The Natural Products Association (NPA) is raising concerns over proposals from the Drug Enforcement Agency (DEA) that could place U.S. hemp and CBD manufacturers at a disadvantage to foreign competitors, including China.  The proposed rule making under the “Agriculture Improvement Act of 2018,” limits the potency of cannabis extracts during the CBD manufacturing process.

NPA’s comments can be viewed here.

Specifically, the proposed rule states that “a cannabis derivative, extract, or product that exceeds the 0.3 percent D9-THC limit is a schedule I controlled substance, even if the plant from which it was derived contained 0.3 percent or less D9-THC on a dry weight basis.”

To extract CBD or other cannabinoids from federally compliant hemp, the hemp must first go through an extraction process, which often causes a temporary increase in the concentration of THC, the association noted.  Placing these restrictions on U.S. hemp and CBD manufacturers would increase the reliance on products manufactured in China, where they could be made more cost efficiently.

“These proposed rules would have a devastating impact on the domestic hemp and CBD industries,” said Daniel Fabricant, president and CEO of NPA.  “While other industries are looking to move away from a reliance on China, this proposed rule hurts American businesses. Rules like this one proposed further create an environment where our farmers, manufacturers, processors, and small businesses are at a competitive disadvantage to the Chinese.”

In addition to comments submitted to the DEA, NPA recently submitted comments to the Food and Drug Administration (FDA) regarding its policy of “intended use.”  NPA’s comments to the FDA can be viewed here.