From a modest office just minutes from Chicago’s O’Hare International Airport, a small customs firm has played a surprising role in helping bring millions of unauthorized Chinese-made vapes into the United States. According to a recent investigation by Reuters, this firm has become one of the most important links in the underground vape trade that fuels American demand for illegal e-cigarettes.

Jay Kim runs a customs brokerage that, in just over four years, has become a go-to handler for vape imports from China. In fact, his firm was involved in 60% of all vape-related shipments from China to the U.S. in 2024, based on data from the Food and Drug Administration (FDA) analyzed by Reuters.

"A lot of them have FDA authorization," Kim told Reuters during an April interview at his office.

But according to FDA import records, many of the shipments his firm processed contained unauthorized brands like Lost Mary and Geek Bar, brands the FDA has explicitly banned from being imported or sold in the U.S.

Why the FDA is concerned

The FDA says brands like Lost Mary and Geek Bar are dangerous because their fruit and candy-flavored vapes can attract young users. Health officials warn that nicotine harms brain development in teenagers and can affect their attention, learning ability, and mood.

A spokesperson for Lost Mary denied any connection with Kim’s firm and argued that flavored products help adult smokers quit. Geek Bar’s manufacturer did not respond to Reuters’ request for comment.

$3.6 billion worth of vapes, but only $333 million recorded

China’s Shenzhen is the global hub for vape production. Chinese customs data shows that the country exported $3.6 billion worth of vapes to the U.S. in 2024. But U.S. records only show $333 million worth officially received.

While such gaps between export and import data aren't unusual, two customs experts told Reuters that a 90% discrepancy is highly suspicious.

The FDA believes that many unauthorized vapes are hidden in shipments labeled as shoes, toys, or other unrelated products to avoid detection.

Reuters uncovered a network of U.S.-based middlemen, including importers and customs brokers, who help get these products through customs. Some of them reportedly take steps to stay under the radar.

In February, the FDA and U.S. Customs and Border Protection (CBP) seized $34 million worth of illegal vapes in Chicago. Many of these shipments had vague product descriptions and incorrect values on their paperwork.

For the first time, the FDA also sent letters to 24 importers and brokers, warning them that lying on shipping documents is a federal crime. The agency asked them to explain how they comply with tobacco laws. Reuters could not confirm whether Kim was among the recipients.

Kim told Reuters that his firm stopped handling vape shipments last year after a former employee who brought in vape clients left. However, FDA data reviewed by Reuters shows that shipments linked to Kim’s firm continued through June 2025.

Experts say customs brokers aren’t supposed to sell products, but they are responsible for handling paperwork and communicating with border officials. If they fail to check what’s inside the shipments they process, they could be breaking the law, said Lenny Feldman, a legal expert on customs procedures.

The FDA, along with CBP, has seized more than 7.1 million illegal e-cigarettes worth around $136 million over the past two years. In 2024 alone, CBP said it seized 3 million units of illegal vapes.

FDA Commissioner Marty Makary promised action:

“Our borders have been far too porous when it comes to challenges like illegal e-cigarette products coming from other countries.”

He added that the agency will use artificial intelligence to better detect and stop illegal vape shipments.

Residential homes, fake addresses, and no websites

The U.S. vape supply chain includes several small and unknown companies, some registered at residential addresses with no websites or public contacts.

For example, Somo Trade LLC, set up in 2023, became the second-largest recipient of vape shipments in 2024. But when a Reuters reporter visited its listed Chicago address, the homeowner said the house had nothing to do with the vape business.

Other companies like Rongda Trade and Lila Trade, both registered around the same time and operating out of homes, also received shipments. One has already shut down.

In May, the New York Attorney General sued 13 U.S. vape distributors, accusing them of helping Chinese firms flood the U.S. with flavored, disposable e-cigarettes.

“Together, Defendants have established an industry for flavored e-cigarettes, particularly disposable vapes, and staked out their own lucrative shares in the soaring market,” the lawsuit states.

Most vape sales are still unauthorized

Though the FDA has approved 34 vape products from major companies like British American Tobacco (BAT) and Altria, it has not approved any fruit or candy flavors.

Still, BAT executives estimate that 70% of vape sales in the U.S. are unauthorized, with the market worth over $8 billion in 2024.

“There’s only a handful of middlemen, middle companies, that are responsible for taking the illegal, imported stuff being misclassified and mislabeled and getting it into interstate commerce,” said Mitch Zeller, former head of the FDA’s tobacco division.

(With inputs from Reuters | Reporting by Emma Rumney in London, Kaylee Kang in New York, and Tom Polansek in Chicago; Editing by Michael Learmonth.)

 

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