Cannabis and the Intersection of Law and Business
As the legal cannabis industry continues to expand at a rapid pace, navigating the intricate web of trade rules has become increasingly important for businesses to understand. In their insightful discussion, cannabis law experts Vincent Sliwoski and Adams Lee delve into the nuanced regulations surrounding one of the industry’s most perplexing areas – international trade compliance.
Federal vs. State Cannabis Laws in the US
To kick off the episode, Sliwoski provides a comprehensive overview of how federal and state cannabis laws differ in the United States. While many states have legalized medical or recreational use through regulated programs, marijuana remains classified as a Schedule I drug under the Controlled Substances Act at the federal level.
This creates conflict that permeates many aspects of the industry, especially when it comes to transporting cannabis across state lines or international borders. Businesses must understand that state legalization does not override federal prohibition.
Hemp vs. Marijuana: Key Distinctions for Trade
The experts explain how federal law distinguishes between hemp and marijuana based on THC content. Hemp containing less than 0.3% THC can generally be imported and exported, as it was removed from the CSA in 2018. However, moving intoxicating marijuana across borders remains strictly prohibited.
Transporting cannabis even between states where it’s legal also violates federal law. Companies must keep products within closed supply chains and not deviate from import/export declarations. Non-compliance can lead to seizure, penalties and other legal risks.
Compliance Considerations for Associated Businesses
For entities interacting with the cannabis industry, Sliwoski and Lee provide guidance on assessing risk levels and conducting proper due diligence. While state-compliant operators present relatively low risk, all companies must understand complex legal concepts like aiding and abetting.
The experts also touch on how third party carriers like FedEx have policies against shipping controlled substances. Proper documentation is essential to assuage any compliance concerns when working with cannabis clients.
Special Guests: Vincent Sliwoski and Adams Lee
Hosts: Lalo Solorzano and Andy Shiles
