Bongs and pipes made overseas are now legal in the US thanks to the State-Legal Marijuana Programs Rules Federal Court

The US Court of International Trade (CIT) recently issued an important ruling that could set the course for the international import of cannabis accessories into cannabis-law states. The federal court’s decision clearly exempts states with cannabis laws from the federal prohibition imposed by the Controlled Substances Act (CSA).

Cannabis companies can now import or export drug paraphernalia from or to states or countries that have similar cannabis laws. Cannabis paraphernalia includes any product, material or device that can be used for the manufacture, processing, ingestion, inhalation, preparation, transformation or introduction of cannabis products into the human body.

This latest development comes after the court settled a case between cannabis paraphernalia company Eteros Technologies USA and the US government. In 2021, U.S. Customs and Border Protection (CBP) stopped Eteros from importing cannabis trimming equipment from Canada to Washington. Shortly thereafter, Eteros Technologies filed a lawsuit arguing that the equipment for import was designed to trim government-grown hemp.

A win for US cannabis companies

Eteros Technologies’ victory is more or less a win for all cannabis companies in states with cannabis decriminalization laws. According to the lawsuit, in April plaintiff Eteros had plans to import Mobius M108S trimmer equipment through the Port of Baine in Washington. When the equipment was brought in for inspection by Customs and Border Protection (“CBP”), the CBP provided Eteros with a detention notice. In a prompt response to the notice, Eteros explained that while the machine was designed to be used with hemp, it could also be used with marijuana. It also featured two defenses.

First, the tools should be used on hemp, not marijuana; hence they didn’t even qualify as drug paraphernalia; second, since marijuana is legal under Washington state law, it should be exempt from the import ban even if it meets the criteria for drug paraphernalia. Shortly thereafter, the CBP issued a notification reiterating that the device would remain banned under federal law. In response, eteros filed the lawsuit.

The US CIT has determined that a state or municipality may authorize an individual or company to manufacture, possess, import, or distribute cannabis paraphernalia as long as they are licensed. The court found an exception to the broader CSA prohibition, a finding that could have significant implications for marijuana businesses that have had to negotiate the conflict between state and federal cannabis policies.

The Justice Department tried to claim that Congress intended to apply the restriction consistently, but the court dismissed that claim, saying that the statutory exception showed that the legislature clearly intended inconsistent applications. A simple reading of the legislation shows that it also protects the paraphernalia itself. The court ruled, rejecting the government’s claim that the exception was primarily intended to protect certain individuals from prosecution.

The court’s final decision is based on “21 USC § 863(f)(1) such that § 863(a)(3)’s. c”. As a result, CBP will henceforth have no reason to block or deny entry of cannabis devices into cannabis-legal states in the United States. The court further stated that its role is to define and implement the law enacted by Congress and that it has no jurisdiction to weigh political arguments regarding the merits of legislation or to make proposals to amend legislation.

In summary, the court has implied that if the government desires a different statute or reform, it can appeal to Congress with that rationale.

What to expect

The National Cannabis Business Association (NCIA), headed by Aaron Smith, expressed their “commendation and appreciation” to Eteros for “producing this crucial issue and for bringing about this triumph for the marijuana industry.”

The legal cannabis market, which provides hundreds of thousands of jobs in the United States, is supported by legitimate companies around the world, he claimed. It is hoped that this ruling will save these law-abiding companies from facing unfair obstacles when importing legal goods into or out of the country.

In addition to this closed case with Eteros, another cannabis company has alleged that CBP acted unlawfully in seizing an import of its extraction products, which were also considered drug paraphernalia. This measure, unlike that of Eteros, was dismissed by the same court. The background to this was that the company’s lawsuit focused on specific issues of the official confiscation notice and not on the general import permit, which was controversial on a technical level. The court stated that the dispute must be resolved by another federal court.

However, another type of cross-border cannabis trade is also a growing topic in the United States, with some states taking steps to prepare for interstate trade across the country once the federal ban is lifted.

Federal authorities are likely to appeal the case, but stakeholders welcome the ruling. According to a press release from Richard O’Neill, the attorney representing Eteros, the court’s decision is “a tremendous triumph for the cannabis sector”.

Latest updates on cannabis legalization in different states

California Gov. Gavin Newsom (D) signed legislation last month allowing such trading if the federal government adopts a policy change or if regulations are passed to protect commercial activity.

Nicholas Scutari of the New Jersey Senate introduced legislation in August that would give the governor the power to negotiate cannabis import and export deals with other states that have legalized the drug.

Maine’s law prohibiting non-residents from operating medical marijuana businesses there was found unconstitutional by a federal appeals court in August. Legal experts also claim that the ruling could potentially have wider implications for the interstate cannabis industry and complicate social justice initiatives.

bottom line

As a first-of-its-kind verdict, this could be a really positive development (and hopefully a trend) for the cannabis sector, especially at a time when it’s struggling with domestic price increases. But it’s important to remember that the American government will likely fight this, so there’s no reason to celebrate this as brand new legislation just yet. Cannabis.net is carefully monitoring future changes that should continue to benefit the cannabis business and global import and export.

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