The hemp confusion in Portugal: ASAE seizes CBD at Kings Yard, but leaves flowers because they are for “collection”

The Food and Economic Security Authority (ASAE) seized around 845 products in a shop of Kings Yard, which “presented in its composition an unauthorized substance – cannabidiol (CBD)”, according to a statement from Press  Among the products seized are bottles of Gin, biscuits, lollipops, gum, chewing gum, tea and chocolate, with a total value of 1.960,00 euros. The hemp flowers, which were labeled as a 'collectible' product, were not seized, “as they were in compliance with the law: correct labeling, legal THC levels and symbolism (no smoking and no sale to minors). 18)”, explained ASAE. The controversy over the legality of CBD (cannabidiol) derived from hemp in Portugal continues, as there is no clear regulation for all these products.

According to the statement sent by ASAE, on July 8th, the authority carried out, “through the Fraudulent Practices Brigade of the Northern Regional Unit – Operational Unit I – Porto, and following a criminal prevention investigation, a inspection operation within the scope of combating food fraud, aimed at verifying the sale of new unauthorized foods, in a food trading establishment, located in the metropolitan area of ​​Porto”.

The lack of information on packaging and labels seems to have been one of the reasons that led to their withdrawal, including “several types of 'hemp flower', the conditions of use of which were silent, as well as the purpose for which they were intended and the respective analytical compositions”. Among the 845 products seized are bottles of Gin, biscuits, lollipops, gum, chewing gum, teas and chocolates which, according to the authority, “presented in their composition an unauthorized substance – cannabidiol (CBD)”. 

Regarding the flowers, which were properly labeled, “they asked countless times what they were for: they know and we can't tell, it's a game of seeing who is more stupid and it's very revolting to have to go through this”

The value of the seized products totals around 1960,00 euros and the store owner now finds himself dealing with a criminal proceedings “for counterfeit abnormal food and for the addition of an unauthorized substance”, says ASAE.

The Gin seized by ASAE has hemp, but not CBD

ASAE says CBD flowers are allowed as a “collectible” object
This inspection action took place last May. The establishment is one of the stores in the Kings Yard chain and, from what CannaReporter was able to determine, not only food but also packages of filters and rolling papers were seized. They did not have any mention of CBD and are the same or similar to those sold in any stationery store or gas station. The reason they were seized, according to authorities, was because they did not have labels in Portuguese. “When questioned, they said they would return everything within a week,” Miguel (fictitious name of a store employee, who preferred to remain anonymous) told CannaReporter, “but when the labels were made and the return was requested, they claimed that , being part of the investigation of a criminal case, they could not release them”.

The hemp flowers were not seized, “as they were in compliance with the law: correct labeling, legal THC levels and symbolism (no smoking and no sale to minors under 18)”, explained ASAE. The flowers were labeled as a collector's item.

The problems of the lack of clear regulation for CBD in Portugal

According to the same source, initially the inspectors showed a very calm attitude. But then they coerced the owner into making the labels at that moment, while they were in the store and he had to deal with the situation. “We are talking about labels for, around, 50 things. As the owner told them that, at that moment, he couldn't, because he was dealing with things with them, and would do it right away, so they said they would have to take them”, said Miguel.

Regarding the flowers, which were properly labeled, “they asked countless times what they were for... they know, and we can't say, it's a game of seeing who is more stupid, and it's very revolting to have to go through this.”

“Basically, they made an interpretation of the law. They saw products that say CBD and it confused them. They said that CBD is only allowed to be sold in pharmacies, everything else is illegal.”

Among the other products seized were CBD crystals (100%) because, “according to what we learned that day, no product with CBD can exceed 20% concentration”. Furthermore, ASAE seized bottles of Gin and other products whose packaging claimed to contain CBD. “The oils were left because they were labeled as 'product for topical application, not for ingestion'. And animal oils, which are practically the same thing, asked to be removed because they could result in an administrative offense.” Currently, there is no national legislation or regulation that speaks of limiting the CBD content to 20%.

“Basically,” the same source told CannaReporter, “they made an interpretation of the law. They saw products that say CBD and it confused them. They said that CBD is only allowed to be sold in pharmacies, everything else is illegal.”

The outrage of hemp traders in Portugal

In the composition of some seized products, such as Gin, the cannabis ingredient is “just hemp” and, according to Miguel, “none of that is made by us. What we sell are highly commercial products. The CBD they have is residual.”

Even if it is residual, the fact that they mention CBD or any other cannabinoid is enough to cause problems with the law. However, Gin specifies that it is a product made from hemp. “They said that Gin was all illegal, but even ASAE has records of the product that says it can be sold. They released the statement, CMTV and other television channels went there... they are attacking those who want to work and are trying to create a business.”

