Federal Seizures of Regulated Cannabis Products Impact New Mexico Businesses

NEW YORK- In recent weeks, U.S. Customs and Border Protection (CBP) agents have reportedly seized regulated cannabis products at least a dozen times at border checkpoints in New Mexico, impacting state-licensed cannabis businesses. This marks a shift from the previous hands-off approach by federal authorities in weed-legal states.

New Mexico, which legalized medical cannabis in 2019 and adult-use cannabis in 2021, has seen little interference from federal authorities until now. The seizures have raised concerns among local business owners and industry representatives, who argue that this federal action is harming small businesses and resulting in a loss of tax revenue for the state.

Ben Lewinger, executive director of the New Mexico Chamber of Commerce, noted that similar increased activity is not being observed in other border states like California and Arizona. He has called on the Biden administration to direct the Department of Homeland Security to stop targeting a product that poses no threat.

Nick Spoor, operations manager at Top Crop Cannabis Co., expressed surprise at the recent seizure of products from one of the company’s vehicles, stating that they had been compliantly transporting cannabis products through CBP checkpoints for over a year without issue.

The situation escalated when Ethan Ramsey, an employee of Las Cruces cannabis producer Head Space Alchemy, was arrested by the CBP while delivering samples to a cannabis lab. The company has reportedly lost about $20,000 in product due to seizures, and employees now have records with the federal government.

A CBP spokesperson stated that marijuana remains a Schedule I controlled substance under federal law, and agents will continue to enforce the law against those in possession of marijuana anywhere in the United States.

Matt Chadwick, CEO of Top Crop Cannabis Co., highlighted the potential devastating impact on businesses, with some potentially facing dire circumstances due to the seizures. He emphasized that people’s lives and businesses are at stake, and it’s not fair for them to lose everything they’ve worked for due to these federal actions.