When UK was part of the European Union, Cbd Companies were able to trade freely with their consumers and suppliers in mainland Europe. This made acquiring the ingredients and manufacturing CBD products relatively simple, as there were no cross-border tariffs, wait-times or other regulations. As the UK leaves the European Union, this free trade arrangement is being changed and now UK CBD producers must face many administrative challenges if they have supply chain partners or consumers in Europe. The problem is compounded by the fact that UK farmers are not allowed to produce crops for CBD – all CBD companies must source their CBD from farms outside the UK.

For example, UK based CBD Drink producer, ThreeDots, sells their products in the UK, but imports many ingredients from Austria. Brexit has changed the imort laws around CBD and ThreeDots is having difficulties importing the necessary goods to run their business. Customs has held incoming shippments for excessive amounts of time, and has even outright taken large quantities of incoming CBD goods for ‘testing’. This has caused ThreeDots and other companies like them significantly increased operating expenses and poses a threat to the survival of many UK CBD businesses.

One avenue for UK businesses is to look to the USA for new CBD suppliers. Currently CBD products containing less than 0.2% THC are legal in both the USA and the UK, importing from the US is relatively straight-forward and hassle free. Finally, UK CBD companies should heed the “rules of origin” which dictates that products must be predominantly made in the UK to receive easier import laws. Going forward, UK CBD companies should stay on their feet to manage changing import/export laws and try to position themselves for the easiest and most consistent operations.