“I feel uninformed and unprotected”

At the time of the seizure, some sheets of certain products were also missing, with their composition and a clear label stating that they were not for human consumption – a fact that allows the law to be circumvented, enabling their sale. This is an accepted hypocrisy, which benefits those who pay for the fines imposed on those businesspeople who are unlucky enough to receive a visit – random or after a complaint – from the authorities.

“People look for these products because the benefits are enormous and this is what makes me gain strength in this business: it is seeing people improve their quality of life and animals too”, Miguel told us, venting “I feel uninformed and unprotected.”

CBD ban is 'unconstitutional', producers say

The regulation on industrial hemp has generated immense controversy in Portugal, with producers and traders in the sector accusing the authorities of “unconstitutionality” and demanding the use of the entire plant. The DGAV – General Directorate of Food and Veterinary – itself admitted to CannaReporter that CBD is your biggest headache and CannaReporter has already written and interviewed extensively on this topic.

Following some seizures, the Portuguese Criminal Instruction Court has already ruled in favor of a trader, forcing the Judicial Police to return 40kg of hemp flowers to him. At the time, the director of the National Unit to Combat Drug Trafficking of the Judiciary Police (PJ), Artur Vaz, told CannaReporter that “objects, plants and substances that were seized were returned and that, according to what results from the court decision, cannot be considered as narcotics. And we naturally complied with what was determined by the court.”

Despite this decision, ASAE continued to make seizures of the same type of products, with several traders reporting the randomness of what they do: in some stores they seize flowers and leave oils or creams, in others they do the opposite, depending on the agents. The lack of a clear law does not help, confusion ensues and there is no easy solution for this sector.

Two years ago, Cannacasa – Industrial Hemp Association yesterday asked the Council of Ministers to suspend Ordinance 14/2022, published on January 5, 2022, which established new rules for the cultivation of hemp in Portugal, as it is “highly harmful to the establishment of a hemp industry in Portugal”. He also requested the Ombudsman and the Attorney General's Office to request the assessment of the Ordinance by the Constitutional Court.

Traders are forced to sell hemp flowers as objects “intended for technical use/collection”, with the indication “do not ingest”, in order to circumvent the lack of regulation of these products in Portugal

ASAE's response

In response to CannaReporter, Ana Maria Oliveira, Chief Inspector of the National Operations Unit of the Public Information Division of ASAE, said that “foodstuffs that contained cannabis and cannot be sold” were seized, adding that the store was inspected because “ there was suspicion.”

We also asked whether the opening of a criminal case “for counterfeit abnormal food and the addition of an unauthorized substance” was justified in this case, to which the Chief Inspector replied that “when a criminal offense is detected, it is opened a criminal case. In this case it was a crime, within the scope of Diploma 28/84. It is typified.” However, the same diploma states that labeling errors constitute a serious economic offense (article 64).

When asked about the need to seize rolling papers and filters, as well as other products approved for sale and which did not contain any illicit substance, she referred us to the Northern delegation, which did not respond to our questions at the time of publishing this article.

Financial losses for traders in the sector

The loss that a seizure of this type can represent for a small trader is enormous. But, in addition, the opening of a criminal case means numerous duties and steps, including appearing before the judge, the Public Prosecutor's Office or the police whenever summoned, the identity and residence statement, with presentations periodic inspections, comply with all evidence collection procedures and do not change residence or be absent from it for more than 5 days without communicating your new location. And of course, a criminal record for the defendant. Then you will have to cover all the costs and expenses that the process entails.

In the case of Kings Yard, and taking into account that the irregularities were mainly linked to insufficient labelling, it remains to be questioned whether the authorities' actions could have been different. Seizing products that do not present any danger to public health, simply because they do not have labels in Portuguese (and in the case of rolling papers, according to common practice, this would be limited to the box and not each package) does not seem justifiable. In many European countries, supervisory authorities give traders advance notice to correct errors and check compliance with the measures indicated with a new visit after some time. This allows businesspeople and entrepreneurs to correct errors and continue to do their business in a healthy way and without representing administrative costs for the country and opening court cases.

The lack of clear regulation and the lack of knowledge about the substances or the fact that we ignore that hemp and cannabis are different things – given that the leaf is common and the image of it on packaging can be misleading – also makes things quite difficult when it comes to deals with hemp/cannabis-based products. And in these types of cases, even when entrepreneurs justify the composition of their products with technical data sheets or production certificates, it is the decision of the inspectors in the field that prevails. If it turns out that the merchant was right after all, as has happened previously, years will have passed, the products will be out of date and the businessman will have spent many thousands of euros defending himself in court.