The U.S. Department of Agriculture (USDA) is advising stakeholders about a policy change in China that will impose tighter regulations on hemp-derived CBD, though it says the new rules are expected to benefit the industry.
Last week, USDA published a translation of an advisory from the the People’s Republic of China (PRC) that says cannabidiol, as well as six other non-cannabis compounds, will be classified as a precursor chemicals starting September 1.
That designation generally means there will be enhanced regulations affecting licensing, reporting requirements and exports. It’s not clear what prompted the change, but it’s possible that CBD’s classification as a precursor chemical is responsive to the increased manufacturing of intoxicating cannabinoids such as delta-8 THC that are synthesized from CBD.
China currently allows for the cultivation of industrial hemp and international marketing of CBD, but it’s domestically prohibited for use or sale. While the new classification will add certain regulatory restrictions, USDA said “industry analysts still see trade and commercial benefit from the measure.”
That’s because being designated as a precursor chemical means “CBD now has a clear harmonized tariff system” that could simplify international exports for companies that meet the necessary standards.
Also, as it currently stands,
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