In a long-awaited shift that signals growing legal acceptance of industrial hemp, German customs authorities have begun issuing official tobacco tax stamps for THC-free hemp flowers. The move, confirmed by the Cannabis Industry Association (BvCW), marks a regulatory milestone: these products are now being formally recognized not as “cannabis,” but as taxable industrial goods.
The development applies to flowers declared to contain no detectable THC and is seen by industry stakeholders as an essential step toward legitimizing a commercial category that has long existed in legal limbo.
“The decision is a step in the right direction,” said Lisa Haag, coordinator for technology, trade and services at the BvCW. “Ultimately, the issuance of tax stamps brings more tax revenue, more legal certainty, and more economic freedom of action. The Federal Ministry of Finance can create a win-win-win situation for consumers, German SMEs, and society as a whole by issuing instructions to customs.”
From prohibition to taxation
Historically, smokable hemp flowers — even with THC levels below 0.3%, the EU threshold for industrial hemp — have been treated as cannabis by German customs and law enforcement due to the so-called “intoxication clause” in the German Cannabis Act (KCanG). This clause enabled authorities to classify hemp products as narcotics based solely on the theoretical potential for misuse.
By issuing tax stamps, the Bielefeld Main Customs Office is now signaling a shift: products with undetectable THC levels are no longer being classified as cannabis, and are therefore taxable under the Tobacco Tax Act.
For Weedo, which has long sought compliance to market its line of hemp buds and CBD products, the change represents long-overdue legal recognition.
“We are very pleased that customs has now apparently changed its legal opinion — that industrial hemp with undetectable THC levels is generally not cannabis and therefore not prohibited,” said Philipp Ferrer, the company’s managing director. “This shift allows the product to be taxed as a legal good, and we welcome that. We deeply regret that our industry was denied this important market access for so long and unnecessarily.”
Weedo’s own legal battle has been central to the issue. The Düsseldorf Finance Court ruled in the company’s favor in November 2024, ordering tax stamps to be issued for THC-free hemp flowers. While the case remains on appeal at the Federal Fiscal Court, recent regulatory shifts appear to be aligning with the court’s logic.
Push for broader reform
Although the change at the customs office is currently limited to products declared as 0.0% THC, the BvCW and industry stakeholders are pushing to extend this recognition to all compliant hemp flowers with up to 0.3% THC — the EU’s accepted threshold.
Dr. Ferdinand Weis, attorney and BvCW board member, said this selective recognition is now legally and politically untenable. “In light of the awarding of tax stamps… the refusal to issue tax stamps to Weedo will now ultimately be legally untenable,” Weis said. He added that the association will continue advocating for broader recognition and for the full removal of the intoxication clause, which remains on the books after a failed legislative attempt in the last parliamentary session.
The General Customs Directorate, however, has indicated it may continue to follow earlier legal interpretations, creating uncertainty for companies in other regions.