Decree: Prohibiting the Commercialization of Electronic Cigarettes

June 06 2022

Decree prohibiting the circulation and commercialization of Electric Cigarettes of the Ministry of Health

On May 31, 2022, a decree prohibiting the circulation and commercialization of Electronic Nicotine Consumption Systems (“ENCS”), Similar Systems without Nicotine (“SSWN”), Alternative Nicotine Consumption Systems (“ANCS”), electronic cigarettes and vaporizing devices with similar use, as well as the solutions and mixtures used in such systems (hereinafter as the “Decree” and all the electronic cigarettes and vaporizing devices as “Electronic Cigarettes”), went into effect after its publication in the Federal Official Gazette (“OGF”) by the Ministry of Health.

Relevant background

On February 19, 2020, a decree was published in the Federal Official Gazette, through which the Ministry of Economy prohibited the entry and exit of “vape devices” to national territory.

On July 16, 2021, a decree was published in the Federal Official Gazette, through which the Ministry of Economy modified the descriptions found in the General Import and Export Taxes Law (hereinafter the “Law”), which, for the first time, mentioned electronic cigarettes and vaporizers through the established SEAN, SSSN, and SACN terms.

On October 19, 2021, the Plenary of the Supreme Court of Justice (hereinafter “SCJN”), solved the Thesis Contradiction under file number 39/2021, in which it established the unconstitutionality of article 16, section VI of the General Law for Tobacco Control, which prohibits “commerce, sale, distribution, exhibition, promotion or production of any object that is not a tobacco product that contains any brand elements or any type of design or signal that identifies it with tobacco products”, arguing that it failed the proportionality test and  violates the right to freedom of commerce.

On October 22, 2021, a decree was published in the Federal Official Gazette, through which the Ministry of Economy prohibited in any way, the import and export of all Electronic Cigarettes into Mexican territory.

On April 27, 2022, the House of Representatives approved the ruling that enacts the General Import and Export Tax Law, which is yet to be published. The aforementioned law prohibits the import and export of all Electronic Cigarettes.

On May 19, 2022, the Federal Commission for the Protection against Health Risks (“COFEPRIS” for its acronym in Spanish) in coordination with the Ministry of the Interior, issued a maximum health alert “due to the health risks posed by products commonly known as vapers in all their forms“.

The aforementioned alert references the content of Vitamin E acetate in Electronic Cigarettes, a toxic substance that causes acute respiratory illness and even death. Due to this, health surveillance actions and verification inspections were increased by competent authorities.

DECREE

The Decree published in the Federal Official Gazette on May 31, 2022, is the first legal document that contemplates the prohibition for trading Electronic Cigarettes inside Mexican territory, since previously only their import and export was prohibited (considering that the SCJN declared article 16, section VI of the General Law for Tobacco Control, unconstitutional).

The Decree in question also states that the applicable sanctions will be imposed to those who fail to comply and continue to trade Electronic Cigarettes within the country.

In this regard, it is important to mention that the SCJN’s reasoning in the Thesis Contradiction mentioned in the third point of the background, could also be used to file a defense against the restrictive measures established by the Decree.

While the Decree prohibits the trade inside the country of Electronic Cigarettes, the absolute ban of these products violates the rights established in the Federal Constitution, in addition to the fact thar it also violates the rights to free development of personality and the right to free trade.


Download Newsletter

Boletines relacionados

Extension of tax benefits for 2025
December 24, 2024 On December 24, 2024, a decree was published in the Federal Official Gazette extending the effectiveness of multiple tax benefits previously established for the fiscal year 2024, this extension would imply their application for 2025.
Labor reform for workers providing services to digital platforms
December 24, 2024 The Decree amending and supplementing various provisions of the Federal Labor Law regarding digital platforms was published in the Federal Official Gazette. This decree grants social rights to individuals providing services through digital platforms.
Arbitration as an alternative to the judicial reform
September 30, 2024 Following the publication of the decree reforming, adding, and repealing various provisions of the Political Constitution of the United Mexican States regarding the reform of the Judiciary, published in the Official Gazette of the Federation on September 15, 2024, uncertainty has arisen concerning the functioning of this body in resolving disputes. This has resulted in a lack of trust among individuals and legal entities in the judicial system, leading to the search for viable alternatives for dispute resolution, making arbitration an attractive option.
Extension of tax benefits for 2025
December 24, 2024 On December 24, 2024, a decree was published in the Federal Official Gazette extending the effectiveness of multiple tax benefits previously established for the fiscal year 2024, this extension would imply their application for 2025.
Labor reform for workers providing services to digital platforms
December 24, 2024 The Decree amending and supplementing various provisions of the Federal Labor Law regarding digital platforms was published in the Federal Official Gazette. This decree grants social rights to individuals providing services through digital platforms.
Arbitration as an alternative to the judicial reform
September 30, 2024 Following the publication of the decree reforming, adding, and repealing various provisions of the Political Constitution of the United Mexican States regarding the reform of the Judiciary, published in the Official Gazette of the Federation on September 15, 2024, uncertainty has arisen concerning the functioning of this body in resolving disputes. This has resulted in a lack of trust among individuals and legal entities in the judicial system, leading to the search for viable alternatives for dispute resolution, making arbitration an attractive option.
Reform that extinguishes the INAI
November 28, 2024. The Senate of the Republic approved on November 28, 2024 the reform of “organic simplification”, the content of this reform proposes the extinction of multiple autonomous agencies within which the National Institute of Transparency, Access to Information and Protection of Personal Data (INAI) is included. This reform was also approved by 17 state congresses, which is why it has already reached the qualified majority
Analysis of the Reforms to Mexico’s Federal Public Administration Organic Law: Implications and Perspectives.
November 28, 2024 A decree introducing reforms, additions, and repeals to the Federal Public Administration Organic Law was published in the Official Gazette of the Federation. This marks a significant transformation in the structure and functioning of the Mexican federal government. This analysis highlights the key aspects of these changes and their potential implications.
Revisting maquiladora operating models: Strategic alternatives.
Revisting maquiladora operating models: Strategic alternatives. Background. The maquiladora regime has been a central component of Mexico’s manufacturing growth since the 1990s, driving foreign direct investment, particularly in sectors such as automotive, electronics, and medical devices. This regime allows multinational corporations to establish manufacturing operations in Mexico under the IMMEX program, which grants fiscal and tariff exemptions when importing machinery, equipment, and raw materials to produce goods for export.