H.R. 10929: Protecting American Hemp Farmers Act

This bill would add new trade and testing rules for imported hemp-related products, especially those coming from China.

Tariff on hemp products from China

The bill would require the President to impose an additional 50% duty, or tariff, on certain hemp-derived cannabinoid products from China when they are imported into the United States. This would apply to products such as cannabinoid isolates, distillates, naturally derived cannabinoids, synthetic cannabinoids, and chemically altered cannabinoids that are classified under specific customs categories.

The new tariff would begin applying to covered imports entered into the U.S. customs system 90 days after the bill becomes law.

New tariff categories for cannabinoids

The bill would direct the government to create separate tariff classifications for several kinds of cannabinoid products. These categories would include:

• cannabinoid isolates;
• cannabinoid distillates;
• naturally derived cannabinoids;
• synthetic cannabinoids; and
• chemically altered cannabinoids.

The bill also defines these terms for customs purposes. For example, it describes an isolate as a highly purified crystalline powder, a distillate as a concentrated oil refined through distillation, and a chemically altered cannabinoid as a plant extract that has been changed into a different compound, including forms such as delta-8 THC, delta-9 THC, and delta-10 THC.

Rules to prevent tariff evasion

The bill would require Customs and Border Protection to gather extra information or certifications from importers to help ensure products subject to the new tariff are not routed through other countries to avoid the duty. This includes preventing evasion through transshipment, repackaging, blending, or minimal processing in third countries.

Mandatory testing for imported cannabinoid products

For imported cannabinoid products that are intended for human consumption, the bill would require mandatory testing for a set of safety-related concerns. The testing would look for:

• heavy metals, including lead, cadmium, mercury, arsenic, molds, and mycotoxins;
• pesticide residues;
• microbial contamination;
• residual solvents; and
• synthetic byproducts and unknown compounds.

Customs and Border Protection, working with the Food and Drug Administration, would be responsible for putting these testing requirements into place.

Public reporting

The bill would require Customs and Border Protection and the U.S. International Trade Commission to publish annual public reports with aggregate data on these imports. The reports would include information by country of origin, cannabinoid type, quantity, and customs value, as well as summary information about testing results and how often import lots were refused because of testing.

Relevant Companies

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