Upcoming changes in the regulatory framework

We draw the attention of our dear readers and listeners to certain points of the resolution, initiated by the Association "Ukrainian technical hemp" and explain why this is necessary for the national market of modern hemp breeding. 

On the pages of the specialized electronic edition of national cannabis growers in the material “Why does the market need“ Hemp University ”” , it was already mentioned about the event held by the Association “Ukrainian technical hemp” together with the Institute of Bast Crops of the National Academy of Sciences of Ukraine on March 26. It makes sense to return once again to this event that has already taken place on the market in order to analyze individual points of the resolution prepared as a result of the round table.

Round table resolution

Without disclosing the "general points" that are present in the above document, we focus the attention of our dear readers and listeners on individual points of the resolution initiated by the Ukrainian Technical Hemp Association and explain why this is necessary for the national market of modern hemp breeding.

p. 4 To support the amendments initiated by the Association "Ukrainian Technical Hemp" in the PKMU No. 589 of 06/03/2009 and No. 282 of 04/06/2016, ensuring the improvement of the regulatory framework and the elimination of contradictions and existing anachronisms in the current regulatory legal documents.

The changes initiated by the Ukrainian Technical Hemp Association concern the stems of technical hemp, which are a source of valuable natural raw materials used in many industries. In the course of processing hemp stalks, the company receives fiber, as well as fire, which are extremely liquid products and are in demand both in our country and abroad. The wide range of products made from hemp raw materials also determines the variety of processing technologies, in particular the stems, which today are not limited to the use of plants in stationary primary processing plants.

Due to the significant logistic costs of hemp growers for the delivery of raw materials to these enterprises, hemp growing farms in almost all regions of Ukraine are forced to hemp stalks, which, when processed, are able to give a greater profit than commercial grain, and destroy them on the field, while carrying additional costs. Modern directions of innovation more and more dictate the need to transfer a number of technological operations for the processing of hemp stalks directly in the field.

Given the fragmented location of farms growing industrial crops of industrial hemp in Ukraine and the cost of factories, enterprises began to use equipment for the primary processing of industrial hemp located on a mobile platform.

The equipment of the primary processing facilities located on a mobile platform is designed in such a way that, depending on the circumstances, it can work both in the field and in a temporary (stationary) room.

Considering the above, paragraph 41 of the Resolution of the Cabinet of Ministers of Ukraine dated 03.06.2009 No. 589, namely the existing norm according to which "Processing of hemp stalks is carried out by a business entity at a specially designated facility or indoors" significantly reduces the profitability of hemp production, since its action does not allow directly on the field of using equipment for primary processing of industrial hemp.

On the basis of clause 42 of the Resolution of the Cabinet of Ministers of Ukraine dated 03.06.2009 No. 589, business entities, primarily primary processing plants, must daily destroy "residues after processing hemp stalks", that is, destroy highly liquid products obtained during the primary processing of hemp raw materials.

Currently, in Ukraine, during the primary processing of hemp straw / trusts, a number of misunderstandings arise with law enforcement agencies regarding the daily destruction of products produced at production facilities.

In addition, it is necessary to improve the reporting system of cannabis producers to the State Service of Ukraine for Medicines and Drug Control, provided for in paragraphs 43 and 44 of this decree.

Clause 43 stipulates that business entities keep records of finished products (poppy seeds and hemp fiber) and their residues after cleaning and processing.

However, according to article 28 of the Single Convention on Narcotic Drugs, it is stated that the Convention does not apply to cannabis plants that are cultivated exclusively for industrial purposes (fiber and seeds).

Since in Ukraine, according to the current legislation, only technical hemp is grown, we propose to add paragraph 42 with the following paragraph: “The requirements of paragraphs 41-42 do not apply to activities related to cultivation, storage and processing of hemp plants when using seeds collected from plant varieties , in the dried straw of which the content of tetrahydrocannabinol does not exceed the content determined by the Cabinet of Ministers of Ukraine ", and from paragraph 43, exclude the words" hemp fibers ".

Regarding clause 44 of this decree, it obliges cannabis growers and processors to submit to the State Service of Ukraine for Medicines and Drug Control annually by October 1 a report on the results of activities indicating the number of grown and processed plants.

