Proposed Fees for Cannabis Regulation (Infographic)

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Organization: Health Canada

Date published: July 2018

Step 1: Licence Application Development

Determine which licence or licences you want to apply for and develop your application.Footnote 1

  • Standard: You can apply for both Standard licences (Cultivator and/or Processor) in one application.
  • Micro: You can apply for both Micro licences (Cultivator and/or Processor) in one application.
  • Nursery
  • Sale For Medical Purposes

Step 2: Application Screening

Submit your application and your non-refundable Application Screening Fee:

  • $3,277 – Standard Cultivator, Standard Processor, and Sale for Medical Purposes.

OR

  • $1,638 – Micro Cultivator, Micro Processor and Nursery.

If your application screening is rejected, the application process must be restarted at Step 1.Footnote 4 If your application screening is accepted, the next step is security screening.

Step 3: Security Screening

Submit your non-refundable Security Screening Fee(s)

  • $1,654 – The Security Screening Fee is for each individual that requires a security screening

If your security screening is rejected, the application process must be restarted at Step 1.Footnote 4 If your application screening is accepted, the next step is granting the licence.

Step 4: Licence Granted

Submit your Annual Regulatory FeeFootnote 2  before beginning operations and once a year thereafter.

Annual Regulatory Fee:

  • For Micro or Nursery – The Annual Regulatory Fee is the higher of $2,500 or 1% of the first $1 million in gross revenue, and 2.3% on revenue above $1 million
  • For Standard – The Annual Regulatory Fee is the higher of $23,000 or 2.3% of gross revenue.Footnote 3 

Ongoing Fees

Annual Regulatory Fee (at the rate established for the given licence class)

Footnote 1

Industrial hemp, analytical testing and research licences, as well as manufacturers of health products containing cannabis, would be exempt from all fees associated with the Cannabis Act.

Return to footnote 1 referrer

Footnote 2

Licence holders providing cannabis exclusively for medical purpose may be exempt from the Annual Regulatory Fee, see consultation paper for details.

Return to footnote 2 referrer

Footnote 3

The rate of 2.3% may need to be adjusted upward depending on the final decision to apply the fee based on forecasted or previous year’s actual revenue or a combination of the two.

Return to footnote 3 referrer

Footnote 4

Should the application screening or security screening be rejected, the entire application process will need to be restarted, and the associated fees will need to be submitted for the new application.

Return to footnote 4 referrer

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2020-09-22