Q COSTARICA — The technical regulations on vaping devices, recently published by the Ministry of Health, could push this market into the illegal sector, with potential impacts on formal commerce, tax revenue, and public safety, according to the Costa Rican Chamber of Commerce (CCCR).
According to the organization, the regulations introduce limitations that would significantly change the marketing of these products.
Among the provisions is a restriction that, starting August 6, only tobacco flavors will be permitted, along with advertising restrictions and a nicotine limit of 20 milligrams per milliliter.
While the Chamber agrees on the need for stricter regulations, especially to prevent access by minors, it warns that the new conditions could impact formal businesses, adult users, tax revenue, and public safety.
The Chamber’s president, Arturo Rosabal, stated that these types of measures could generate indirect effects in a context marked by challenges related to organized crime.
For its part, the CCCR’s Illicit Trade Observatory (OBCI) cites regional experiences as a reference.
In Mexico, investigations report that criminal organizations have taken control of the illegal vape trade following its prohibition, while in Panama, a legal restriction was later declared unconstitutional.
During that period, studies documented the consumption of smuggled products and an increase in use among minors.
Ricardo Carvajal, executive director of the observatory, indicated that prohibitions do not eliminate demand, but rather shift it to informal markets where products lack controls.
“Costa Rica already has clear precedents of how overly restrictive regulations can incentivize illicit trade. Today, contraband cigarettes represent nearly half of the national market, demonstrating the State’s limitations in containing these dynamics. If this regulatory path continues, everything indicates that Technical Regulation 519-2025 could lead us to scenarios similar to those observed in Mexico and Panama,” Carvajal said.
Given this situation, the OBCI and the Chamber requested a review of the regulations to maintain the protection of minors and market order, while also strengthening actions against illegal sales.
According to the trade association, the challenge is to balance health regulations and commercial legality to avoid unforeseen consequences.