Industrial Hemp Regulations: SOR/2018-145

Canada Gazette, Part II, Volume 152, Number 14

Registration

June 27, 2018

CANNABIS ACT

P.C. 2018-949 June 26, 2018

Her Excellency the Governor General in Council, on the recommendation of the Minister of Health, pursuant to subsection 139(1) of the Cannabis Act^{footnote a}, makes the annexed Industrial Hemp Regulations.

Industrial Hemp Regulations

Interpretation

Definitions — Regulations

1 (1) The following definitions apply in these Regulations.

Act means the Cannabis Act. (Loi)

approved cultivar means any variety of industrial hemp set out in the List of Approved Cultivars, published by the Government of Canada on its website, as amended from time to time. (cultivar approuvé)

competent laboratory means a laboratory that is owned or operated by a holder of a licence for analytical testing issued under subsection 62(1) of the Act, or a laboratory outside Canada that is recognized as a qualified laboratory, for the application of the United Nations’ Single Convention on Narcotic Drugs, 1961, as amended from time to time, by the competent authorities of the country in which it is located. (laboratoire compétent)

cultivation means the obtaining of industrial hemp by cultivating it. (culture)

customs office has the same meaning as in subsection 2(1) of the Customs Act. (bureau de douane)

customs officer has the meaning assigned by the definition officer in subsection 2(1) of the Customs Act. (agent des douanes)

export permit means a permit issued under subsection 62(1) of the Act that authorizes the exportation of seed or grain. (permis d’exportation)

form in relation to industrial hemp, means the whole plant, flowering heads, leaves, branches, seed, grain or fibre, as the case may be. (forme)

grain means achene of industrial hemp that is not represented, sold or used to grow a plant. (grain)

import permit means a permit issued under subsection 62(1) of the Act that authorizes the importation of seed or grain. (permis d’importation)

licence means a licence issued under subsection 62(1) of the Act in relation to industrial hemp. (licence)

partnership does not include an incorporated entity. (société de personnes )

pedigreed status has the same meaning as in subsection 2(2) of the Seeds Regulations. (qualité Généalogique)

plant breeder means an individual who is recognized by the Canadian Seed Growers’ Association as a plant breeder, under the Canadian Regulations and Procedures for Breeder Seed Crop Production, published by the Canadian Seed Growers’ Association, as amended from time to time. (sélectionneur de plantes)

propagation means the obtaining of industrial hemp by propagating it for the purpose of developing a new variety. (multiplication)

seed means achene of industrial hemp that is represented, sold or used to grow a plant. (graine)

THC means delta-9-tetrahydrocannabinol. (THC)

variety has the same meaning as in subsection 2(2) of the Seeds Regulations. (variété)

Definition — Act and Regulations

(2) For the purposes of the Act and these Regulations, industrial hemp means a cannabis plant — or any part of that plant — in which the concentration of THC is 0.3% w/w or less in the flowering heads and leaves.

Determination of THC concentration

(3) The determination of the THC concentration must take into account the potential to convert delta-9- tetrahydrocannabinolic acid into THC.

Exemptions

Importation, exportation and wholesale sale

2 (1) A derivative, or a product made from that derivative, that is being imported, exported or sold at wholesale is exempt from the application of the Act if the THC concentration of a representative sample from each lot or batch of the derivative or product is 10 μg/g THC or less when tested at a competent laboratory using a validated test method and

• (a) in the case of importation or exportation, the shipment is accompanied by a certificate of analysis from a competent laboratory in the country of origin of the derivative or product that sets out the THC concentration in μg/g in the samples;
• (b) in the case of the wholesale sale, the outer container, other than the shipping container, or outer covering of the derivative or product is labelled, “Contains 10 μg/g THC or less — Contient au plus 10 μg/g de THC”.

Production

(2) A derivative, or a product made from that derivative, is exempt from the application of the Act if after production, the THC concentration of the resulting product is 10 μg/g THC or less.

Definition — derivative

(3) In this section, derivative means a product that is made by processing only the grain of industrial hemp.

