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One recent study cited in the article found that [e-cigarette] aerosol constituents could injure the respiratory system or worsen preexisting lung disease through a variety of mechanisms. It also points to research associating wheezing, a symptom of potential respiratory disease, with e-cigarette use

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And his "terrible" owner (the inimitable James Earl Jones)

Instead, they release aerosols that contain toxic chemicals, some of which have been linked to cancer, heart disease and respiratory disease

Literally, it refers to products that are exempt from payment of duty, but it can be understood more generally as products that can be purchased without sales, import or other taxes