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Title: | Diversion Control Division | Marihuana Growers Information |
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Marihuana Growers Information
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Registration
Marihuana Growers Information
Summary
On December 18, 2020, the DEA finalized this rule which amends 21 Code of
Federal Regulations 1318 to facilitate the cultivation of marihuana for
research purpose and other licit purposes to ensure compliance with the
Controlled Substances Act (CSA) and treaty obligations. The regulations
govern applications by persons seeking to become registered with DEA to
grow marihuana as bulk manufacturers, and regulations related to the
purchase and sale of this marihuana by DEA.
Marihuana Memorandum of Agreements Sample (PDF)
Proposed Rule: Rescheduling of Marijuana (PDF) (May 21, 2024)
Final Rule: Controls To Enhance the Cultivation of Marihuana for Research
in the United States (PDF) (December 18, 2020)
Proposed Rule: Controls To Enhance the Cultivation of Marihuana for
Research in the United States (PDF) (March 23, 2020)
Registration
Administrative Fee
General Transaction Process
List of the DEA approved Bulk Manufacturer Marihuana Growers
Hemp/USDA
Contact Us
Registration
Cultivation or purchase of marihuana for research or other licit purposes
requires a DEA registration. You may apply for a DEA registration as a
manufacturer (grower) or a researcher by submitting the application form
for the desired activity. The application forms and corresponding
instructions can be found at Registration (usdoj.gov).
Administrative Fee
The administrative fee has been calculated in accordance with 21 CFR
1318.06(a) for the calendar year 2024. The administrative fee for calendar
year 2024 is $118 per kg. This fee was calculated by dividing the estimated
cost of operating the program to cultivate cannabis in fiscal year 2024 of
$784,594 by the by current (calendar year 2023) year's aggregate
production quota of 6,675 kgs. The administrative fee per kg shall be added
to the sale price of cannabis purchased from the Administration.
In accordance with 21 CFR 1318.06(b), the administrative fee will be added
to the sale price negotiated between the bulk grower and the purchaser; the
administrative fee shall not be recoverable in the event that delivery is
rejected by the buyer; and in instances where the grower of the cannabis is
the same entity as the buyer, the entity may establish a nominal price, and
DEA will then purchase and sell the cannabis back to the entity at the same
price with the addition of the administrative fee.
General Transaction Process
There are three stages in the general transaction process:
Bona Fide Supply Agreement and Quota
Advance Notification and Invoicing
Harvest and Transfer of Ownership
A. Bona Fide Supply Agreement and Quota
As stated in the sample memorandum of agreement (MOA), on or before May 1
of the year preceding the year in which marihuana is to be grown, the
grower1 will furnish an individual manufacturing quota (IMQ) application
utilizing DEA Form 189. (Numbers correspond with the diagram below.)
Grower enters into bona fide supply agreement(s) with buyer(s).2
Grower will include in their IMQ application copies of documents
that constitute the bona fide supply agreement(s) (BFSA) that justifies
their quota application request. For purposes of calculating Grower's
IMQ, DEA will only consider BFSA from existing DEA registrants.
Upon receipt of quota, the grower may grow marihuana within the
terms and conditions of the quota and memorandum of agreement.3
Bona Fide Supply Agreement and Quota Process
1 For the purposes of describing the general transaction process, "grower"
means a DEA-registered bulk manufacturer of marihuana with BFSA(s) to
supply to researchers of any (or all) of the following schedule I
controlled substances: marihuana (7360); marihuana extract (7350); and
tetrahydrocannabinols (THC) (7370).
2 A BFSA must include the name, address, and DEA registration number of the
buyer, along with the negotiated purchase price that the buyer will pay
along with the administrative fee to be paid to DEA. Additionally, a unique
identification number (i.e., supply agreement number) is needed for
tracking purposes. For the purposes of describing the general transaction
process, "buyer" means DEA-registered researcher or manufacturer who has a
BFSA to purchase "manicured plant material" from grower. "Manicured plant
material" means the dried leaves, flowering tops, and seeds of marihuana
that are deliverable to DEA within four months of harvest. (See 65 FR
69574-01)
3 Grower may at any time abandon its right to manufacture all or any part
of such quota by filing with the UN Reporting and Quota Section a written
notice (email preferred) of such abandonment in accordance with the
provisions of 21 CF.R. § 1303.27. Grower will identify which Buyer's
bona fide supply agreement resulted in the request to abandon any portion
of its IMQ. If DEA has collected payment and an administrative fee from the
Buyer, DEA will return the negotiated rate payment back to the Buyer, but
not the administrative fee paid to DEA.