Licence

Authorized activities

3 (1) A holder of a licence is authorized to conduct any of the following activities that are authorized by the licence:

• (a) to sell industrial hemp;
• (b) to import or export seed or grain;
• (c) to cultivate industrial hemp;
• (d) in the case of a plant breeder, to propagate industrial hemp;
• (e) to possess seed or grain for the purposes of cleaning it;
• (f) to possess grain for the purpose of processing it; or
• (g) to obtain seed by preparing it.

Offer

(2) A holder of a licence that authorizes an activity referred to in any of paragraphs (1)(c) to (g) is also authorized to offer to conduct that activity.

Ancillary activities

(3) A holder of a licence is authorized, to the extent necessary to conduct the activity authorized by the licence, to possess industrial hemp, to obtain or offer to obtain industrial hemp by harvesting it, and to transfer, transport, send or deliver industrial hemp.

Exemption

(4) A holder of a licence and the person referred to in subsections 71(1) to (3) of the Act are exempt from the application of Subdivisions A to D of Division 2 of Part 1 of the Act in relation to the conduct of the activity authorized by the licence or the conduct of the ancillary activity authorized under subsection (3).

Licence — content

4 The licence must set out the following information:

• (a) the name and mailing address of the holder of the licence;
• (b) the licence number;
• (c) the activity that is authorized, the address of each place, with the exception of the cultivation site, where the activity is authorized, and the form of industrial hemp authorized for each activity;
• (d) in the case of a licence that authorizes propagation, the variety of industrial hemp or the name or number of the germplasm of industrial hemp that will be used in the propagation;
• (e) any conditions that the Minister considers appropriate;
• (f) the effective date of the licence; and
• (g) the date of expiry of the licence.

Licence amendment

5 A holder of a licence must submit an application for an amendment to the licence if they propose to make any of the following changes:

• (a) a change to the mailing address of the holder of the licence;
• (b) in the case of a licence that authorizes propagation, a change to the variety of industrial hemp or the name or number of the germplasm of industrial hemp that is set out in the licence;
• (c) a change to the authorized activity that is set out in the licence.

Notification — changes

6 (1) A holder of a licence must notify the Minister of any of the following changes, by submitting a description of the change, within 30 days after the change or of becoming aware of the change:

• (a) a change to the name of the holder of the licence;
• (b) a change to the partnership name, corporate name, or any other name registered with the federal government or with the government of a province, under which the licence holder intends to identify themself or conduct the activity authorized by the licence or, in the case of a partnership, corporation or cooperative, a change to the name of a partner, officer or director;
• (c) a change to the telephone number or email address of the holder of the licence;
• (d) in the case of a partnership, corporation or cooperative, the addition, departure or replacement of a partner, officer or director;
• (e) a change to the address of the place where an activity is authorized;
• (f) a change to the address of the place for document retention as provided in the licence application or the address previously provided under this paragraph;
• (g) a change in the ownership of the land used to cultivate industrial hemp;
• (h) the cessation of the activity authorized by the licence.

Change to name

(2) If the notification is in respect of a change referred to in paragraph (1)(b), the holder of the licence must provide the Minister with a copy of the document filed with the federal government or with the government of a province that states the name of the holder and any other registered name under which the holder intends to identify themself or conduct the activity authorized by the licence.

Addition or replacement of a partner, officer or director

(3) If the notification is in respect of the addition or replacement of a partner, officer or director, the holder of the licence must provide the Minister with the name and date of birth of the new partner, officer or director.

Change in ownership

(4) If the notification is in respect of a change in the ownership referred to in paragraph (1)(g), the holder of the licence must provide the Minister with a declaration signed and dated by the new owner of the land indicating that the new owner consents to the land being used to cultivate industrial hemp.

