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Cannabis Fees Order (SOR/2018-198)

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Regulations are current to 2020-01-27 and last amended on 2020-01-22. Previous Versions

Cannabis Fees Order

SOR/2018-198

CANNABIS ACT

Registration 2018-10-01

Cannabis Fees Order

Whereas, pursuant to section 143 of the Cannabis ActFootnote a, the Minister of Health has consulted with any persons that the Minister considers to be interested in the matter;

The Minister of Health, pursuant to subsection 142(1) of the Cannabis ActFootnote a, makes the annexed Cannabis Fees Order.

Ottawa, September 28, 2018

Ginette C. Petitpas Taylor
Minister of Health

Marginal note:Definitions

 The following definitions apply in this Order.

Act

Act means the Cannabis Act. (Loi)

cannabis drug licence

cannabis drug licence means a licence referred to in paragraph 8(1)(f) of the Cannabis Regulations. (licence relative aux drogues contenant du cannabis)

cannabis revenue

cannabis revenue means the amount by which the amount received from the sale of cannabis exceeds the amount paid for the purchase of cannabis from the holder of a licence for micro-cultivation, a licence for standard cultivation, a licence for a nursery, a licence for micro-processing, a licence for standard processing or a licence for sale for medical purposes. (recettes tirées de la vente de cannabis)

client

client has the same meaning as in subsection 1(2) of the Cannabis Regulations. (client)

export permit

export permit has the same meaning as in subsection 1(2) of the Cannabis Regulations. (permis d’exportation)

fiscal year

fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year. (exercice)

import permit

import permit has the same meaning as in subsection 1(2) of the Cannabis Regulations. (permis d’importation)

licence for analytical testing

licence for analytical testing means a licence referred to in paragraph 8(1)(c) of the Cannabis Regulations. (licence d’essais analytiques)

licence for a nursery

licence for a nursery means a licence referred to in paragraph 8(3)(c) of the Cannabis Regulations. (licence de culture en pépinière)

licence for micro-cultivation

licence for micro-cultivation means a licence referred to in paragraph 8(3)(a) of the Cannabis Regulations. (licence de micro-culture)

licence for micro-processing

licence for micro-processing means a licence referred to in paragraph 8(4)(a) of the Cannabis Regulations. (licence de micro-transformation)

licence for research

licence for research means a licence referred to in paragraph 8(1)(e) of the Cannabis Regulations. (licence de recherche)

licence for sale for medical purposes

licence for sale for medical purposes means a licence referred to in subsection 8(5) of the Cannabis Regulations. (licence de vente à des fins médicales)

licence for standard cultivation

licence for standard cultivation means a licence referred to in paragraph 8(3)(b) of the Cannabis Regulations. (licence de culture standard)

licence for standard processing

licence for standard processing means a licence referred to in paragraph 8(4)(b) of the Cannabis Regulations. (licence de transformation standard)

named responsible adult

named responsible adult has the same meaning as in subsection 264(1) of the Cannabis Regulations. (responsable nommé)

site

site has the same meaning as in subsection 1(2) of the Cannabis Regulations. (lieu)

Marginal note:Annual adjustment of fees

 The fees set out in sections 3 to 5 are to be adjusted in each fiscal year on April 1 by the percentage change over 12 months in the April All-items Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act, for the previous fiscal year and rounded to the next highest dollar.

Marginal note:Screening of an application for one licence

  •  (1) The fee for the screening by the Minister of an application for the issuance of only one licence set out in column 1 of Schedule 1 is set out in column 2 and is payable within 30 days of submitting the application.

  • Marginal note:Screening of an application for more than one licence

    (2) The fee for the screening by the Minister of an application for the issuance of more than one licence set out in column 1 of Schedule 1 is the following and is payable within 30 days of submitting the application:

    • (a) in the case where one of the licences referred to in the application is a licence for sale for medical purposes, the lowest applicable fee set out in column 2 of Schedule 1 with respect to the licences referred to in the application; or

    • (b) in all other cases, the highest applicable fee set out in column 2 of Schedule 1 with respect to the licences referred to in the application.

Marginal note:Application for security clearance

 The fee for the consideration by the Minister of an application with respect to a security clearance referred to in section 67 of the Act is $1,654 and is payable within 90 days of submitting the application.

Marginal note:Application for import or export permit

 The fee for the consideration by the Minister of an application for an import permit or an export permit is $610 and is payable within 30 days of submitting the application.

Marginal note:Exemptions — analytical testing, research, etc.

 Sections 4 and 5 do not apply with respect to an application for a security clearance, import permit or export permit with respect to a licence within the meaning of the Industrial Hemp Regulations, a licence for analytical testing, a licence for research or a cannabis drug licence.

Marginal note:Annual fee — entry year

  •  (1) The holder of one or more licences set out in column 1 of Schedule 2 with respect to the same site must, not later than 60 days after the earliest effective date of those licences, pay the following fee:

    • (a) if they hold only one of the following licences,

      • (i) $2,500, for a licence for micro-cultivation, a licence for a nursery or a licence for micro-processing, or

      • (ii) $23,000, for a licence for standard cultivation, a licence for standard processing or a licence for sale for medical purposes; or

    • (b) if the person holds more than one licence,

      • (i) in the case where one of the licences is a licence for sale for medical purposes, the lowest applicable fee referred to in subparagraph (a)(i) or (ii) with respect to the licences that the person holds, or

      • (ii) in all other cases, the highest applicable fee referred to in subparagraph (a)(i) or (ii) with respect to the licences that the person holds.

