The PACT Act was signed with the second stimulus package at the end of 2020. It banned the shipment of nicotine, vaporizing batteries for nicotine, and vapor products of any other kind. This included CBD, hemp, and cannabis vapes, which don’t contain nicotine in them. But the vaporizing effect is what qualifies it’s ban under the PACT Act.
Since December 2020, small businesses and companies have been struggling to find private shipping companies who will ship their product. Unfortunately, Fedex announced that as of March 1, 2021, they also would not be shipping any vape products or flavors. This threw another blow at companies. Many increased their shipping prices or no longer offered an online store at all. This severely hurts businesses and communities dependent on the sales for jobs. It also hurt any potential help hemp and CBD can offer to consumers.
However, on Monday April 19, the USPS announced that there may be some upcoming changes. This would include the continued shipment of hemp and CBD products.
Potential Changes
The USPS is still working on finishing up their final rules. But, they are encouraging qualifying companies to begin filing for potential exception ruling. This will help make sure companies are prepared if the USPS changes the rulings. If the rules do change, they take effect immediately and USPS doesn’t want companies left behind on this endeavor. USPS is not currently accepting these exception applications. In the mean time, companies can start preparing documentation for the application for when it comes available.
Important documents include:
- The Postal Office where each sender would ship product from as well as pick up if there are returns
- A description of the business like hemp company, CBD producer, etc.
- For each permit or license: the license number, any expiration date, and the activity covered by the license
- The brand name and description of each product shipped.
- Whether any products contain lithium batteries, CBD, or tetrahydrocannabinol (“THC”).
- For CBD products with 0.3 percent THC, whether or not the CBD comes from hemp.
Federal Register
USPS released a statement on this potential upcoming change on the Federal Register:
“For hemp-based products containing CBD with a THC concentration not exceeding 0.3 percent, mailers must retain, and prepare to make available upon request, records establishing compliance with all applicable federal, state, and local laws pertaining to hemp production, processing, distribution, and sales, including the Agricultural Act of 2014 and the Agricultural Improvement Act of 2018 (Farm Bill). Such records may include laboratory test results, licenses, and compliance reports.
“All other substances that contain THC are Schedule I controlled substances for purposes of federal law…and are therefore nonmailable in most instances. This federal mailing prohibition is unaffected by whether the mailing of THC-containing substances violates state or local law and by the restriction of Department of Justice appropriations relating to medical marijuana.
Additionally, it “is unlawful to mail advertisements for, or to advertise the mailing of, federally controlled substances or drug paraphernalia” though this policy has been in place for several years.
Future
This opens a huge opportunity for CBD and hemp companies concerned on how to ship their product to their customers. USPS has not announced an official verdict day for these final rules. Many expect to hear a verdict on the changes by late April 2021.
As more information develops around the USPS, we will update you with the latest. Make sure to check back for more cannabis and hemp related news.