How middlemen illegally funnel Chinese vapes to the United States

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.

Kim, in an April interview at his office, said that "a lot of them" had FDA approval. He was referring to the vapes shipments his company handled.

FDA data on the importation of FDA-regulated products such as tobacco or medicines into the U.S. showed that the products Kim's company helped bring into America included unauthorized brands like Lost Mary, Geek Bar.

The FDA declared these brands illegal to import and sell, warning that their fruity and candy flavors could appeal to children. The FDA says nicotine is addictive and can affect young people's mood, attention, learning, and ability to learn.

A Lost Mary spokesperson stated that the company had no contact or connection with Kim's firm and flavors are a major factor in helping adults quit smoking. Geek Bar's maker did not reply to a comment request.

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.

The study used data from the FDA and U.S. Customs, as well as interviews with tobacco and vape industry insiders. It also collected information from U.S. law enforcement and regulators to create a picture about how unlicensed vapes end up on U.S. store shelves.

The report found that a group of US-based middlemen, including customs brokers and distributors, played a key role in the vape chain and took steps to avoid detection.

Trump Administration officials promised a crackdown. FDA Commissioner Marty Makary said that the agency would stop illegal imports.

An FDA spokesperson stated that "our borders were far too porous" when it came to illegal ecigarette products from other countries. The agency plans to use artificial intelligence in order to "stem flow of products appealing to children across the country."

In May, Customs and Border Protection and the FDA announced that $34 million worth of illegal vapes were seized in Chicago. The seizure in February was a result of a large number of shipments that contained incorrect product values and vague descriptions.

In the course of this operation, the agency for the first sent letters to all 24 middlemen in the supply chain for vapes, including U.S. customs brokers and importers.

According to the FDA, the letters informed the middlemen that it is a crime to give false information to the government and asked them how they ensured compliance with tobacco laws.

It was not possible to determine if Kim was one of the customs brokers that received a FDA letter. He refused to answer any questions regarding the findings.

VAPE MIDDLEMEN

Customs brokers don't buy or sell their own goods. They are instead paid by someone else, usually an importer, who pays them to assist with the customs process.

Feldman said that customs brokers could be in violation of the law if it is found they have not done proper due diligence.

Kim, in a brief conversation with a reporter at his office on April 9, said that his company no longer deals with vape shipments after leaving the business last year.

He claimed that an ex-employee of his company had brought him in contact with vape customers and then took them with her when she moved on.

The FDA data examined by revealed that Kim continued to handle vape-related shipments throughout 2025 including in June. The FDA, who was told to fire 3,500 workers in March, collaborates with CBP to stop unauthorized vape shipments.

CBP spokesperson said the agency had seized more than 3 million illegal vapes worth $76 million by 2024. The spokesperson stated that CBP had encountered bad actors who were exploiting shipments in order to transit illicit goods. This included illegal vapes and synthetic opioids as well as precursor chemicals, paraphernalia, and other related items.

Over the last two years, the FDA reported that efforts by FDA and CBP led to the seizure around 7.1 millions e-cigarettes valued at over $136,000,000.

Robert F. Kennedy Jr., Secretary of Health and Human Services, said that the administration will "eradicate" fruity and sugary flavored vapes imported from China which appeal to children. In May, he said to the Senate Committee on Health, Education, Labor and Pensions that "we are going get rid of them all".

Illinois Congressman Raja Krishnamoorthi says that middlemen such as Kim are partly responsible for the vape flood, but places the majority of blame on the FDA. He accuses the FDA of being inactive while illegal vapes flood the country.

"The FDA is a catastrophe." He said, "It's asleep on the switch." You have illegal vapes everywhere.

This month, it was reported that the Trump Administration's tariffs against China and vape seizures have already impacted supply. FDA data shows that vape shipments fell in May. Popular brand Geek Bar was particularly affected.

The FDA has approved 34 different vape products from companies such as British American Tobacco, Altria and others. However, the FDA has not authorized any fruity or sweet-flavored vapes which it says may appeal to children.

BAT executives estimate that unauthorized vape devices accounted for 70% of sales in the U.S.

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.

Analysis of FDA data as well as state business filings shows that the second largest recipient of vape shipments was a Chicago based company named Somo Trade LLC. It was established in 2023.

A woman who lives at the address of the business, which is a home in Chicago's North Side, told a reporter the building was not used for the vape business.

Rongda Trade is another recipient of vapes. It was registered in the same house as Somo Trade. Both were opened the same month and have already closed, according to its filings. When I visited the address, no one answered the front door.

A residential address in Chicago's Southwest Side, linked to Lila Trade, was also unanswered. Xiaohong Dai's name was not listed on the four mailboxes outside.

There were no websites or contact details for any of these firms.

In February, New York Attorney-General Letitia James filed a lawsuit against 13 companies that she claimed were major U.S. distributors of vapes. She accused them of working with Chinese manufacturers in order to fuel an unauthorized vape market.

The complaint claims that "Defendants, together, have created an industry of flavored ecigarettes, especially disposable vapes and staked their own lucrative share in this booming market," All have engaged in reprehensible and illegal conduct, with the aim of enticing youths to use their products.

Mitch Zeller - former director of the FDA Center for Tobacco Products under the Obama, Trump, and Biden administrations - blamed U.S. distributors for feeding the demand, including those named in James’ lawsuit.

He said that only a few middlemen and middle companies are responsible for bringing the mislabeled, misclassified, and illegal imported goods into interstate commerce.

(source: Reuters)