The customs value of e-cigarette devices, parts, and liquid imported into the United States in 2016 through 2018 was $2.4 billion, resulting in $120 million in tariff revenue. E-cigarette devices and parts each accounted for about $1.2 billion (48 percent for each, or 96 percent for both), and e-cigarette liquid accounted for $101.5 million (4 percent) of the total customs value over that period. From 2016 to 2018, the customs value of all US e-cigarette imports increased by 300 percent, with the highest increases associated with imported e-cigarette parts (594 percent) and one type of nicotine-containing e-cigarette liquid (582 percent). Although e-cigarettes were imported from 65 countries during this period, imports from China accounted for 97 percent of the customs value of all e-cigarette imports. US e-cigarette imports cleared customs at 36 ports of entry; the top five ports of entry — Los Angeles, Cleveland, Chicago, Savannah, and Norfolk — accounted for 81 percent of the total customs value of U.S. e-cigarette imports from 2016 through 2018.

Why GAO Did This Study

Over the last 15 years, use of electronic cigarettes, known as e-cigarettes, in the United States has grown rapidly as use of traditional cigarettes declined among both adolescents and adults. As GAO reported in 2017, most e-cigarettes sold in the United States are thought to be imported. The US government began collecting data specific to e-cigarette imports in January 2016, after the Committee for Statistical Annotation of Tariff Schedules established six new statistical reporting numbers for e-cigarette devices, parts, and liquid in the Harmonized Tariff Schedule of the United States (HTS). The six HTS statistical reporting numbers for US e-cigarette imports cover devices with and without nicotine; parts with and without nicotine; and two types of nicotine-containing e-cigarette liquid. U.S. Customs and Border Protection collects US import data from records submitted by importers, and the US Census Bureau incorporates these data into its official trade statistics.