What is the Second Stage of TPD Regulation?

In recent years, we have seen a whirlwind of development and proliferation of new brands of e-cigarettes and heated tobacco products (HTPs) that further add to the complexity of taxonomy, understanding, and effective regulation of tobacco products and their constituents.

The TPD and FCTC are tools that provide the EU Member States with a framework for actions and targets to protect human health and reduce tobacco consumption, monitor the evolution of tobacco products, and reduce the demand for tobacco products across the EU. Only TPD compliant vapes can be sold within the EU.

During the implementation of the TPD, the European Union Common Entry Gate (EU-CEG) has been implemented, and an information portal through which the tobacco industry is obliged to provide the complete chemical composition of each product it intends to sell in the EU member states and design information.

Another critical success of the TPD was the harmonization of labeling and packaging rules, the homogenization of packaging across the market, and the creation of a legal framework that allowed multiple EU member states to pursue simple packaging goals. Simple packaging of tobacco, also known as generic packaging, or neutral or standardized packaging.

The promotion of e-cigarettes as an excellent product for reducing health and environmental risks has attempted to differentiate themselves from traditional cigarettes, which unfortunately are still being compared to today.

The “Tobacco Product Directive” is a European legislative decree (2014/40 / EU) that regulates the market for tobacco products and those containing nicotine. Consequently, it intervenes on products such as e-cigarettes and e-liquids with nicotine, leaving the member states of Europe to decide whether and how to behave on those that do not contain it.

1. What is the second phase of the TPD regulation?

The TPD officially entered into force on May 20, 2019, and covers all companies participating in the vaping industry, including vape manufacturers, wholesalers, and importers. All operators participating in the supply chain are required to ensure compliance. The second phase of the TPD will take effect on May 20, 2024, and applies to smokeless cigars, cigarillos, and tobacco products. Before that, manufacturers and importers of these tobacco products will have to notify the name of their certified supplier to, the European Commission by December 31, 2022.

2. How can companies prepare for compliance?

Major global tobacco companies are typically advantageous as they have dedicated project teams. They can analyze solutions, vendors, and alternatives to determine the best way to manage a global solution for their serialization and aggregation needs, depending on the operational particularities of each country.

However, the tobacco sector includes many small and medium-sized enterprises (SMEs), including importers. The resources, funds, and capabilities are available to ensure compliance with the TPD are much more limited for these individuals. 

3. How will the serialization and aggregation processes develop in the future?

The changes that these regulations bring with them also include advantages linked to higher levels of quality and efficiency. For example, by defining each serialized product, recalls are easier. It is a question of having under control the distribution of products and the strategic positioning of stakeholders within a global network and, therefore, of connecting the different silos formed in the supply chain.