faq


what are the different cultivation licences?

  • Standard cultivation (unlimited cultivation canopy)

  • Micro Cultivation (200m2 of Canopy space not including storage, bathroom, office, drying room, etc)

    Authorized Activities:

  • Possess cannabis

  • Obtain dried or fresh cannabis, cannabis plants or cannabis seeds by propagating, cultivating, harvesting

  • For the purpose of testing, alter the chemical or physical properties of the cannabis

  • Sell and distribute dried cannabis, fresh cannabis, cannabis plants or seeds to other licence holders (cultivators, processors, analytical testers, researchers, cannabis drug licence holders), with the exception that dried cannabis or fresh cannabis cannot be sold to the holder of a nursery licence

  • Sell and distribute cannabis plants or seeds to a licensed nursery

  • Sell and distribute cannabis products that are plants or seeds to a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

  • Send and deliver cannabis products that are plants or seeds to the purchaser at the request of a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

  • Conduct ancillary activities (e.g., drying, trimming, milling, etc.)

    NOTE: Cultivation licences will authorize the growing and harvesting of cannabis, including ancillary activities such as trimming and milling.


what is a nursery license?

Nursery cultivation licences will allow for the production of cannabis plants and seeds in no more than 50m2 of canopy space, but not dried cannabis, fresh cannabis or cannabis oil. Cultivation licences may also permit certain non-retail sale and distribution activities.

Authorized Activities:

  • Possess cannabis

  • Obtain cannabis plants or plant seeds by propagating, cultivating, harvesting

  • For the purpose of testing, alter the chemical or physical properties of the cannabis

  • Sell and distribute cannabis plants or seeds to other licence holders (cultivators, processors, analytical testers, researchers, cannabis drug licence holders)

  • Sell and distribute cannabis products that are plants or seeds to a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

  • Send and deliver cannabis products that are plants or seeds to the purchaser at the request of a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

  • Conduct ancillary activities (e.g., drying )

    NOTE: Maximum of 5kg of flowering heads harvested from plants with the exception of seeds. Must destroy the flowering heads (with the exception of the cannabis plant seeds), leaves and branches of the plants within 30 days of harvesting them.


what are the notices to local authorities?

Prior to submitting an application in the CTLS, applicants for licences to cultivate, process and sell for medical purposes (with possession of cannabis) must provide with their application a copy of the written notice to local authorities who are located in the area of the proposed site, as part of their application.

More specifically, the notice must be provided to a senior official of the following local authorities:

  • the local government

  • the local fire authority

  • the local police force or Royal Canadian Mounted Police detachment (RCMP) that is responsible for providing policing services to that area

    The content of the notice must include:

  • the name of the applicant

  • the expected date on which the applicant will submit the application to Health Canada

  • the class and subclass if applicable of licence that is being sought and the cannabis related activities that are expected to be conducted under that licence

  • the site address, and address of each building on site if applicable, at which the applicant is expecting to conduct cannabis-related activities

    NOTE: You will need the date of each notice, and the name, title and address of the senior official to whom it was addressed.


does the cannabis scout have facilities to conduct commercial activities in?

Yes. We currently have a facility being constructed in Red Deer, Alberta for applicants looking to conduct cannabis activities in called cannabis haven. other provinces will be available shortly as well.


what does security clearance entail?

in order for your application to be approved, Each individual requiring a security clearance must submit a Security Clearance Application to qualify. As part of the criminal record check process, the applicant must provide a “Security Clearance Fingerprint Third Party Consent to Release Personal Information Form.” This must be provided to the local police force, the RCMP, or a private fingerprinting agency accredited by the RCMP. The form authorizes the RCMP to release the criminal record check and fingerprint verification results to Health Canada. Following fingerprinting, a document control number (DCN) is provided on the form, which is used as the identifier for the record check.

NOTE: The process with the local police force, the RCMP, or a private fingerprinting agency accredited by the RCMP, can take anywhere from 3 days to 180 days depending on your file.