Revocation — other circumstances

7 (1) For the purpose of paragraph 65(h) of the Act, other circumstances for the revocation of a licence are the following:

• (a) the holder of the licence has requested, in writing, the revocation;
• (b) the holder of the licence has changed their name;
• (c) in the case of a partnership, a partner has been added, has departed or has been replaced;
• (d) the address of the place where the activity is authorized, with the exception of the cultivation site, has changed;
• (e) the holder of the licence has sowed seed that is not of pedigreed status or of an approved cultivar;
• (f) the holder of a licence that authorizes cultivation for seed is no longer a member of the Canadian Seed Growers’ Association;
• (g) the holder of a licence that authorizes propagation is no longer a plant breeder; and
• (h) in the case of a holder of a licence that authorizes the obtaining of seed by preparing it, the registration referred to in Part IV of the Seeds Regulations has been cancelled.

Exception

(2) Paragraph (1)(e) does not apply to a holder of a licence that authorizes propagation.

Import Permit

Permit for each shipment

8 For the importation of seed or grain, in addition to holding a licence that authorizes that activity, a holder of a licence must hold an import permit for each shipment that is imported.

Import permit — content

9 The import permit must set out the following information:

• (a) the name and mailing address of the holder of the permit;
• (b) the permit number and the number of the licence that authorizes the importation;
• (c) the name of the exporter and their address in the country of export;
• (d) the port of entry into Canada;
• (e) each mode of transportation used;
• (f) whether seed or grain is being imported and the quantity, in kilograms, of each form imported;
• (g) the variety of industrial hemp from which the seed or grain was harvested or, in the case of germplasm, its name or number;
• (h) the concentration of THC, expressed as a percentage w/w, in the flowering heads and leaves of the variety of industrial hemp from which the seed or grain was harvested;
• (i) any conditions that the Minister considers appropriate;
• (j) the effective date of the permit; and
• (k) the date of expiry of the permit.

Refusal — other ground

10 For the purpose of paragraph 62(7)(h) of the Act, another ground for the refusal to issue an import permit is that the applicant does not hold a licence that authorizes importation.

Period of validity

11 An import permit is valid until the earliest of the following dates:

• (a) the date on which the shipment is imported;
• (b) the date of expiry of the permit or the date of its revocation;
• (c) the date of expiry of the licence that authorizes importation or the date of its revocation; and
• (d) the date of revocation of the permit for exportation issued by the competent authority of the country of export that pertains to the shipment.

Export Permit

Permit for each shipment

12 For the exportation of seed or grain, in addition to holding a licence that authorizes that activity, a holder of a licence must hold an export permit for each shipment that is exported.

Export permit — content

13 The export permit must set out the following information:

• (a) the name and mailing address of the holder of the permit;
• (b) the permit number and the number of the licence that authorizes the exportation;
• (c) the name of the importer and their address in the country of import;
• (d) the port of exit from Canada;
• (e) each mode of transportation used;
• (f) whether seed or grain is being exported and the quantity, in kilograms, of each form exported;
• (g) the variety of industrial hemp from which the seed or grain was harvested or, in the case of germplasm, its name or number;
• (h) the concentration of THC, expressed as a percentage w/w, in the flowering heads and leaves of the variety of industrial hemp from which the seed or grain was harvested;
• (i) any conditions that the Minister considers appropriate;
• (j) the effective date of the permit; and
• (k) the date of expiry of the permit.

Refusal — other ground

14 For the purpose of paragraph 62(7)(h) of the Act, another ground for the refusal to issue an export permit is that the applicant does not hold a licence that authorizes exportation.

Period of validity

15 An export permit is valid until the earliest of the following dates:

• (a) the date on which the shipment is exported;
• (b) the date of expiry of the permit or the date of its revocation;
• (c) the date of expiry of the licence that authorizes exportation or the date of its revocation; and
• (d) the date of expiry of the permit for importation issued by the competent authority of the country of import that pertains to the shipment or the date of its revocation.

Importation

Seed

16 An importer of seed must import only

• (a) seed of pedigreed status that is of an approved cultivar and is recognized under the Organisation for Economic Co-operation and Development Seed Schemes or by the Association of Official Seed Certifying Agencies; or
• (b) in the case of a plant breeder, seed of a variety of industrial hemp that is set out in their licence, or the germplasm whose name or number is set out in their licence.

