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United States • Title 21 CFR • Part 1318

Part 1318PART 1318—CONTROLS TO SATISFY THE REQUIREMENTS OF THE ACT APPLICABLE TO THE MANUFACTURING OF MARIHUANA

This part outlines the procedures for registering manufacturers of marihuana, including cultivation, and the specific control measures required for bulk manufacturing. It details the Drug Enforcement Administration's (DEA) role in purchasing and possessing crops, exclusive rights for import/export and trading, and the application of public interest factors for registration.

What this part covers

  • Governs the registration of manufacturers seeking to plant, grow, cultivate, or harvest marihuana.
  • Defines key terms such as cannabis, medicinal cannabis, cannabis preparation, cannabis resin, Single Convention, bona fide supply agreement, and registered researcher or manufacturer.
  • Requires registration to be consistent with the public interest and U.S. obligations under the Single Convention.
  • Mandates that registered manufacturers deliver total cannabis crops to the Administration, which will purchase and take possession.
  • Grants the Administration exclusive rights for importing, exporting, wholesale trading, and maintaining stocks of cannabis, with exceptions for medicinal cannabis and preparations.
  • Requires manufacturers to provide 15 days' written notice before harvesting.
  • Allows distribution of small quantities of cannabis to registered analytical labs for testing prior to Administration purchase, provided the cannabis is destroyed afterward.
  • Outlines public interest factors for registration, including effective controls against diversion, compliance with laws, technical advances, prior conviction records, and past experience.
  • Specifies that the Administration will set prices for cannabis purchases and sales, including an administrative fee to recover program costs.
  • States the Administration has no liability for contractual terms agreed upon between growers and buyers of bulk cannabis.

Sections in Part 1318

§ 1318.01

Scope of this part.

Procedures governing the registration of manufacturers seeking to plant, grow, cultivate, or harvest marihuana are set forth by this part.

§ 1318.02

Definitions.

cannabis(a) Except as provided in paragraph (e) of this section, the term means any plant of the genus Cannabis. medicinal cannabis(b) Except as provided in paragraph (e) of this section, the term means a drug product made from the cannabis plant, or derivatives thereof, that can be legally marketed under the Federal Food, Drug, and Cosmetic Act. cannabis preparation(c) Except as provided in paragraph (e) of this section, the term means cannabis that was delivered to the Administration and subsequently converted by a registered manufacturer into a mixture (solid or liquid) containing cannabis, cannabis resin, or extracts of cannabis. cannabis resin(d) Except as provided in paragraph (e) of this section, the term means the separated resin, whether crude or purified, obtained from the cannabis plant. cannabis, medicinal cannabis,cannabis preparation(e) As used in this part, the terms and do not include any material, compound, mixture, or preparation that falls outside the definition of marihuana in section 102(16) of the Controlled Substances Act (the Act) (21 U.S.C. 802(16)). Single Convention(f) The term means the Single Convention on Narcotic Drugs, 1961 (18 U.S.T. 1407).…

§ 1318.03

Implementation of statutory requirements.

(a) As provided in section 303(a) of the Act (21 U.S.C. 823(a)), the Administrator may grant an application for a registration to manufacture marihuana, including the cultivation of cannabis, only if he determines that such registration is consistent with the public interest and with United States obligations under the Single Convention. (b) In accordance with section 303(a) of the Act and § 1301.44(a) of this chapter, the burden shall be on the applicant to demonstrate that the requirements for such registration have been satisfied.

§ 1318.04

Specific control measures applicable to the bulk manufacture of marihuana.

For a registration to manufacture marihuana that involves the cultivation of cannabis, the following provisions must be satisfied: (a) All registered manufacturers who cultivate cannabis shall deliver their total crops of cannabis to the Administration, except as provided in paragraph (d). The Administration shall purchase and take physical possession of such crops as soon as possible, but not later than four months after the end of the harvest. The Administration may accept delivery and maintain possession of such crops at the registered location of the registered manufacturer authorized to cultivate cannabis consistent with the maintenance of effective controls against diversion. In such cases, the Administration shall designate a secure storage mechanism at the registered location in which the Administration may maintain possession of the cannabis, and the Administration will control access to the stored cannabis. If the Administration determines that no suitable location exists at the registered location of the registered manufacturer authorized to cultivate cannabis, then the Administration shall designate a location for the authorized grower to deliver the crop as soon as…

§ 1318.05

Application of the public interest factors.

(a) In accordance with section 303(a) of the Act (21 U.S.C. 823(a)), the Administrator shall consider the public interest factors set forth in paragraphs (a)(1) through (6) of this section: (1) Maintenance of effective controls against diversion of particular controlled substances and any controlled substance in schedule I or II compounded therefrom into other than legitimate medical, scientific, research, or industrial channels, by limiting the importation and bulk manufacture of such controlled substances to a number of establishments which can produce an adequate and uninterrupted supply of these substances under adequately competitive conditions for legitimate medical, scientific, research, and industrial purposes; (2) Compliance with applicable State and local law; (3) Promotion of technical advances in the art of manufacturing these substances and the development of new substances; (4) Prior conviction record of applicant under Federal and State laws relating to the manufacture, distribution, or dispensing of such substances; (5) Past experience in the manufacture of controlled substances, and the existence in the establishment of effective control against diversion;…

§ 1318.06

Factors affecting prices for the purchase and sale by the Administration of cannabis.

(a) In accordance with section 111(b)(3) of Public Law 102-395 (21 U.S.C. 886a(1)(C)), seeking to recover the full costs of operating the aspects of the diversion control program that are related to issuing registrations that comply with the Controlled Substances Act, the Administration shall assess an administrative fee. To set the administrative fee, the Administration shall annually determine the preceding fiscal year's cost of operating the program to cultivate cannabis and shall divide the prior fiscal year's cost by the number of kgs of cannabis authorized to be manufactured in the current year's quota to arrive at the administrative fee per kg. The administrative fee per kg shall be added to the sale price of cannabis purchased from the Administration. The administrative fee shall be paid to the Diversion Control Fee Account. (b) As set forth in § 1318.04, the Administration shall have the exclusive right of, among other things, wholesale trading in cannabis that it purchases from registered manufacturers. The Administration will, therefore, buy from such manufacturer, sell cannabis to registered researchers and manufacturers, and establish prices for such purchase and…

§ 1318.07

Non-liability of Drug Enforcement Administration.

The Administration shall have no liability with respect to the performance of any contractual terms agreed to by a grower and buyer of bulk cannabis, including but not limited to the quality of any cannabis delivered to a buyer. In the event that a buyer deems the delivered cannabis to be defective, the buyer's sole remedy for damages shall be against the grower and not the Administration.

Regulatory Context

This document sits within United States CFR and is most useful when linked to operational submission, quality, and inspection workflows.

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