On August 2, 2024, the Ministry of Public Security, the Ministry of Commerce, the National Health Commission, the Ministry of Emergency Management, the General Administration of Customs of the PRC, and the State Food and Drug Administration jointly issued an announcement ….. to incorporate seven substances including cannabidiol (CBD) in the precursor chemicals management system. The announced measure enters into effect on September 1, 2024.
Although CBD is included in the management announcement as part of the second category of precursor chemicals, industry analysts still see trade and commercial benefit from the measure.
For example, CBD now has a clear harmonized tariff system (HS) code 2907299090 and after paperwork and applications are filed in accordance with PRC regulations, CBD can be legally produced and marketed nationwide, instead of being produced only in Yunnan and Heilongjiang as it is now.
Five years ago I wrote how China was going to own hemp. Since then, the “U.S. Hemp Industry” has become mostly isomerized THC from foreign CBD, especially Chinese.
While U.S. farmers lose money and acres are down 95%, the local processors are making bank selling dirty THC vape pens to teens in southern state gas stations.