The demand for e-cigarette batteries has been strong recently, and shortages have reappeared. However, the shortage of vape batteries this time is very different from before. It was caused by rapid market growth. This time it is related to US policy.
According to a decision of the United States District Court, the deadline for submitting PMTA to the US Food and Drug Administration is advanced to May 12, 2020.
After submitting the application, the applicant can continue to sell the product for one year or until the product is approved or rejected. Products that do not meet these requirements may be enforced to be off-list.
The United States is the largest export market for China e-cigarette companies. After a federal court order is issued, if the company wants to stay in the US market, the way out is to apply for PMTA as soon as possible.
With the approaching of the deadline, e-cigarette manufacturers usher in a large demand for e-cigarette batteries at the beginning of 2020.
Several e-cigarette manufacturers said that e-cigarette batteries are currently in short supply; they’re searching for vape batteries everywhere. Previously, there were stocks for not-so-large battery orders, and now they have to be booked in advance.
Many related orders for the production of e-cigarette battery factories are saturated; in order to meet the urgent needs of customers, full-force efforts are being made to expand production capacity.
For e-cigarette manufacturers exporting to the United States, increasing orders is a good thing, but these needs must also be treated with caution. Factories need to keep an eye on the safety of the payment.
Regarding the outbreak in the United States, as of March 23, the cumulative number of confirmed cases in the United States has reached 35,211, with 471 deaths. The rapid changes in the epidemic situation will undoubtedly increase the instability of e-cigarette exports and the export risks will rise sharply.
Beginning in mid-March, European and American customers in other industries have successively canceled orders. With the spread of the U.S. epidemic, some customers may choose to abandon, reject, or temporarily delay shipments in order to avoid losses. This has indeed had a significant impact on factories and export companies.
For enterprises exporting to the United States and Europe, in order to prevent possible risks from emergencies, it is recommended that export companies sort out the inventory risks affected by the epidemic situation, pay close attention to the transportation of goods that have already been shipped, and consult with freight forwarders and shipping companies in time. Communicate and deduct work in response to possible customs injunctions.
For goods that have not yet been shipped, communicate effectively with customers in a timely manner, reasonably arrange the time of shipment, and pay close attention to the situation of epidemic prevention and control to try to avoid or reduce the uncertainty caused by the COVID 19.