B6: Importing and Exporting CBD Products

1. Understanding UK CBD Import/Export Regulations

CBD is regulated as a controlled substance in many countries, and different jurisdictions have varying rules for its import and export. Understanding the legal requirements of both the UK and your target country is essential for compliance.

1.1. Importing CBD into the UK

To legally import CBD or raw materials into the UK, the products must meet the country’s regulatory standards.

CBD Source and THC Limits: Any CBD imported into the UK must be derived from EU-approved industrial hemp strains (with less than 0.2% THC) or from other sources that comply with UK standards. The final product must contain no more than 1mg of THC per product.

Novel Foods Compliance: If you're importing CBD products for human consumption (such as oils, edibles, or capsules), the products must comply with Novel Foods regulations. Products need to be authorised or in the process of authorisation by the Food Standards Agency (FSA).

Customs Declarations: You must declare any imported CBD to UK Customs and provide necessary documentation to prove that the products comply with legal limits on THC and are not classified as controlled substances.

1.2. Exporting CBD from the UK

Exporting CBD products from the UK requires compliance with both UK laws and the laws of the destination country. Many countries have strict regulations on the import of CBD products, so it's critical to understand their specific requirements.

Destination Country Regulations: Each country has its own rules for the import of CBD. Some allow products with minimal THC, while others prohibit CBD entirely. Be sure to research the specific CBD laws in the destination country.

Export Licences: If you are exporting CBD in bulk or across multiple countries, you may need an export licence. The Home Office regulates controlled drugs, and if THC levels in your product exceed certain thresholds in the destination country, you may need special permissions.

Customs and Declarations: When exporting, you must provide accurate customs documentation, including the nature of the product, its cannabinoid content, and any relevant authorisations (e.g., Novel Foods authorisation for ingestibles).

2. Import/Export Documentation and Customs Compliance

Navigating customs procedures for CBD products can be challenging. Proper documentation is key to ensuring that your shipments are processed smoothly, avoiding delays, seizures, or legal issues.

2.1. Import Documentation

When importing CBD products into the UK, you’ll need to provide the following:

Certificate of Analysis (COA): You must include a third-party lab report showing the cannabinoid profile of the imported CBD product or raw material. The COA should clearly demonstrate that the product contains less than the legal THC limit (1mg per product).

Novel Foods Status: If the CBD is intended for ingestion, you will need to provide evidence that the product is either authorised under the Novel Foods regulations or in the authorisation process.

Import Declaration: You must declare the imported goods to UK Customs through the CHIEF (Customs Handling of Import and Export Freight) system. This declaration includes the nature of the goods, their value, and the country of origin.

2.2. Export Documentation

When exporting CBD from the UK, ensure you have the following documentation:

Export Declaration: Similar to importing, you will need to submit an export declaration to UK Customs. This process is handled through the National Export System (NES). The declaration includes details about the product, destination country, and value of the goods.

Commercial Invoice: A detailed invoice that includes information about the contents of the shipment, including the product name, quantity, and price. Ensure it specifies the CBD content and any relevant product authorisations (such as Novel Foods authorisation).

Certificates of Analysis (COA): Provide lab results showing the cannabinoid profile of your CBD products to prove compliance with both UK and the destination country’s regulations.

Certificate of Origin: Some countries require a certificate stating where the CBD was produced. This helps establish the product’s origin and compliance with local and international trade agreements.

3. Customs Codes and Harmonised System (HS) Codes for CBD

When importing or exporting CBD products, you must assign the correct Harmonised System (HS) codes to your products for customs purposes. HS codes classify products and are used internationally to standardise trade.

CBD Products HS Codes: The HS codes for CBD products can vary based on the type of product (e.g., raw hemp, CBD oil, CBD edibles). You will need to consult with a customs expert or use the UK government’s HS code database to determine the correct codes for your specific products.

Tariffs and Taxes: Import and export tariffs may apply depending on the country. Be sure to research any potential duties, tariffs, or VAT obligations that may be added to the cost of importing or exporting CBD.

4. Work with Logistics and Customs Brokers

Navigating the complexities of international trade, especially with CBD, can be tricky. Working with experienced logistics providers and customs brokers can help streamline the process and ensure compliance with all necessary regulations.

4.1. Partner with a Trusted Logistics Provider

Choose a logistics provider with experience in shipping CBD products internationally. They should understand the specific regulations, documentation, and challenges involved in shipping CBD, including how to handle customs declarations.

Many couriers have specific policies regarding CBD products, so it’s important to confirm that your provider allows the shipment of these products to your desired destinations.

4.2. Use a Customs Broker

A customs broker can help ensure that all import/export declarations are completed accurately and in compliance with UK and international regulations. They can also help ensure that your shipments clear customs smoothly.

Brokers can assist with obtaining the correct HS codes, paying tariffs and duties, and ensuring that all necessary documents, such as COAs and product declarations, are included with your shipments.

5. Navigating Import/Export Challenges

The international CBD trade is growing, but it also comes with certain risks. Below are some of the common challenges and how to mitigate them.

5.1. Legal Variations Between Countries

Each country has its own set of laws regarding the sale, import, and export of CBD. Some may ban it entirely, while others have strict limits on THC content or only allow certain forms of CBD (e.g., isolates but not full-spectrum).

Action Step: Always conduct thorough research on the destination country’s regulations. Consider consulting with local legal experts to ensure compliance.

5.2. Delays and Seizures

Customs delays or product seizures can occur if the paperwork is incorrect or if the destination country has conflicting regulations about CBD imports.

Action Step: Ensure all necessary documentation is accurate and complete before shipping. Use a customs broker to help minimise the risk of shipment delays or seizures.

5.3. Supply Chain Integrity

Managing your supply chain is crucial for ensuring the quality and compliance of imported raw materials or exported products.

Action Step: Build strong relationships with suppliers and distributors. Ensure that the product is tested for quality and compliance at every stage of the supply chain to avoid non-compliance issues.

6. Explore New Markets and Trade Agreements

Expanding internationally can be a lucrative opportunity for your CBD business. Keep an eye on countries with emerging CBD markets and changing regulations that may offer new opportunities.

6.1. Monitor Trade Agreements

The UK has trade agreements with various countries, which may impact tariffs, taxes, and the ease of doing business. Stay informed about any updates to post-Brexit trade agreements that may affect the export of CBD to EU countries or other regions.

6.2. Identify Growing Markets

As more countries move towards the legalisation of CBD, new markets are opening up. Countries such as Germany, Canada, Australia, and parts of South America are emerging as potential export destinations for CBD products.