CAN PESTICIDES BE USED?

Cannabis must not be treated with a pest control product unless the product is registered for use on cannabis under the Pest Control Products Act or is otherwise authorized for use under that Act.


What are health canada’s cost recovery fees?

the Four fees being proposed are:

  • Application Screening Fee

    Standard licences = $3,277

    Micro and Nursery class licences = $1,638 (50% of standard)

  • Security Screening Fee

    Fee per screening: $1,654

  • Import/Export Permit Fee

    Import/export Permit Fee: $610

  • Annual Regulatory Fee

    Standard licence holders (cultivator and/or processor) would be subject to a recovery rate of 2.3%* of their gross revenue per licence or $23,000 in cases where a licence holder earns annual revenue less than $1M

    Micro class licences (cultivator and/or processor) including nursery licences subject to a fee set at 1% of gross revenue up to $1M, or $2,500. For gross revenues above $1 million, they would pay 2.3%*

    The Annual Regulatory Fee would not apply to those that cultivate, process and sell cannabis exclusively for medical purposes.

    * 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.




what are the different processing licences?

  • Standard Processing (unlimited processing per year)

  • micro processing (up to 600kg max per year)

    authorized activities:

  • Possess cannabis

  • Produce cannabis, other than obtaining it by propagating, cultivating, or harvesting

  • For micro-processing, the cannabis cannot be obtained by synthesis.

  • Sell and distribute cannabis to other licence holders (processors, analytical testers, researchers, cannabis drug licence holders)

  • Sell and distribute to licenced micro-cultivators or standard cultivators: of dried cannabis, fresh cannabis, cannabis plants, or cannabis seeds or cannabis produced for the purposes of testing that is necessary to determine the chemical characterization of cannabis, such as a reference standard

  • Sell and distribute to licenced nursery: of cannabis plants or seeds or cannabis produced for the purposes of testing that is necessary to determine the chemical characterization of cannabis, such as a reference standard

  • Send and deliver cannabis products to a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

  • Send and deliver cannabis products that are plants or seeds to the purchaser at the request of a licence holder that is authorized to sell cannabis for medical purposes or to a person authorized to sell cannabis under a provincial or territorial Act

    NOTE: Processing licences will authorize holders to produce oils, which are not permitted under cultivation licences. Also, if a licence holder also holds a micro-cultivation licence for the same site and the cannabis comes exclusively from that site, the micro-processing maximum quantity does not apply.


What are the qualifications for the Quality assurance person (qap)?

Details needed of proposed individual’s qualifications, and any designated alternate QAP, demonstrating they have the training, experience and technical knowledge related to all the requirements in Part 5 (GPP requirements) of the Cannabis Regulations including:

  • Development and approval of SOPs

  • Pest control management and pesticide testing

  • Quality control relating to storage and shipment of substances

  • GPP as they pertain to facilities (including air filtration), equipment and sanitation

  • Complaint management

  • Approving product quality prior to release for sale

  • Analytical testing and validation of testing methods

  • Residues of solvents (for cannabis oil), if applicable

  • Microbial and chemical contaminants

  • Disintegration/dissolution of cannabis capsules, if applicable

  • Cannabinoid content (THC, THCA, CBD and CBDA, as applicable)

  • Sample collection and retention

    NOTE: In addition, the QAP typically handles recalls and adverse reaction reports. The applicant should submit the individual(s)’ resume and any other information that would be relevant such as a letter of reference or a copy of their diploma, degree, or certificate or transcripts that may be applicable. A proposed work schedule and a summary of the roles and responsibilities of the QAP and their alternate if applicable should also be provided to demonstrate how the QAP will be able to complete all the required activities to maintain compliance.


What is the process of getting approved?

Once an application is submitted in the CTLS, there are a series of steps Health Canada undertakes to review and issue the licence as outlined below. It is important to note that in accordance with 62(5) of the Cannabis Act, the Minister may request the submission of any additional information that pertains to the information contained in the application and that is necessary for the Minister to consider the application. This would be in the form of a request for more information.

