At first, licenses were planned to be issued only to five businesses. Only pharmaceutical laboratories were allowed to apply and production could only take place in the Central Department: a region of Paraguay. However, through several presidential decrees, the number of licenses to be issued was increased to 10. Eventually, the first 12 licenses allowing vertically integrated production of medical cannabis (cultivation, production and distribution) were awarded in February 2020.

The SG Resolution No. 433 outlines the requirements and procedures for obtaining a license for controlled production of cannabis.

All medical cannabis cultivators in Paraguay must donate 2% of their cannabis production to the Paraguayan Ministry of Health which will then distribute it to domestic patients.

In 2019, SENAVE Resolution 718 established the conditions for importing seeds into Paraguay.

Under a compassionate use scheme, Paraguayan patients are allowed to import medical cannabis on a case-by-case basis.

In 2020, personal cultivation of medical cannabis was legalized in Paraguay. In order to be able to cultivate cannabis, individuals must have medical certificates that are validated by the Paraguayan Ministry of Public Health and Social Welfare and which certify that the individual’s medical condition can be treated with medical cannabis. In addition, the property where cannabis will be cultivated must be authorized by Paraguay’s National Anti-drug Secretariat (SENAD).

Recreational cannabis is currently illegal in Paraguay. However, Article 30 of Law 1340 has decriminalized the possession of up to 10 grams of cannabis.

Export Potential

Paraguay exports cannabis-derived products to the United States, Canada, Brazil, the United Kingdom and the Netherlands. All of Paraguay’s planned cannabis production for 2024 has already been purchased by the European market. According to the Paraguayan government, more than 600 tons of cannabis, including raw materials and derivative products such as gummies and infusions, has been exported since 2019.

What Is Next?

Currently, the Paraguayan Chamber of Industrial Cannabis is working on expanding its legal framework for medical cannabis. Proposed changes include the elimination of the current 0.5% THC content limit.

Cannabis Licenses Available in Paraguay

Applications for cannabis licenses are evaluated by a committee which consists of members of the Ministry of Health, the Ministry of Industry and Commerce, SENAD, DNVS and SENAVE.

In order to obtain a cannabis license in Paraguay, the following is required:

• A cultivation plan which will be evaluated by the SENAVE.
• An industrialization plan which must outline the equipment and manufacturing process, quality control procedures and the percentage of plants that the company will donate to the government.
• A business plan which includes planned investment.
• A security plan which will be evaluated by the SENAD. For guidance about security measures that must be in place, refer to this document from SENAD.
• A transport plan which must include the vehicles that will be used for transport. At least two vehicles are required.
• A waste management plan.
• A GMP manufacturing certification.
• An export plan if the business wishes to export cannabis.

Once a license is granted to an applicant, they must begin to use it within 24 months after its issuance.

License period: 5 years

It is unclear whether Paraguay currently accepts new applications for cannabis licenses.

Import Authorization

To import cannabis into Portugal, the interest party should be registered in the Cannabis Importer Registry (RIC) and the variety being imported must be registered with the RNCC (National Registry of Commercial Cultivars).

How to become registered in the RIC:

1. Submit the documentation required.
2. The Records Unit will analyze the documents presented by the applicant and raise the file to the Regional Directorate (DOR).
3. The DOR will prepare a technical report within 15 business days.
4. Once the documents are approved by the Records Unit, a certificate of registration will be issued to the applicant.

The following documentation is required to be submitted to obtain an import authorization:

• An application for registration in the RIC, signed by the legal representative and technical manager. A technical manager is an individual who acts as a link between the company they represent and SENAVE.
• All required forms that are outlined in the SENAVE Resolution 718.
• Documentation providing evidence that the applicant has an authorized warehouse.
• Documentation providing proof of payment of invoice for the evaluation service.
• Notarized copies of:
  • The current civil identity card of the legal representative.
  • Professional registration of the technical manager.
  • Current or up-to-date registration invoice.
  • Authorization license issued by the National Directorate of Health Surveillance.

The forms required to be submitted can be found in the annex of the SENAVE Resolution 718.

How to register the variety being imported:

• Submit the registration application form.
• Present the varietal description of cannabis.
• Indicate the country/countries where the variety is registered.
• Present analytical documentation that shows the THC and CBD content.
• Make a payment for the evaluation services.

Paraguay Hemp CBD Market