PACT Act Compliance

PACT Act Compliance Policy

Masterpiece Wholesale is committed to complying with the Prevent All Cigarette Trafficking (PACT) Act, which regulates the sale, shipment, and taxation of tobacco products, including vape products. This policy outlines the requirements for all customers to ensure compliance with federal and state laws.

1. What is the PACT Act?

The Prevent All Cigarette Trafficking (PACT) Act is a federal law that:

  • Regulates the shipment of tobacco and vape products.
  • Requires businesses to verify the age and licensing of buyers.
  • Mandates reporting of sales and shipments to relevant authorities.
  • Imposes tax collection and remittance obligations.

Masterpiece Wholesale strictly adheres to the requirements of the PACT Act to ensure legal compliance.

2. Customer Requirements

To purchase regulated products (e.g., vape, tobacco, or nicotine-related items) from Masterpiece Wholesale, all customers must provide the following:

a. Business Verification

  • A valid business license or reseller certificate.
  • A state tobacco tax permit, if required in your state.

b. Age Verification

  • Proof that the business owner or authorized representative is at least 21 years old.
  • A copy of a government-issued photo ID for age verification.

c. Signed Compliance Statement

  • A signed statement acknowledging the following:
    • Your business will comply with all federal, state, and local laws regarding the sale, distribution, and taxation of regulated products.
    • Your business will not sell or distribute products to individuals under the age of 21.

3. Shipping and Delivery Requirements

Masterpiece Wholesale complies with all shipping requirements under the PACT Act, including:

  • Age Verification Upon Delivery: All shipments require an adult signature (21+) upon delivery.
  • Proper Shipping Labels: Packages containing regulated products will be labeled with the required PACT Act statement:
    “CIGARETTES/SMOKELESS TOBACCO: FEDERAL LAW REQUIRES THE PAYMENT OF ALL APPLICABLE EXCISE TAXES, AND COMPLIANCE WITH APPLICABLE LICENSING AND TAX-STAMPING OBLIGATIONS.”

Shipping Restrictions

We do not ship regulated products to:

  • States, counties, or municipalities where such products are prohibited.
  • Directly to consumers in jurisdictions where consumer shipments are restricted or banned.

4. Recordkeeping and Reporting

To comply with the PACT Act, Masterpiece Wholesale maintains detailed records of all sales and shipments. Customers agree to the following:

  • Record Retention: You must maintain records of all purchases for at least 5 years.
  • Monthly Reporting: Masterpiece Wholesale submits reports to state tax administrators, as required, detailing:
    • Products sold.
    • Quantities and values.
    • Shipping addresses and customer details.

5. Tax Obligations

  • State and Local Taxes: Customers are responsible for paying all applicable state and local excise taxes. Masterpiece Wholesale may collect taxes on your behalf where required by law.
  • Tax Compliance: Customers must ensure compliance with all tax laws in their jurisdiction.

6. Non-Compliance

Failure to comply with the requirements outlined in this policy may result in:

  • Suspension or termination of your account.
  • Cancellation of pending orders.
  • Reporting of violations to the appropriate regulatory authorities.

7. Contact Us

If you have any questions about our PACT Act Compliance Policy or need assistance submitting documentation, please contact us.

Masterpiece Wholesale is dedicated to ensuring compliance with the PACT Act and other applicable regulations. By purchasing from us, you agree to adhere to this policy and all relevant laws.