Section 3: Exempted substances
Subsection (1) defines an "exempted substance" for the purposes of the Act as a substance listed in Schedule 1. These are substances which are capable of producing a psychoactive effect in an individual when consumed (and would therefore fall within the definition of a psychoactive substance in section 2), but do not constitute psychoactive substances for the purpose of the provisions in the Act. Exempted substances are included in Schedule 1 either because they are already controlled through existing legislation (alcohol, tobacco, medicines and controlled drugs) or because their psychoactive effect is negligible (caffeine and foodstuffs such as nutmeg and chocolate).
	Subsection (2) confers a regulation-making power on the Secretary of State (in practice, the Home Secretary) to add to or vary the list of exempted substances and to remove any substance added to the list through the regulation-making power. It will therefore not be possible, under the regulation-making power, to remove any entry in its entirety from the list in Schedule 1 to the Act as enacted. The regulation-making power is subject to the affirmative resolution procedure (subsection (5)). The Secretary of State must consult the ACMD and such other persons as she or he considers appropriate before making any such regulations; such additional consultees may, for example, include regulatory bodies or other relevant experts (subsection (3)).