Grain

17 An importer of grain must import only grain from a country that participates in the Organisation for Economic Co-operation and Development Seed Schemes or a country that has an agency that is a member of the Association of Official Seed Certifying Agencies.

Accompanying document

18 An importer of seed or grain must ensure that each shipment is accompanied by a document, issued by the responsible authority of the country of exportation, that establishes that the seed or grain is industrial hemp and that it originated from that country.

Provision of copy of import permit

19 An importer of seed or grain must provide a copy of the import permit to the customs office at the time of importation.

Information and documents

20 An importer must, within 20 days after the date of release of a shipment of seed or grain in Canada, provide the Minister with the following information and documents:

• (a) their name, the number of the licence that authorizes the importation and the import permit number issued in respect of the shipment;
• (b) the date of release of the shipment;
• (c) the quantity, in kilograms, of each form imported; and
• (d) if the shipment consists of seed, documents establishing that
  • (i) the seed is of pedigreed status that is of an approved cultivar, and
  • (ii) in the case of a plant breeder, the seed is of a variety of industrial hemp set out in their licence or the germplasm is the one whose name or number is set out in their licence.

Disclosure of information

21 The Minister may, for the purpose of verifying whether an importation of seed or grain complies with these Regulations, provide to a customs officer any information provided in the import permit application or referred to in sections 9 and 20 and inform that customs officer whether the import permit has been suspended or revoked.

Exportation

Provision of copy of export permit

22 An exporter of seed or grain must provide a copy of the export permit to the customs office at the time of exportation.

Information

23 An exporter must, within 20 days after the date of exportation of a shipment of seed or grain, provide the Minister with the following information:

• (a) their name, the number of the licence that authorizes the exportation and the export permit number issued in respect of the shipment;
• (b) the date of exportation of the shipment; and
• (c) the quantity, in kilograms, of each form exported.

Disclosure of information

24 The Minister may, for the purpose of verifying whether an exportation of seed or grain complies with these Regulations, provide to a customs officer any information provided in the export permit application or referred to in sections 13 and 23, and inform that customs officer whether the export permit has been suspended or revoked.

Possession of grain for processing

Processing

25 A holder of a licence that authorizes the possession of grain for the purpose of processing it must

• (a) render it non-viable; and
• (b) if the processing results in the obtaining of non-viable grain,
  • (i) have it tested for viability at a laboratory that is designated as an accredited laboratory under section 14 of the Canada Agricultural Products Act, and
  • (ii) retain records that demonstrate that the grain is non-viable.

Cultivation and Propagation

Seed of pedigreed status of approved cultivar

26 (1) A holder of a licence that authorizes cultivation, other than as a plant breeder, must sow only seed of pedigreed status that is of an approved cultivar.

Authorized variety or germplasm

(2) A plant breeder who holds a licence that authorizes cultivation or propagation must cultivate or propagate only the variety of industrial hemp that is set out in their licence or the germplasm whose name or number is set out in their licence.

Notification

27 (1) A holder of a licence that authorizes cultivation, other than for the purpose of developing a new variety of industrial hemp, must provide the Minister with the following information within 30 days after seeding:

• (a) the variety of industrial hemp cultivated;
• (b) the number of hectares cultivated for each form of industrial hemp set out in the licence;
• (c) the Global Positioning System coordinates of each cultivation site;
• (d) if any part of the site is cultivated for seed, the Global Positioning System coordinates of that part of the site; and
• (e) a declaration that the holder of the licence is the owner of the land used for cultivation or a declaration signed and dated by the owner of the land indicating that they consent to that use.

Declaration

(2) If the holder of a licence is a partnership, corporation or cooperative, the declaration referred to in paragraph (1)(e) must be signed and dated by the partner, officer or director who has the authority to bind the holder of the licence.

Sale — flowering heads, leaves and branches

28 A holder of a licence that authorizes sale may only sell the flowering heads, leaves and branches to a holder of a licence, or a licence within the meaning of the Cannabis Regulations.