  1. Application screening: During screening, the application and attached documents are assessed for completeness, legibility and ability to be further assessed. There is a 30 day service standard for completion of screening of the application by Health Canada.

  2. Review and security clearance: Once an application has passed the screening stage, and security clearance applications are being processed, the application will undergo a detailed review to verify that the requirements are met. Health Canada will work with the RCMP on security clearance applications.

  3. Pre-licensing and approval process: Once Health Canada completes the detailed review of the submitted application, Health Canada provides the applicant with a confirmation of readiness email. This email will prompt the applicant for information to demonstrate that there is a functioning facility/building at the site address. The applicant will be required to provide a site evidence package with documentation including, but not limited to, detailed video walkthroughs of both the interior and exterior of the site, and site and building plans including descriptions and photographs that clearly detail facility completion.

    Note: Following the review of this information, an on-site pre-licence inspection by Health Canada inspectors may be deemed necessary prior to further licensing decisions. If an inspection is required, the inspection team will contact the applicant to schedule the prelicence inspection. In the case where an on-site pre-licence inspection is not required, the licence issuance will be based on the thoroughness of information found in the site evidence package.

  4. Issuance of licence: Once all information has been reviewed, including the results and observations from a pre-licence inspection, if necessary, and all security clearances have been granted, an initial licence for authorized activities is issued. A hard copy of the licence as well as an accompanying issuance letter detailing any conditions around the issued licence is mailed to the identified mailing address. In addition, all security-cleared key personnel are sent letters regarding the status of their security clearances for that site, under that application. Following issuance of the licence, Health Canada holds a teleconference with the new licence holder to discuss the licence, including any conditions.


Who should apply for a cra cannabis license?

You must apply for a cannabis licence under the Excise Act, 2001 if you are:

  • cultivating (you grow cannabis products)

  • producing (you produce cannabis products)

  • packaging (you package cannabis products)

NOTE: Even if you have a Health Canada licence, you must apply for a CRA cannabis licence for both medical and non-medical (recreational) purposes. For persons who will be packaging cannabis products, a separate application form is required to register for the cannabis stamping regime. Cannabis excise stamps will be delivered as dry (non-adhesive) individual stamps wrapped in bundles of 500. The unit price of cannabis excise stamps for the period of April 1, 2018 to September 30, 2019 is C$0.00714.


what are the eligibility conditions for a CRA cannabis licence?

  • You are not the subject of a receivership of your debts

  • You have not failed to comply with any Act of Parliament (other than the Excise Act, 2001) or of a provincial or territorial legislature that deals with the taxation or control of alcohol or tobacco, or any regulations under it in the past 5 years

  • You have not acted to defraud her Majesty in the past 5 years

  • Each individual involved must be at least 18 years of age

  • Have a valid business address in Canada

  • Provide a list of all premises that will be cultivating, producing and/or packaging cannabis products

  • Have sufficient financial resources to conduct your business in a responsible manner

  • Hold a valid licence/permit from Health Canada issued under the proposed Cannabis Act

  • Provide a business plan (including a business industry overview, operating plan, financial plan or source of funds, and a sales and marketing plan)

  • Provide acceptable security to cover one month of cannabis duty liability (minimum of $5,000 and a maximum of $5 million)



what is a sales licence?

