Industrial Hemp Regulations (SOR/2018-145)

Interpretation

Marginal note:Definitions — Regulations

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

  Act

  Act means the Cannabis Act. (Loi)

  approved cultivar

  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

  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

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

  customs office

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

  customs officer

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

  export permit

  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

  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

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

  import permit

  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

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

  partnership

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

  pedigreed status

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

  plant breeder

  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

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

  seed

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

  THC

  THC means delta-9-tetrahydrocannabinol. (THC)

  variety

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

• Marginal note: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.

• Marginal note: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

Marginal note: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”.

• Marginal note: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.

• Marginal note:Definition — derivative

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

Licence

Marginal note: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.

• Marginal note: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.

• Marginal note: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.

• Marginal note: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).

Marginal note: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.

Marginal note: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.

Marginal note: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.

• Marginal note: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.

• Marginal note: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.

• Marginal note: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.

Marginal note: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.

• Marginal note:Exception

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