Testing

29 (1) A holder of a licence that authorizes cultivation for seed must, for the purpose of determining the concentration of THC in the flowering heads and leaves

• (a) have a representative sample of the flowering heads and leaves collected and dried; and
• (b) have a portion of the representative sample tested at a competent laboratory using validated test methods.

Test results

(2) The holder of the licence must submit the test results expressed as a percentage w/w, together with the name of the approved cultivar to which the test relates, to the Minister within 15 days after receiving the results.

Retention of representative sample

(3) A portion of the sample referred to in paragraph (1)(a), in an amount that is sufficient to be tested, must be retained for at least one year.

Maintenance of equipment

30 A holder of a licence that authorizes cultivation must maintain all equipment that is used to sow or harvest industrial hemp in a manner that prevents its contamination and avoids the inadvertent dissemination of the seed.

General Provisions

Storage

31 A holder of a licence that authorizes sale must store flowering heads, leaves or branches that are intended for sale under section 28 under conditions that maintain their quality.

Transport, send and deliver

32 A holder of a licence that authorizes sale must transport, send or deliver flowering heads, leaves or branches that are intended for sale under section 28 in a manner that maintains their quality.

Documents

General

33 (1) A holder of a licence must retain documents that contain the following information:

• (a) the form in which the industrial hemp is imported, exported, purchased or sold, and its variety, if applicable;
• (b) the quantity, in kilograms, of each form imported, exported, purchased or sold;
• (c) the date on which each shipment of industrial hemp is sent or received;
• (d) in the case of a holder that transports, sends or delivers industrial hemp, the name of the person that conducts these activities on behalf of the holder, if applicable; and
• (e) the results of any tests required by these Regulations.

Licence that authorizes sale

(2) A holder of a licence that authorizes sale must also retain documents that contain the following information:

• (a) the name, address and licence number of the holder of a licence or a licence within the meaning of the Cannabis Regulations to which any flowering heads, leaves, branches, seed or grain is sold; and
• (b) if applicable, the name and licence number of the holder of a licence from which the flowering heads, leaves, branches, seed or grain was purchased, the date on which it was purchased and the quantity, in kilograms, of each form that was purchased.

Licence that authorizes importation

(3) A holder of a licence that authorizes importation must also retain documents that contain the following information:

• (a) the name, address and licence number of the holder of a licence, or a licence within the meaning of the Cannabis Regulations, to which the seed or grain is sold; and
• (b) the name of the exporter and their address in the country of export.

Licence that authorizes exportation

(4) A holder of a licence that authorizes exportation must also retain documents that contain the following information:

• (a) the name of the importer and their address in the country of import; and
• (b) if applicable, the name and licence number of the holder of a licence from which the seed or grain was purchased, the date on which it was purchased and the quantity, in kilograms, of each form that was purchased.

Licence that authorizes cultivation

(5) A holder of a licence that authorizes cultivation must also retain documents that contain the following information:

• (a) the quantity of seed, in kilograms, of each approved cultivar that is sown or, in the case of a plant breeder, of each variety, and the quantity of seed harvested, in kilograms; and
• (b) except in the case of the plant breeder, confirmation of the pedigreed status of the seed sown, including the official tag as defined in subsection 2(2) of the Seeds Regulations.

Place and period of retention

(6) The documents referred to in subsections (1) to (5) must be retained at the address of the place for document retention as provided in the licence application, or at the address provided under paragraph 6(1)(f), for at least one year after the day on which they were prepared or received.

Consequential Amendment

34 Subparagraph 25(b)(i) of these Regulations is replaced by the following:

• (i) have it tested for viability at a laboratory that is designated as an accredited laboratory under section 2.1 of the Seeds Act, and

Coming into Force

S.C. 2018, c. 16

35 (1) These Regulations, except section 34, come into force on the day on which subsection 204(1) of the Cannabis Act comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

S.C. 2012, c. 24

(2) Section 34 comes into force on the day on which section 90 of the Safe Food for Canadians Act comes into force.

N.B. The Regulatory Impact Analysis Statement for these Regulations appears at page 2803, following SOR/2018-144.