1. Nicotine containing electronic cigarette liquids are prohibited from commercial sale within the country. According to Japan's PMD Act, nicotine containing electronic cigarette liquids are classified as drugs rather than consumer goods and cannot be sold in stores or online platforms. Nicotine electronic cigarettes cannot be legally purchased in Japan. 2. Nicotine free electronic cigarette liquid and heated tobacco products (HNB) are completely legal and can be purchased at electronic cigarette specialty stores, convenience stores, and online platforms.. The Japanese government plans to increase the tax rate on heated tobacco products (HNB) to the same level as traditional cigarettes in the 2026 fiscal year. In early 2025, the Japanese government announced that it would completely eliminate the tax gap between HNB and traditional cigarettes by 2026, and planned to further increase the tax rates for both types of products after the 2027 fiscal year. Increasing tobacco taxes as a source of funding to enhance national defense capabilities. This policy reversal has sparked strong protests from Philip Morris Japan. 4. Individuals are allowed to bring nicotine e-liquid into the country for personal use. Passengers are usually allowed to bring a small amount of nicotine e-liquid into the country (usually around 120mL in total). Exceeding the customs limit may result in confiscation. The lithium-ion battery recycling system will be implemented in April 2026. The revised version of the "Promotion of Effective Resource Utilization Act" requires companies that use lithium battery containing devices such as electronic cigarettes to fulfill their recycling obligations. Heating tobacco products account for about 40% of Japan's total domestic tobacco demand 1. Tax policy reversal: shifting from providing long-term tax benefits to HNB to eliminating tax differentials by 2026, aimed at protecting traditional cigarette sales and the interests of domestic tobacco farmers. The Liberal Democratic Party Tobacco Parliamentary Alliance calls for a complete equalization of the tax burden on HNB and cigarettes, and if it is necessary to further increase the tobacco tax rate, hopes to implement it in stages and in small amounts. 2. The tax treatment for heated tobacco products will be completely balanced with traditional cigarettes in the 2026 fiscal year. After the fiscal year 2027, the tax rates for both types of products will be further increased simultaneously. 3. Japan's unique regulatory "dual track system": electronic cigarettes (including nicotine) are regulated by PMD law; Nicotine free electronic cigarettes and heated tobacco products are regulated as consumer goods or tobacco products. 4. Expansion of lithium battery recycling obligations: Starting from April 2026, companies that sell over 300000 units of heated electronic cigarette equipment annually must recycle lithium batteries from discarded equipment. 5. Foreign products are subject to stricter import contract review (PACT Act will take effect from October 2024 and continue until 2026).