The aforementioned legal norm for the cannabis industry is inappropriate, since due to the technological characteristics of cannabis cultivation and weather conditions, its collection only begins in the third decade of September - early October. Every year, to get out of this situation, enterprises, as of October 1, submit messages to the State Medicines Service, the crop has not been harvested, and the information will be provided later.

In addition, the final report on harvesting by farms is submitted on December 1 to the State Statistics Committee.

Therefore, it is proposed to amend paragraph 44 of the Resolution of the Cabinet of Ministers of Ukraine dated 03.06.2009 No. 589, namely, the words "included in list 3 of Table I" to replace the words "kind of poppy, hypnotic", that is, to exclude reporting on hemp as of October 1 and postpone it on December 1.

(excerpts from the “Act of regulatory influence” prepared by the specialists of the Association “Ukrainian technical hemp” together with the employees of the relevant ministry, initiating amendments to the existing by-laws).

At the moment, the only opponent of making changes to PKMU 589 - 2009 is exclusively the Ministry of Internal Affairs, whose individual employees, if the above changes are adopted, lose their leverage on business entities that prepare hemp trusts for sale to primary processing plants, as well as to business entities specializing in the processing of hemp trusts. 

It is for the above reason that the Association "Ukrainian Technical Hemp" has initiated the collection of letters from business entities, which set out the facts of using the above-stated norms of the PKMU as a lever of pressure on national cannabis growers. This is necessary in order to disavow the attempts of the Ministry of Internal Affairs in any way to prevent the adoption of the above changes in PKMU 589 - 2009.

p. 5 Send representatives of business entities engaged in scientific and production activities with technical hemp (one each from a specialized scientific institution and hemp growers) to be included in the working group on the development of an agreed version of the draft law on regulating the circulation of hemp for medical purposes, scientific and technical activities and industry.

In the Verkhovna Rada of Ukraine, including on the initiative of the Ukrainian Technical Hemp Association, the State Drug Control Service submitted a bill 4533 of 04/27/2016, the explanatory note of which explained the absurdity and inappropriateness of quotas for crops of technical hemp. In this bill, it was proposed to remove quotas for crops of hemp, in the dried straw of which the amount of THC does not exceed 0.08%. I would like to note not only the archaic nature of this norm (we are the only country in the world that sets quotas for crops of a socially safe plant), but also the absurdity of what is happening by its nature. In the PCMU concerning quotas, data are annually entered that are not required by the International Narcotics Control Board and are not regulated by any international standards. Those. themselves invented an absurd "Chinese wall" and every year we "courageously overcome it" is absolutely not clear why.

In the above draft law submitted to the Verkhovna Rada of Ukraine in 2016, in addition to the need to remove the quota, it was indicated that it is expedient to cancel the “Permits of the Ministry of Internal Affairs”. This document, despite its name, is not a permissive document. This document is for informational purposes only. In addition, its existence directly contradicts the law “On licensing of types of economic activities”. It is by its nature absurd, since the text of the document indicates that the current by-laws do not control the cultivation or processing of the plant from the word at all. Those. two PKMU clearly indicate that there are no restrictions on cannabis crops in the dried straw of which the amount of THC below 0.08 does not exist. Accordingly, what the document of the Ministry of Internal Affairs should talk about, which is a paper of a notification nature. The permission of the Ministry of Internal Affairs actually states the obvious and does not bear any semantic and legal significance.

This issue is raised in order to focus the attention of those present on the fact that 4 bills have been submitted to the Verkhovna Rada of Ukraine, which are planned to amend the current laws regulating various aspects of the activity of modern cannabis breeding. A bit crazy, but changes in the legislation concerning the functioning of the industry are lobbied by our foreign competitors, doctors, marijuana people - anyone, but not representatives of the industry.

That is why an appeal was initiated to the relevant structures of the Verkhovna Rada of Ukraine, with the aim of attracting 2 representatives of the modern cannabis industry already operating on the territory of our country to work on the draft law.

Abstracts of the speech at the round table of the President of the Association "Ukrainian technical hemp"