The regulation that controls the agroindustrial chain of psychoactive cannabis or hemp and hemp for industrial comes into effect


October 19th, 2020, the Ministry of Agriculture issued the Ministerial Agreement No.109-2020, which regulates the  IMPORT, PLANTING, GROWING, HARVEST, POST HARVEST, STORAGE, TRANSPORTATION, PROCESSING, MARKETING AND EXPORT OF NON PSYCHOACTIVE CANNABIS OR HEMP AND HEMP FOR INDUSTRIAL USE. This Ministerial Agreement entered into force upon its signing.

Among the provisions included in this Ministerial Agreement, article 22 establishes the Licenses that have to be obtained by those who wish to engage in the following activities:

• Import and Commercialization of Non-Psychoactive Cannabis or Hemp Seeds, or Non-Psychoactive Cannabis or Hemp Cuttings, or Hemp Seeds for Industrial Use. (LICENSE 1)

• Growing and Production of Non-Psychoactive Cannabis or Hemp Seeds, or Non-Psychoactive Cannabis or Hemp Cuttings, or Hemp Seeds for Industrial Use. (LICENSE 2)

• Cultivation of Non-Psychoactive Cannabis or Hemp. (LICENSE 3)

• Cultivation of Hemp for Industrial Use.

• Non-Psychoactive Cannabis or Hemp Processing and Non-Psychoactive Cannabis or Hemp Derivatives production. (LICENSE 5)

• Plant breeding and / or Germplasm and Research Banks. (LICENSE 6)

• Acquisition of Derivatives and / or Biomass or Non-Psychoactive Cannabis flower or Hemp, or Hemp Biomass for Industrial Use, for Export. (LICENSE 7)

Who can obtain these licenses: entities, cooperatives, associations or communes, universities legally constituted and / or domiciled in Ecuador, which may develop one or more activities provided for in the Regulation.

The minimum extension of land, depending on the type of crop which may be cultivated gradually according to the Agricultural Production Plan approved by the National Agrarian Authority, is the following:

• Hemp for Industrial Use – 5 hectares.
• Non-Psychoactive Cannabis or Hemp – 5 hectares in the open field and 2 hectares in greenhouse.

The period in which the above-detailed minimums must be met may not exceed 5 years from the first crop.

License for the Planting and Production of Non-Psychoactive Cannabis or Hemp Seeds, or of Non-Psychoactive Cannabis or Hemp Cuttings, or of Hemp Seeds for Industrial Use – minimum extension 0.5 hectares.

Licenses for Plant Breeding and / or Germplasm and Research Banks will not be subject to a minimum surface area.

The Ministerial Agreement establishes general and specific requirements for each type of license.

The general requirements are:

a. Application form for Licenses of Non-Psychoactive Cannabis or Hemp, or Hemp for Industrial Use.

b. Copy of the Taxpayer Registry (RUC), which must include the activity or activities to be carried out by the Applicant, information that will be verified on the website of the competent authority.

c. Copy of the statutes of the entity, public entity, cooperative, association or commune, legally constituted, whose objective includes the activities to be carried out by the Applicant.

d. Notarized copy of the appointments of the legal representatives.

e. Affidavit issued by the legal representative of the applicant, granted before a public notary, with the detail of the activities that will be carried out for this purpose, which must be related to the application.

f. Criminal record certificate of the Applicant’s legal representative, its directors and partners, shareholders or members who have a stake greater than 6% of the company’s capital stock, through which it will be verified that they have not been declared criminally liable through a final conviction, for drug trafficking, money laundering, corruption and related crimes. In the event that the shareholders or partners are entities, the certificate of the last individuals in the chain of ownership must be filed, except if those entities are registered in a Stock Exchange, or in the case of an investment fund. In the case of foreign entities, they must file the equivalent document issued by the competent authority of the country of origin; duly legalized.

g. Document in which the organizational structure of the applicant and its members is detailed. In the event that the shareholders, partners or members are legal persons, the last natural persons in the chain of shareholders or partners of legal persons must be disclosed, except if those legal persons are registered in a Stock Exchange or in the case of an investment fund.

h. Form of legality and destination of funds.

i. Proof of payment of the government fee corresponding to the type of license applied, as detailed in the corresponding tariff list.

Here you can access the Ministerial Agreement N° 109-2020


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DISCLAIMER: The preceding text has been prepared for general information purposes only. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any given situation requires the specific opinion and view of the firm in Quito / Guayaquil, Ecuador.