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Argentina’s Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME) has approved a regulation that establishes provisions for dealing with violations of the nation’s regulatory framework for hemp and medical marijuana.
The provisions, in a recently passed Sanctioning Procedure Regulation, are effective immediately. They address non-compliance with licensing conditions and reporting obligations, emphasizing transparency and accountability. ARICCAME said the aims are to bolster compliance to ensure the industry operates within a clear legal framework, uphold industry integrity and protect stakeholders.
Under key provisions of the regulation:
Violations of the regulatory framework will result in administrative sanctions. Penalties include fines, license suspensions, and, in severe cases, license revocation.
Due process is guaranteed. Summaries of alleged violations may be initiated ex officio or based on reports from administrative or judicial bodies, as well as individual complaints.
Failure to fulfill licensing obligations, including fee payments and accurate reporting, may lead to sanctions. ARICCAME retains the authority to suspend or revoke licenses depending on the severity of the infraction. Sanctions are determined after thorough administrative review, considering the severity of violations and the offender’s conduct.
Framework for accountability
The regulation builds on previous measures, including one passed last year which established licensing procedures for non-psychoactive industrial hemp activities such as seed, grain, and fiber production.
ARICCAME has a mandate to regulate, control, and issue administrative authorizations for cannabis and hemp-related activities. By introducing the Sanctioning Procedure Regulation, the agency aims to establish a precedent for compliance and promote sustainable growth within Argentina’s hemp and medicinal cannabis sectors, according to the agency.
According to the resolution, the new regulation reflects Argentina’s dedication to fostering an internationally competitive hemp and medicinal cannabis industry, ensuring alignment with global best practices while safeguarding the public interest.
Unfolding slowly
Argentina passed a law legalizing hemp in 2022 – allowing hemp to move into the farming mainstream in one of the world’s leading agricultural nations, where the crop can serve as a replacement for a shrinking tobacco sector, and lead to innovation in technology and product development, the government has said.
By setting the THC level for Argentinian hemp at a full 1.0%, the government is following in the footsteps of leading hemp nations around the world and going beyond the widely accepted global benchmark of 0.3% THC as the dividing line between hemp and marijuana.
But the rules exclude the processing of CBD itself, which is restricted under a 2020 decree that made CBD- and THC-based products legal to import but only for medical patients, with sales limited to pharmacies under doctor prescriptions.
ARICCAME history
The government formed ARRICAME in 2023 as a central clearinghouse for the administration of the cannabis industry, assigning it a broad mandate to promote research and technological progress, ensure consumer safety and cooperate with state agencies and universities.
Argentina’s Ministry of Science has said it intends to invest more than $106 million in 13 research and development projects in hemp and cannabis across six provinces. Also in 2023 the government created Cannabis Conicet, a technology company aimed at advancing the industrial hemp and medical cannabis sectors.
The government is advancing a whole-plant strategy for hemp that aims to exploit the crop for its health and environmental benefits in addition to its potential for economic development. Permitted uses include human and veterinary medicines, nutritional, cosmetic, and industrial, as well as future applications that may emerge from ongoing research and technological development.
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