How middlemen funnel illegal Chinese vapes into the United States
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One small company, located just 15 minutes from Chicago's O'Hare International Airport (O'Hare), helped import millions in vapes made by Chinese manufacturers last year, and was a vital link in the supply chains that feed U.S. demand.
In just over four years, a customs broker named Jay Kim became the go-to agent for the Chinese vape market. According to an analysis, the firm handled 60% of the vapes and parts shipped from China to the U.S. by 2024.
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Shenzhen, a Chinese city, is the largest source of legal and illicit vapes entering the United States. According to Chinese customs figures, China exported over 26 billion yuan (3.6 billion dollars) worth of vapes into the U.S. in 2024. U.S. Customs figures, however, show that only $333 millions in Chinese vapes was officially received by the U.S. in 2024.
Two customs data experts said that while mismatches between custom data in the U.S., and those of its trading partners, are common, a gap of 90% was not. According to the FDA which is leading efforts to control vapes, unauthorized vapes are often disguised as shoes or toys when they arrive in the U.S.
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Most of the supply chain that smuggles illegal Chinese vapes to the U.S. operates in plain view.
The process begins with a Chinese exporter network. Once a vape shipment has cleared customs in the U.S. it is sent to its U.S. buyer, usually a distributor. The distributor then sells to smaller wholesalers or retailers across the country.
The FDA collects information on the recipients of vape shipments in the United States. Reynolds American, a U.S.-based subsidiary of BAT, was the largest company in 2024.
The top ten vape recipients in the United States also included six obscure companies, which were opened between 2023 and 2024. They sometimes operated out of homes.
