicit nicotine products manufactured in China and shipped to the United States in violation of U.S. law.
NACS Claims U.S. Vape Market Dominated by Illicit Products
NACS stated that the U.S. Vape market has become dominated by illicit products—primarily disposable Vapes manufactured in China—which have not obtained the marketing authorization required by the U.S. Food and Drug Administration (FDA).
NACS noted that although the sale of these products in the United States is illegal, they remain widely available in the market; the association added that some estimates suggest illicit products now account for more than 80% of the Vape market.
Illicit Vape Products Raise Public Health and Business Concerns
In its letter, NACS asserted that the export of these products to the United States poses a health threat to the American public—including children—and undermines the financial sustainability of legitimate U.S. businesses, including retailers, suppliers, and manufacturers.
NACS further stated that the entry of these products into the U.S. market also presents national security risks.
Impact on Retailers and Supply Chain Integrity
NACS pointed out that illicit supply chains pose a continuous and direct threat to the entire distribution chain, including law-abiding retailers.
Compliant stores lose sales to competitors willing to sell unauthorized products; consequently, they forfeit not only sales of Vape products but also the associated sales of fuel, food, and other convenience goods.
NACS Urges USTR to Secure Enforceable Commitments from China
NACS requests that the USTR, within the scope of this investigation and related bilateral engagements, seek binding and enforceable commitments from China.
Proposed Measures to Strengthen Enforcement and Compliance
According to the requests put forth by NACS, these commitments should include:
- Requiring Chinese authorities—including the State Tobacco Monopoly Administration and other relevant regulatory bodies—to implement and maintain effective controls to prevent the export to the United States of Vape products lacking FDA marketing authorization;
- Ensuring the effective enforcement of existing export regulations that mandate Vape products comply with the regulations of their destination markets, including U.S. regulations;
- Ensuring that exported products are declared using the correct Harmonized Tariff Schedule (HTS) codes, declared values, and countries of origin;
- Establishing transparent, verifiable obligations, objective benchmarks, and ongoing oversight mechanisms to verify compliance.
About NACS and Its Industry Role
According to its official website, NACS membership comprises convenience and fuel retail companies, as well as suppliers, with operations spanning multiple countries. Through its membership network, trade shows, and industry programs, the organization connects upstream brands, supply chains, and retail stores.
