Trade ministry memo says no legal basis to ban e-cigarette imports: Report

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Economy policy

India's trade ministry says it cannot impose a ban on electronic cigarette imports as there is no legal basis for doing so, an internal government memo viewed by Reuters shows, in a boost for those looking to tap into the country's growing vaping market

This comes amid repeated calls for a ban from the country's health ministry, which urged states and government agencies last year in an "advisory" to step up efforts to halt sales and imports, warning vaping devices pose a "great health risk".

The country has 106 million adult smokers, second only to China, making it a lucrative market for firms such U.S.-based Juul Labs and Philip Morris International that plan to launch e-smoking devices in the country.

India's Jubilant group, one of whose units has the franchisee for Domino's Pizza and Dunkin' Donuts outlets in the country, is already exploring importing Juul's vaping device, a company letter shows.
Halting imports of e-cigarettes into India will be against multilateral commitments with the World Trade Organization, according to the internal government memo dated March 18.
The country must first prohibit local sales through federal regulations that "can stand the scrutiny of law", the memo adds.

Once that is done, the Directorate General of Foreign Trade (DGFT) can announce an "import ban", the memo said.


 As of now, the health ministry's "advisory" cannot be a legal basis for a ban, the trade ministry, which has the power to impose import bans, said in the memo that is not yet public.The DGFT did not respond to a request for comment.