Navigating Import and Export Regulations in the Cannabis Industry

Despite its explosive expansion, the cannabis business in the UK is held back by a complicated web of laws, especially regarding the import and export of cannabis-related goods. 

For businesses looking to capitalise in the international trade of cannabis or further increasing their reach in the UK, understanding these legalities and logistics is essential.

Understanding Controlled Drugs and Licences

Prescription pharmaceuticals classified as controlled substances are those covered by laws against drug abuse. For cannabis businesses, it’s crucial to determine if your products fall under this category.

If so, in order to import or export these drugs lawfully, you will need to apply for the necessary licences.

Steps to Apply for Licences

1. Obtain an NDS Account:

First, ensure you have a valid domestic licence.
Apply for an NDS (National Drugs Control System) account, which typically takes five working days to process.

2. Submit Trading Partner and Product Details:

Provide details about your overseas trading partners and the specific cannabis products you'll be handling.

3. Electronic Application Submission:

All import and export licence applications must be submitted electronically. Valid applications are usually processed within ten working days.

4. Single-use Licences:

Each licence is valid for a specific shipment only. Import licences last three months, while export licences are valid for two months or until the importing country's permit expires.

Special Considerations for Export

The European Union has strict controls on exporting certain drug substances, especially those that could be used in executions. These include various barbiturates such as amobarbital and pentobarbital. Exporters must secure appropriate permissions from national export control authorities before proceeding.

Annual Statistical Returns and Fees

Businesses involved in the wholesale, manufacture, or supply of controlled drugs must submit annual returns detailing their activities. Failing to comply with these requirements can lead to account suspensions. Each import/export licence costs £24, and even unused or incorrectly applied-for licences must be paid for.

Importing Medicinal Cannabis

While the UK is the largest exporter of medicinal cannabis, importing it involves several regulatory hurdles. Here’s what you need to know:

1. Home Office License:

Required for each shipment, with a typical processing time of several weeks.

2. MHRA Notifications:

Importers must notify the Medicines and Healthcare products Regulatory Agency (MHRA) at least 28 days before importation, providing comprehensive details about the product and its manufacturer.

3. Record-Keeping

Maintain records for at least five years and ensure they are available for inspection by the MHRA.

Recent Regulatory Changes

In March 2020, the UK government eased some import restrictions to facilitate quicker access to medicinal cannabis. This change allows licensed wholesalers to import larger quantities of cannabis-based medicinal products (CBMPs) in advance of prescriptions, reducing delays for patients.

Exporting Cannabis-Based Medicinal Products

GW Pharmaceuticals is a prominent player in the global export of CBMPs. To export, businesses must obtain individual licences for each shipment, similar to the import process. Exporters need to provide a copy of the import permit from the destination country.

Medical Use

Cannabis products for medicinal use must comply with stringent regulations. They can be supplied without a Home Office licence under certain conditions, but the supply chain up to the healthcare practitioner must be licensed.

Recreational Use

Recreational use of cannabis remains illegal in the UK without a specific Home Office licence.

Industrial Use

Hemp can be cultivated under an Industrial Hemp licence, but only approved seed types with low THC content are allowed. The leaves and flowers of the hemp plant, considered controlled parts, must be destroyed.