B. Advance Notification and Invoicing
In accordance with the MOA, the grower will provide DEA with a 15-day
advance written notification of its intent to harvest marihuana, including
the date/time in which harvesting will begin.
When the grower provides this notification, the grower will invoice4
DEA for the harvested marihuana it intends to sell to DEA.
Additionally, the buyer is expected to submit an order form (DEA
Form 222), expressing all quantities in kilograms, to DEA for the purchase
of marihuana to be harvested.
DEA, in turn, will invoice5 the buyer identified in the grower's
invoice. The buyer's order form number will be referenced in DEA's
invoice to the buyer; therefore, the order form must be received by DEA
before DEA can invoice the buyer.
Upon receipt of payment, DEA will authorize the grower to ship.
Advance Notification and Invoicing Process
----------------------------------------------------------------
4 As stated in the MOA, the invoice from the grower to DEA will state the
quantity and negotiated price for each buyer and the DEA registration
number of the buyer with which grower has a BFSA. Additionally, a unique
identification number (i.e., supply agreement number) is needed for
tracking purposes.
5 DEA will issue a separate invoice to the buyer that contains date,
invoice number, supply agreement number; the growers name, DEA registration
number, address, phone number, Tax ID number, DEA vendor code; buyer's
DEA registration number, address, phone number, Tax ID number; DEA field
office name, DEA-222 order form number, payment terms; and quantity, price,
DEA administrative fee, subtotal dollar amount, sales tax (if any), and
total dollar amount. See Sample DEA Invoice
C. Harvest and Transfer of Ownership
DEA personnel will arrive at the grower's registered location to take
physical possession of the crop. While DEA will make every effort to arrive
on the day of harvest, DEA will take possession within four months of the
harvest.6
DEA will take ownership of the crop by executing a DEA Form 222.
Grower may need to store marihuana in a pre-approved secure location on
behalf of DEA.
DEA will authorize the grower to make distributions from DEA's
stocks of marihuana to those buyers who entered into BFSAs with the grower
once DEA has confirmed that the buyer has made payment to DEA for both the
negotiated rate and the administrative fee. The grower shall bear the cost
of shipping marihuana to the buyer.7
DEA will pay the grower within 30 days of taking ownership of the
crop.
Harvest and Transfer of Ownership Process
A grower may at any time abandon its right to manufacture all or any part
of such quota. Grower will identify which buyer's BFSA resulted in the
request to abandon any portion of its IMQ. If DEA has collected payment and
an administrative fee from the buyer, DEA will return the negotiated rate
payment back to the buyer, but not the administrative fee paid to DEA.
The United States assumes no liability with respect to the performance of
any contractual terms agreed to by a grower and a buyer of bulk marihuana,
including but not limited to the quantity or quality of any marihuana
delivered to a Buyer. If a buyer deems the delivered marihuana to be
defective, the Buyer's sole remedy for damages will be against Grower and
not the United States.
----------------------------------------------------------------
6 If a buyer(s) has not paid the negotiated purchase price and
administrative fee to DEA at the time in which DEA and grower are prepared
to transfer ownership, then DEA will not accept title to that corresponding
quantity of marihuana. If payment from the buyer has not been received
within four months of harvest, and if grower fails to provide a substitute
BFSA from a new buyer, DEA will direct the grower to destroy that
corresponding quantity of marihuana.
7 In accordance with the MOA, the grower may also distribute from
grower's existing stock. The grower will provide DEA with 15-day advance
notification of its intent to distribute from its existing inventory and
include the name of the buyer(s), their DEA registration number, and the
quantity to be distributed. DEA will provide a written authorization or
objection to grower's proposed distribution. In the event of written
objection from DEA to the proposed distribution, the grower agrees not to
make the proposed distribution. This 15-day advance notification process
does not apply to distributions of marihuana preparations (including
marihuana extracts that contain alcohol or other non-cannabis-derived
solvents) in Grower's possession.
List of the DEA approved Bulk Manufacturer Marihuana Growers
Biopharmaceutical Research Company LLC
Bright Green Corporation
Groff NA Hemplex LLC
Irvine Labs, Inc.
Maridose, LLC
National Center for Development of Natural Products
Royal Emerald Pharmaceuticals Research and Develop
Scottsdale Research Institute
Hemp/USDA
The U.S. Department of Agriculture regulates hemp production in the U.S.
For more information on hemp production, click Hemp Production |
Agricultural Marketing Service (usda.gov).
Contact Us
Please email us at DRG@dea.gov if you have any questions regarding
cultivation or purchase of marihuana for research or other licit purposes
or any content on this page.
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