Cannabis toll processing is a process where cannabis products are manufactured by a third-party tolling company on behalf of the purchaser. This type of manufacturing arrangement allows companies to outsource production, reduce overhead costs, and save time.
There are many opportunities for cannabis toll processing in Texas, but it’s important to understand the regulations surrounding it before getting started. Let’s take a closer look at what you need to know about cannabis toll processing.
The Benefits of Toll Processing
Texas has long been known for its strict laws regarding cannabis use and production. However, there are still several benefits to using cannabis toll processing in Texas instead of traditional manufacturing methods. By outsourcing production, companies can save money on overhead costs such as labor, equipment maintenance, taxes, and more.
Additionally, since everything is done remotely with no physical presence on-site required from either party, it eliminates any potential legal issues that may arise from producing cannabis products within state borders.
Finally, since the entire process happens virtually between two remote parties, it reduces lead times significantly compared to traditional manufacturing methods.
Regulations Surrounding Toll Processing
Due to the nature of cannabis production in Texas being heavily regulated by both state and federal law enforcement agencies, companies must be sure that all aspects of their operations are compliant with both sets of regulations or risk facing serious penalties.
As such, when entering into an agreement with a third-party manufacturer for toll processing services in Texas, companies must ensure that they have adequately researched all applicable laws beforehand and have taken steps to ensure compliance throughout every stage of production.
This includes verifying that all necessary licenses are obtained by both parties prior to initiating any work as well as verifying that all required permits and inspections have been completed properly throughout each step of the process before final delivery takes place.