  • sale for medical purposes

    authorized activities:

  • Possess cannabis products

  • Sell or distribute cannabis products to a client

  • Sell or distribute cannabis products to a licence holder (with the exception of a cultivator)

  • Sell or distribute cannabis products that are dried, fresh, plants or cannabis seeds to micro-cultivator or standard cultivator

  • Sell or distribute cannabis products that are plants or plant seeds to a licenced nursery

  • Sell or distribute cannabis products other than plants or seeds to a hospital employee

    NOTE: Must sell cannabis products in the packaging in which they were sold or distributed to them. Requirements for the application for a sale for medical purposes licence with possession of cannabis differ from those that do not have possession. Sale is to registered clients authorized to use cannabis for medical purposes


who are the Individuals to be security cleared?

directors

  • For all licence classes if the applicant is a corporation or a cooperative)

officers

  • For all licence classes if the applicant is a corporation or a cooperative)

partners

  • For all licence classes if the applicant is a partnership )

license holder

  • For all licence classes. Note: where licensed holder is an individual)

responsible person

  • For all licence classes. Note: this can be the individual who is the licence holder)

head of security

  • For cultivation, processing or sale for medical purposes licence only)

master grower

  • For cultivation license only)

quality assurance person (qap)

  • For processing only)

Head of laboratory

  • For analytical testing only. Note: this person does need to be security cleared)


What are the analytical testing processes to be conducted?

  • Chemical (i.e., contaminants such as heavy metals, foreign matter)

  • Microbial* (i.e., contaminants such as yeast, molds, bacteria, aflatoxins) *Sterility appears as an independent item in the CTLS; however, it is typically captured in the context of microbial testing.

  • Cannabinoid content (e.g., delta-9-tetrahydrocannabinol [THC], tetrahydrocannabinolic acid [THCA], cannabidiol [CBD], and cannabidiolic acid [CBDA])

  • Dissolution/Disintegration

  • Pesticides

  • Solvent residue

  • Sterility

  • Stability (e.g., if the licence holder proposes to include a product expiry date, disintegration test for capsules)

  • Other (e.g., seed viability testing)


Can I cultivate outdoor as well?

Cultivation may be conducted indoors or outdoors.


Do I need an address before submitting an application with health canada?

yes. before we submit your application to health canada, we will need a site address associated with the activities on your application. however, you do not need a building to necessarily start your application.


Can a micro producer apply for an export/import licence?

yes. The import and export provisions operate in the context of Canada's international drug treaty obligations. As such, they are not a vehicle for supplying cannabis to foreign markets where recreational use is legal.

NOTE: Any licensed party who chooses to submit an import or export permit application should expect stringent requirements taking into account relevant considerations including but not limited to:

  • Canada's obligations under international treaties

  • Whether the application is consistent with the relevant provisions in the MMPR or the NCR

  • For export permits, whether the country of final destination has issued an import permit

  • Risks to public safety and security including the risks of diversion


does the building need to be a standalone?

no. extra security parameters will be needed to approve the site if you are connected to other entities.


How long is the cannabis licence from cra valid for?

Your licence is valid for a maximum of 2 years. Your licence will not be automatically renewed. To renew your licence, you must apply for a licence renewal no later than 30 days before the expiration date of your current licence. You must continue to meet the requirements of the licence during the period you are licensed.


HOW LONG DOES IT TAKE TO BECOME LICENSED?

Application processing times are variable and depend on a number of factors, including:

  • the completeness of the application and the thoroughness of the information provided;

  • the timeliness of applicant responses to requests for additional information;

  • the readiness of the applicant to move through the process;

  • the complexity of the application; and,

  • whether the application poses any risks, including a risk to public health, safety or security.

The timeline for security screening of key personnel can also vary depending on the complexity of the applicant's file.

The entire application process may take more than a year to complete.

It is the responsibility of the applicant to ensure that the information provided in their application is detailed and accurate and clearly demonstrates that they are compliant with all the requirements of the Cannabis Act. Insufficient or inaccurate information may be grounds for refusal.


how do I Calculate the duty on cannabis?

A cannabis licensee who packages cannabis products must pay applicable duties.

For cannabis products that are imported, the person who must pay the duty is the importer, owner or other person who is liable under the Customs Act. A cannabis licensee does not have to pay the duty at the time of importation.

please visit the following link to calculate the excise tax https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/excise-duties-levies/collecting-cannabis.html