Two SupremaciesGFN23 Report: How To Legally Sell E-Cigarettes In Mexico? Chinese Companies Have Already Qualified
Introduction to the "Amparo" litigation system
Juan began by explaining to the two supremacies how Mexico's "Amparo" works, a unique Mexican trial process in which citizens can file a case with a federal judge to decide whether a law or government action violates human rights.
For example, in the case of a ban on the sale of e-cigarettes, the Mexican government can enforce the ban in the form of fines, store closures, or presidential decrees.
However, citizens or businesses can file complaints arguing that the authorities have violated human rights, thereby exempting or preventing the authorities from taking action against business entities.
Mexican tobacco and retail companies have made significant progress through a special litigation regime called Amparo, including British American Tobacco (BAT)'s VUSE and PMI's IQOS, both of which have successfully overturned the government's ban on e-cigarette sales.
The e-cigarette company won the case with "Amparo".
Mexico's ban on the import, export, and sale of e-cigarettes was not debated and voted on by Congress to become law, but was signed directly by the president into law.
This has also become a key argument for tobacco and retail companies in lawsuits with the government.
Juan further explained that there are several human rights violations that companies can make when fighting for "Amparo":
Unfair/uneven application of the law. Tobacco is a product that is regulated and legally sold in Mexico, and e-cigarettes are a "tobacco-like product", so banning the sale of e-cigarettes is unfair and violates the principle of fairness.
Freedom of choice. E-cigarettes are a "tobacco-like product" and it is another option for tobacco products, just as different flavors or different sizes of cigarettes are different options. Stopping the sale of e-cigarettes is an infringement of consumers' freedom of choice and the free development of individuality.
Freedom of commerce. Similarly, e-cigarettes are a "tobacco-like product" that violates the commercial freedom of businesses and consumers by blocking their business activities without democratic procedures.
Who wins in "Amparo"?
Juan explained that it is easier for tobacco companies to prove these points and win because they already sell tobacco products. Small companies may not have enough evidence and documentation to prove that they have a legitimate interest in selling e-cigarettes, which are "similar to tobacco products."
One possible way for small companies to get around this problem is to create a new company that specializes in selling e-cigarettes.
As far as Juan knows, VUSE, owned by British American Tobacco (BAT), and IQOS of Philip Morris International (PMI) legally sell e-cigarettes in Mexico through the "Amparo" program.
Grocery stores and retailers such as Oxxo, Seven-11 and Sanborn's have also won lawsuits individually. In addition, the case in which Juan himself was involved also involved a Chinese e-cigarette company.
Juan also highlighted Mexico's current ban on e-cigarettes, which only allows the company to legally sell e-cigarettes, despite being legally sold through "Amparo".
Although the case set a precedent for other cases, the whole
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