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The first regulation in dealing with the hemp in German is the license acquisition for compliance with the Single Convention on Narcotics and Dangerous Drugs of the United Nations. This qualifies the company or individuals to be able to produce or sell prohibited cannabis for medical services. Being part of the United Nations, German had to implement the Berlin treaty, which required licensure of all companies that deal with cannabis importation to German, especially Canadian companies which consists the major European medical cannabis market (Warf, 2014).

In addition, cannabis trading is considered a pharmaceutical market product in Europe. By this fact, therefore, all products must fully meet the GMP or ISO certification and European Union certification in both countries, which means that certificates have to be acquired from the country of origin. Countries that are outside the European Union and are already doing the product, they have to get GMP compliant certification which is needed for importation. Even when the company dealing with the product has acquired this certification, they yet again have to get a license from the country which is being traded. This requirement is a huge setback to companies from the United States due to federal policy restrictions (Duvall, 2016).

Moreover, dealers in the hump import to Germany face the challenge of the multi-billion dollar cap. This is another form of regulation in German in which the product has to be sold to the pharmaceutical wholesalers, instead of being sold directly to the dispensaries, as it is in other countries. This aspect is made to increase the competition index among the distributors the only a few of them that will comply with the requirements will be better placed in carrying out the business. Another implication of the regulation is that huge capital input is required so that the required quantity for meeting the wholesaler demand is necessary. Therefore, this regulation automatically puts a baseline for the small scale cannabis dealers and gives large companies an early advantage (Warf, 2014).

Again, in Germany, there are high import taxes for certain products. The level of the tax that is set for the hump imports is enshrined by the 2016 cap that provided the tariffs at 4.2% for imports that are from the European Union block. However, this rate is quite high for non-EU imports which put it at 19%. The high tariffs are a challenge to the importation of hub (Duvall, 2016).