International Export of CBD
While the hemp industry is still in its nascent stage in India, it has grown by leaps and bounds in many parts of the world, particularly in western countries. As the demand for hemp-based products continues to grow as a response to increasing awareness, it continues to bring with it endless opportunities for entrepreneurs interested in the industry. While the small but mighty plant has given rise to various industries that range from hemp-based textiles to cosmeceuticals, CBD-based products continue to be at the forefront. This can be attributed to the increasing demand for CBD oil and other CBD-based products in the west. This also establishes the fact that exporting CBD to countries with high demand is more profitable. The limitations are fewer in comparison to the domestic market due to better awareness.
Despite this, CBD export is more complicated than it appears as there are several factors associated with it. These include the terms and conditions of shipping carriers, legality (in the place it is exported from as well as in the destination), and local laws. Apart from this, one needs to comply with the quality obligations and necessary certifications. Generally, some important parameters should be kept in mind while exporting CBD products. These include licensing, composition and formulation of the products and the assurance of quality.
- Composition and formulation – While the norm is that most countries allow CBD products to contain 0.3% THC or less, it may vary in some cases. For instance, many states in the USA have a zero-tolerance policy for THC. To export to these states, one needs to comply with the law of the land to ensure legality. In the case of non-compliance, the products can be seized and/or destroyed. Moreover, if the product contains any illegal substance, it could lead to strict action against the exporter. Therefore, you must familiarize yourself with the rules and regulations to avoid any unfavourable consequences.
- Licensing – When we speak of licensing in CBD export, it includes proper licensing at every stage. Most countries have strict policies on licensing. This means that the produce is sourced from a licensed farmer, is processed in a licensed lab, and is purchased from a legitimate retailer. Most countries have strict laws in place to ensure that only good quality products enter their markets.
- Quality Checking Measures – As mentioned, the presence of illegal or banned substances in the product may land you in serious trouble. To avoid this, you must put in place an effective quality-checking mechanism. This can be done with the help of a third-party lab test. Most licensed labs will be able to provide you with accurate results. You can also opt for a lab from the destination company as this is bound to add to the credibility of the results. These results should be documented as it certifies the purity of the product as per the legal standards.
- Branding – In the case of CBD products, the correct branding is just as important as anything else. Some retailers make the mistake of attaching false claims to their products. In this case, even if the product is genuine and likely to be effective, the presence of tall claims only ruins the credibility of the product. Most governments have strict policies against such blatant misbranding as it goes on to mislead consumers and puts them at risk. Therefore, make sure that the products you plan on exporting do not claim to be a panacea for medical conditions.
The mentioned parameters are of prime importance for any new player to enter international markets as an CBD exporter. These should not be compromised as they determine the fate of your future of CBD export as they go a long way in ensuring that you can carry out your business without any major hurdles in locations where CBD is legal.
Challenges Faced with Exporting CBD
There are several challenges that any new exporter is faced with. These may have slight or drastic variations depending on the targeted market. Of the many challenges, the lack of an elaborate regulatory framework regarding CBD products is perhaps the most pressing one. Hemp and its derivatives in any shape or form are still illegal in some countries and these should be steered clear of. The matter gets even more complicated when the rules and regulations regarding CBD vary within countries. This is why new exporters should educate themselves with an in-depth knowledge of the existing rules and regulations. In many cases, there are other factors related to the product that is in direct violation of the law. These may include the sourcing of raw material, potency, THC content, manufacturing practices, storage, or handling. It is, therefore, important to source the products from a GMP-certified manufacturer. Another major challenge faced by new exporters is the mode of shipping. Several exporters choose to outsource this task to shipping companies so that they can concentrate more on other aspects.
While the challenges faced by exporters of CBD are in no way small, they can be overcome by strategic decision making and ensuring legality and legitimacy at every step. It is best to get legal guidance from an expert to avoid unwanted trouble. As stated earlier, the rules and regulations concerning CBD not only vary from country to country but also within countries and territories. This necessitates impeccable attention to detail for avoiding inviting unfavourable consequences. Necessary permission and licenses should be obtained wherever required. One must be aware of the taxation policies and other financial details and strategize accordingly to ensure profitability. The CBD industry is experiencing speedy growth across the globe. This makes venturing into CBD a viable option for future entrepreneurs. It holds immense promise and is bound to be profitable as long as all necessary steps and precautions are taken.