Texas Senate Bill 2024 (SB 2024), effective September 1, 2025, has significantly changed the rules for vape retailers. Key provisions include banning vape products that are partially or wholly manufactured in China (or other “foreign adversary” countries designated by U.S. Department of Commerce), prohibiting nicotine liquids containing cannabinoids, kratom, or alcohol, and forbidding packaging or marketing that appeals to minors (cartoons, bright colors, celebrity endorsements, etc.).
These changes have left many smoke shops scrambling: inventory that was legal yesterday is illegal now, and many distributors report that over 40% of their revenue has been impacted by the origin clause alone.
So what are the compliant alternatives? How can Texas vape shops adapt—and even turn this disruption into opportunity? Below are strategies and manufacturing options, including a strong case for sourcing from Indonesia via reputable manufacturers like Smart Vape Factory.
Understanding the Key Compliance Requirements of SB 2024
To source compliant alternatives, shops need to keep in mind the following criteria:
| Requirement | Implication for sourcing / what to check |
|---|---|
| Origin: No Chinese‐made or Chinese-components (or other “foreign adversaries”) | Products must be manufactured in non-banned countries; all parts, hardware, liquids, etc., must not originate from China or be processed through banned regions. |
| Ingredients: No cannabinoids (THC, CBD, etc.), kratom, or alcohol additives | Look for manufacturers who provide full transparency and lab testing of ingredients. |
| Packaging / Marketing: No designs appealing to minors — no cartoons, no fruity / novelty names, no celebrity endorsements | Branding must be adult-oriented, neutral/serious packaging, clear labeling for compliance. |
| Legal documentation: Certificates of origin, customs certifications, safety / quality (e.g. production standards) | Distributors should request documentation showing origin, manufacturing standard compliance, and proof that no banned materials or imports are used. |
Global Alternatives: Where to Source Legally Compliant Vape Products
Here are several paths Texas shops can take to maintain stock legally:
1. U.S.-based / Domestic Manufacturing
- Pros: Simplifies origin verification, easier logistics, likely better regulatory oversight.
- Cons: Higher production costs, possibly limited variety or slower turnaround times.
2. Manufacturers in Countries with Favorable Trade Terms & Clear Documentation
- Countries like Indonesia are increasingly attractive: lower tariffs, good manufacturing infrastructure, improving regulatory oversight.
- For example, import data and trade analysts show that many Chinese manufacturers are moving operations or component sourcing to Southeast Asian countries to avoid both high U.S. tariffs and regulatory bans.
3. Re-fillable Pod Systems & Hardware from Compliant Sources
- Portable devices or pods that can be filled with liquids produced in compliant jurisdictions.
- Care must be taken that the hardware itself (e.g., coils, outer casings, batteries) does not include components from disallowed regions.
4. OEM / ODM Partnerships
- Private labeling – working directly with factories that offer customization, but also provide all the compliance documentation
- Helps control branding so that packaging / design meets SB 2024 requirements.
Why Indonesia Makes Sense as a Compliant Alternative
- Lower Tariffs and Favorable Trade Status: Indonesia-assembled / exported vape products often face much lower import tariffs compared to products from China.
- Strong Manufacturing Base: Indonesia has many factories capable of producing e-cigarettes, refillable pods, and similar hardware with quality control.
- Certificate of Origin & Local Value-Addition: To qualify for tariff preferences (and to satisfy origin requirements under laws like SB 2024), manufacturers need to show local part/materials cost, local labor, local packaging, etc. Indonesia manufacturers are doing this.
- Regulatory Cooperation: Some recent reports indicate that Indonesian export regulations and trade diplomacy are moving in ways that make exports to the U.S. more streamlined.
Smart Vape Factory: A Reliable Indonesia-Based Solution
For dealers and retailers in Texas seeking compliant alternatives, Smart Vape Factory offers a strong proposition:
- 100% Indonesia origin: All hardware, liquids, and production are based in Indonesia, with no Chinese manufacturing or component sourcing.
- Quality certifications: Smart Vape Factory maintains production quality, safety, and consistency (you can highlight ISO or other certifications your factory holds).
- Customizable OEM / ODM capability: Your shop can source branded products that satisfy the new design / packaging guidelines required under SB 2024 (no youth-appealing graphics, etc.).
- Transparent documentation: Certificates of origin, lab reports for ingredients, shipping and customs paperwork to demonstrate compliance.
- Competitive pricing: As Indonesian production tends to have favorable labor and export cost structures, products can often be priced more favorably than fully domestic ones or those still sourcing from China under risk.
Steps Texas Shops Should Take to Transition Smoothly
- Audit current inventory immediately—flag any product with Chinese origin (components or assembly) or with packaging/features that risk violating SB 2024.
- Engage suppliers to provide documentation: origin, composition, packaging mockups.
- Switch to compliant product lines before the enforcement date to avoid fines, seizure of products, or loss of business.
- Work with manufacturers that can customize packaging / flavors to fit the law.
- Communicate with customers about the change—educate them, avoid up-selling or misrepresenting products. Transparency helps maintain trust.
- Set up compliance checks internally — inspect documentation for each shipment, keep records in case of inspection or audit.
Conclusion
While SB 2024 represents a crisis for many vape shops in Texas, it also opens the door for strategic, compliant sourcing that can actually boost business in the longer term. Shops that act early, choose manufacturers outside banned regions, and insist on full compliance documentation will be best positioned.
If you’re looking for a reliable, compliant, Indonesia-based partner with full transparency, premium quality, and the ability to deliver on demand—including custom branding and packaging—Smart Vape Factory is well placed to help your shop make the transition smoothly and legally.