What industry needs to know about cannabis
On this page
- Impact of the new law and regulations on industry
- Apply for or amend a licence
- Packaging and labelling requirements under the new Act
- Cannabis Tracking and Licensing System
- Compliance and enforcement under the Cannabis Act
- Prohibitions on promotions
- Cost recovery
- Leaving Canada if you are involved in the cannabis industry in Canada
- International trade and cannabis
Impact of the new law and regulations on industry
If you are a licensed producer of cannabis for medical purposes under the previous Access to Cannabis for Medical Purposes Regulations and have not yet transferred your licence under the Cannabis Act, please contact Health Canada.
Apply for or amend a licence
Cannabis licence holders may need 2 licences: 1 from Health Canada and, possibly, 1 from the Canada Revenue Agency (CRA).
You must have a licence from Health Canada to:
- grow cannabis commercially for sale or produce cannabis products commercially (large or small scale)
- sell cannabis for medical purposes
- conduct tests on cannabis
- conduct research with cannabis
Application requirements for Health Canada are described on the Apply for a licence under the Cannabis Act and Regulations page.
Apply for a licence from the Canada Revenue Agency to sell cannabis
Cultivators, producers and packagers of cannabis products are required to obtain a cannabis licence from the CRA.
Once licensed, they are also required to:
- buy and apply cannabis excise stamps to their products (if they package cannabis products)
- calculate the duty on their sales
- file their return and send the excise duty to the CRA
An excise stamp must be present on all cannabis products that have been legally produced and are available for purchase.
You may buy cannabis excise stamps only if you have obtained a cannabis licence from the CRA.
Packaging and labelling requirements under the new Act
Industry must follow plain packaging and labelling requirements for cannabis products.
These requirements are designed to:
- protect against accidental consumption
- ensure products are not appealing to children and youth
- provide consumers with information they need to make informed decisions before using cannabis
Cannabis Tracking and Licensing System
Health Canada has launched a new online Cannabis Tracking and Licensing System. This system allows industry to submit and view the progress of applications online. It also allows industry to submit amendments to licences as well as inventory reports.
The Health Canada cannabis tracking system will:
- enable the tracking of cannabis
- prevent legal cannabis from being diverted to the illegal market
- prevent illegal cannabis from being introduced into the legal market
It builds on the reporting system for cannabis for medical purposes that has been in place for nearly 5 years. The system will track the movement of cannabis from cultivation, to processing, to sale.
The system will not include information on individual consumers. It will protect confidential business information.
The Ministerial Order regarding the cannabis tracking system was published in the Canada Gazette, Part II, on September 5, 2018. It came into force on October 17, 2018.
All those with a federal licence to cultivate and process cannabis, and provinces and territories, are required to submit monthly tracking reports to the Minister of Health.
Information on reporting requirements and procedures is available online.
Compliance and enforcement under the Cannabis Act
Industry (licensed or not) must comply with the Cannabis Act and its regulations and are expected to:
- understand the law and their obligations
- understand and cooperate with inspectors
- comply with orders and prohibitions from Health Canada, if applied
Please see Health Canada's compliance and enforcement policy.
Prohibitions on promotion
Prohibitions against cannabis promotion under the Cannabis Act apply to you if you are involved with promoting:
- cannabis accessories
- services related to cannabis
As of October 17, 2018, fees will apply to these classes of licences:
- cultivation (standard, micro, nursery)
- processing (standard, micro)
- sales for medical purposes
These fees are for:
- screening licence applications
- conducting security screening of key persons
- reviewing applications to import or export cannabis for scientific or medical purposes
- covering other regulatory costs, including:
- detailed review of licence applications
- the issuance of licences
- compliance and enforcement activities
Leaving Canada if you are involved in the cannabis industry in Canada
The legalization and regulation of cannabis in Canada will not change Canada's border rules. It is illegal to take cannabis across Canada's international borders.
If you try to travel internationally with any amount of cannabis in your possession you could be subject to serious criminal penalties both at home and abroad. You could also be denied entry at your destination country if you have previously used cannabis or any substance prohibited by local laws.
Canadians travelling to the U.S. for reasons related to the cannabis industry may be deemed inadmissible.
Canadian companies engaging in the cannabis industry in the U.S. may face risks of prosecution or penalties under U.S. law and regulations, including those that criminalize the management, financing and possession of equipment and materials associated with cannabis.
International trade and cannabis
It is prohibited for any company to export or import cannabis for any purposes other than medical or scientific purposes under the Cannabis Act.
There are risks for companies doing business in the cannabis industry in international markets. Make sure you seek advice from legal counsel in the prospective export market before engaging in any kind of commercial activity related to cannabis abroad.
Any foreign company interested in investing in Canada's cannabis industry should fully understand relevant Canadian federal and provincial laws and regulations.