LONDON/NEW YORK/CHICAGO: In suburban Chicago, just 15 minutes from O'Hare International Airport, a small customs brokerage quietly became a major player in a booming underground market: helping unauthorized Chinese-made vapes reach American shelves.

According to a Reuters analysis, the firm, run by Jay Kim, handled 60 percent of all U.S. vape and vape-part shipments from China registered with the Food and Drug Administration (FDA) in 2024. Speaking from his office in April, Kim claimed, "A lot of them have FDA authorization." But FDA data tells a different story, revealing shipments included banned brands like Lost Mary and Geek Bar.

The FDA has classified these products as illegal to import or sell, warning that their fruity, candy-like flavors appeal to children. Health officials say nicotine can harm developing brains, impairing attention, learning, and mood in teens, who are particularly vulnerable to addiction. While a spokesperson for Lost Mary denied links to Kim's firm and argued that flavored vapes help adults quit smoking, the maker of Geek Bar declined to comment.

The illicit pipeline begins in Shenzhen, China—the world's vape capital. Chinese customs recorded over US$3.6 billion worth of vape exports to the U.S. in 2024, but U.S. customs data reflected just $333 million in imports. Experts say a 90 percent discrepancy is far beyond normal and signals that many shipments are misdeclared or misvalued.

According to the FDA, illegal vapes are often disguised as unrelated goods—like toys or shoes—to slip through customs. Reuters' investigation, drawing on data, regulator interviews, and insider accounts, traced a network of U.S.-based middlemen—customs brokers, importers, and distributors—who help funnel these products into the country, sometimes taking steps to avoid detection.

In February, authorities seized $34 million worth of unauthorized vapes in Chicago. The shipments used vague product descriptions and incorrect declared values. That same month, the FDA sent letters to 24 middlemen in the vape supply chain—importers and brokers—warning them that making false statements is a crime and asking how they ensure compliance with tobacco laws. Reuters could not confirm if Kim received such a letter. He did not respond to detailed questions about the shipments his firm handled.

Kim claimed he exited the vape business last year and said a former employee had introduced him to vape clients, then took those customers when she left. However, FDA records show vape shipments tied to his firm continued well into 2025.

Customs brokers don't sell or buy goods themselves—they manage import paperwork for clients. But failing to perform due diligence could put them in legal jeopardy, said Lenny Feldman, a partner at trade law firm Sandler, Travis & Rosenberg.

The network remains elusive. Six of the top ten U.S. recipients of vape shipments in 2024 were little-known companies formed in the past two years, some operating from residential homes with no public web presence or contact details. At one such house in north Chicago, a woman told Reuters the address had no link to the vape business.

New York Attorney General Letitia James filed lawsuits in February against 13 U.S. vape distributors, accusing them of working directly with Chinese manufacturers to flood the market with illegal flavored products. "All have engaged in reprehensible, illegal conduct and aim to addict youth to their products," the complaint said.

Former FDA official Mitch Zeller echoed that view. "There's only a handful of middlemen... responsible for getting [illegal vapes] into interstate commerce," he said.

Despite FDA approval for just 34 vaping products—none of them flavored—unauthorized devices now account for an estimated 70 percent of U.S. vape sales, worth over $8 billion last year.

U.S. officials say they're stepping up enforcement, including using AI to track suspect shipments. But for now, the supply chain that feeds the nation's youth nicotine habit continues to operate, primarily in plain sight.