A Democratic member of the US House of Representatives has introduced a bill that would place a 50 per cent tariff on hemp-derived cannabinoid products imported from China and require new testing of cannabinoid products entering the United States, as first reported by Marijuana Moment.

The Protecting American Hemp Farmers Act was filed on Thursday by Rep. Val Hoyle of Oregon. According to the report, it would add a duty of 50 per cent of the customs value to any article originating from China that is a hemp-derived cannabinoid product or another specified cannabinoid.

What the bill would do

The bill would direct the US International Trade Commission to create new categories in the Harmonized Tariff Schedule for cannabinoid isolates, cannabinoid distillates, naturally derived cannabinoids, synthetic cannabinoids and chemically altered cannabinoids.

It defines hemp-derived cannabinoid products broadly, covering any product containing cannabinoids derived or synthesised from Cannabis sativa L., or any extract, isolate or derivative of it, whether or not the product meets the federal definition of hemp.

US Customs and Border Protection would be told to require extra information or certifications from importers, to make sure products do not avoid the tariff through transshipment, repackaging, blending or minimal processing in third countries.

Customs would also have to work with the Food and Drug Administration on mandatory testing of cannabinoid products imported for human consumption. The tests would cover heavy metals such as lead, cadmium, mercury and arsenic, as well as moulds and mycotoxins, and synthetic by-products and unknown compounds.

Customs and the Trade Commission would have to publish annual reports tracking imports by country of origin, cannabinoid classification, quantity and customs value. These would also include information on testing and how many imports were refused as a result.

Wider hemp changes in the US

The bill comes as the US hemp industry faces major changes. Hemp derivatives with less than 0.3 per cent delta-9 THC on a dry-weight basis were legalised federally under the 2018 Farm Bill. Legislation signed by President Donald Trump late last year redefined hemp so that only products with 0.4 milligrams of total THC per container would stay legal after 12 November.

Under provisions in a funding bill Trump signed last month, the effective date of the ban for most products has been moved to 11 December, to give lawmakers more time to draft rules for hemp derivatives. Synthetic cannabinoids that cannot be naturally produced by a cannabis plant will still be banned from 12 November.

Marijuana Moment also reported that a Republican congressman has raised the possibility that provisions to reverse the planned ban on hemp THC products could be added to a broader budget reconciliation bill during the lame-duck session of Congress, which follows next week’s midterm elections.

Why it matters in the UK

US rules on hemp and cannabinoid trade are closely watched by the global CBD industry. In the UK, CBD products can be sold subject to the Food Standards Agency’s novel food rules and strict limits on controlled cannabinoids such as THC. The bill is a proposal and has not become law.