Illegal Chinese Vapes Flooding U.S. Market Through Middlemen Scandal
Illegal Chinese vapes are flooding the U.S. market through a vast web of middlemen and customs brokers, despite bans and seizures by federal agencies. According to a detailed Reuters investigation, these illegal Chinese vapes are being funneled into the country by disguising shipments and using loosely regulated firms operating in plain sight.
In 2024 alone, a small brokerage firm near Chicago, run by Jay Kim, processed over 60% of all shipments of illegal Chinese vapes from China to the United States. Although Kim claimed many had FDA authorization, the data reviewed showed brands like Lost Mary and Geek Bar—specifically banned by the FDA—among the imports.
The illegal Chinese vapes typically arrive mislabeled as items like shoes or toys to evade detection. Despite warnings and increasing seizures by the FDA and Customs and Border Protection (CBP), the import network has only grown more sophisticated.
$3.6 Billion Exported, But Only $333 Million Officially Received
In 2024, China exported illegal Chinese vapes worth more than 26 billion yuan ($3.6 billion) to the U.S., according to Chinese customs data. However, only $333 million worth was officially registered in U.S. customs data—a nearly 90% discrepancy. Experts say such a large mismatch suggests widescale misclassification and smuggling.
The FDA and CBP reported that these illegal Chinese vapes are often smuggled with vague descriptions and incorrect values. In May, authorities seized $34 million worth of such vapes in Chicago alone. The crackdown included letters sent to 24 U.S.-based importers and customs brokers, warning that false documentation could be a criminal offense.
Customs Brokers and Distributors Under Fire
Customs brokers like Kim do not sell illegal Chinese vapes themselves but act as facilitators by handling paperwork and communication with border authorities. If found negligent or complicit, they could face legal action. Kim claims he stopped handling vape shipments in 2024, though FDA data indicates his firm processed them well into 2025.
One of the top recipients of illegal Chinese vapes in 2024 was a company called Somo Trade LLC, registered at a residential home in Chicago. Another firm, Rongda Trade, located on the same street, has already been dissolved. None of these companies have public contact info or websites, further raising suspicion.
Legal Vapes vs. Illicit Flood
The FDA has approved only 34 vape products, all from firms like British American Tobacco and Altria, with none allowed to have fruity or candy flavors. However, unauthorized vapes—mostly illegal Chinese vapes—make up nearly 70% of the market, amounting to $8.14 billion in 2024 alone.
Marine seizures and enforcement have already dented supply, with FDA-recorded vape shipments collapsing in May. Yet, the demand for flavored, disposable illegal Chinese vapes continues unabated, especially among youth, due to their candy-like appeal.
Youth Addiction and Legal Action
Nicotine in illegal Chinese vapes poses severe health risks to adolescents, impacting brain development and increasing addiction rates. U.S. regulators are concerned these products target children and teens. In February, New York Attorney General Letitia James sued 13 vape distributors for working with Chinese manufacturers to sell flavored illegal Chinese vapes.
The lawsuit accuses these distributors of building a lucrative, youth-targeted market. Mitch Zeller, former FDA tobacco chief, said a small group of middlemen are responsible for getting illegal Chinese vapes into circulation through mislabeling and smuggling.
Crackdown Promised by Authorities
FDA Commissioner Marty Makary pledged to stop the flow of illegal Chinese vapes, blaming “porous borders” and middlemen exploitation. Secretary of Health Robert F. Kennedy Jr. declared that fruity vapes from China would be “wiped out” under a national crackdown.
Despite these promises, the FDA’s staffing cuts—3,500 fired in March—pose a challenge. The agency now plans to use artificial intelligence to detect and block illegal Chinese vapes more effectively.
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