  • Marginal note:Annual fee — first fiscal year

    (2) The holder must, with respect to the fiscal year following the fiscal year during which the licence with the earliest effective date was issued for the same site, pay the following fee, not later than September 30 of that year,

    • (a) if the person holds only one licence set out in column 1 of Schedule 2 with respect to the site, the fee determined in accordance with column 2 of Schedule 2 with respect to the licence, based on the pro-rated cannabis revenue for the fiscal year during which the licence with the earliest effective date was issued, or

    • (b) if the person holds more than one licence set out in column 1 of Schedule 2 with respect to the site,

      • (i) in the case where one of the licences is a licence for sale for medical purposes, the lowest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the pro-rated cannabis revenue for the fiscal year during which the licence with the earliest effective date was issued, or

      • (ii) in all other cases, the highest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the pro-rated cannabis revenue for the fiscal year during which the licence with the earliest effective date was issued.

  • Marginal note:Statement of revenue and annual fee — subsequent years

    (3) The holder must, for the same site and with respect to each fiscal year subsequent to the fiscal year to which subsection (2) applies, pay the following fee, not later than September 30 of the subsequent year:

    • (a) if the person holds only one licence set out in column 1 of Schedule 2 with respect to the site, the fee determined in accordance with column 2 of Schedule 2 for the licence, based on the cannabis revenue set out in the statement of cannabis revenue referred to in subsection 8(1) for the fiscal year, or

    • (b) if the person holds more than one licence set out in column 1 of Schedule 2 with respect to the site,

      • (i) in the case where one of the licences is a licence for sale for medical purposes, the lowest applicable fee determined in accordance with column 2 of Schedule 2, based on the cannabis revenue set out in the statement of cannabis revenue, with respect to the licences that the person holds, or

      • (ii) in all other cases, the highest applicable fee determined in accordance with column 2 of Schedule 2, based on the cannabis revenue set out in the statement of cannabis revenue, with respect to the licences that the person holds.

  • Marginal note:Interpretation

    (4) For the purpose of this section,

    • (a) pro-rated cannabis revenue means the cannabis revenue set out in the statement of cannabis revenue referred to in subsection 8(1) for a fiscal year, multiplied by the number of days in the fiscal year divided by the number of days during which the licence was effective during the fiscal year.

    • (b) the effective date of a licence that has been continued in force under subsection 158(1) or 159 (1) of the Act is deemed to be October 17, 2018;

Marginal note:Statement of cannabis revenue

  •  (1) The holder of one or more licences set out in column 1 of Schedule 2 with respect to the same site must, no later than April 30 of a fiscal year, submit to the Minister a statement of the cannabis revenue for the preceding fiscal year with respect to those licences, including the amount received from the sale of cannabis and the amount paid for the purchase of cannabis that were used to determine the cannabis revenue.

  • Marginal note:Reconciliation

    (2) The holder must pay the following fee, not later than September 30 following the fiscal year during which the licence with the earliest effective date was issued with respect to the same site, if the amount is positive:

    • (a) if the person holds only one licence set out in column 1 of Schedule 2 with respect to the site, an amount equal to the difference between the fee determined in accordance with column 2 of Schedule 2 with respect to the licence, based on the cannabis revenue set out in the statement of cannabis revenue for the fiscal year during which the licence was issued, for the applicable licence set out in column 1 and the fee paid under paragraph 7(1)(a); or

    • (b) if the person holds more than one licence set out in column 1 of Schedule 2 with respect to the site,

      • (i) in the case where one of the licences is a licence for sale for medical purposes, an amount equal to the difference between the lowest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the cannabis revenue set out in the statement of cannabis revenue for the fiscal year during which the licence with the earliest effective date was issued and the fee paid under subparagraph 7(1)(b)(i).

      • (ii) in all other cases, an amount equal to the difference between the highest applicable fee determined in accordance with column 2 of Schedule 2 with respect to the licences that the person holds, based on the cannabis revenue set out in the statement and the fee paid under subparagraph 7(1)(b)(ii).

Marginal note:Accounting standard for statements

 Statements that are submitted to the Minister for the purposes of this Order must be prepared in writing in accordance with the generally accepted accounting principles established by the Accounting Standards Board, the primary source of which is, in Canada, the CPA Canada Handbook — Accounting, and must be accompanied by a written document signed by the person responsible for the financial affairs of the holder of the licence certifying that the records were prepared in accordance with the standards.

Marginal note:Exemptions — sale for medical purposes

  •  (1) The holder of a licence for sale for medical purposes and any other licence set out in column 1 of Schedule 2 , if any, is not required to pay the applicable fee referred to in subsection 7(1) and paragraphs 7(2)(a) and (b) and (3)(a) and (b) and subsection 8(2) for a fiscal year and for the same site if

    • (a) all the cannabis sold during the applicable fiscal year under those licences is sold in Canada to a person that is a client or a named responsible adult or to which an exemption has been granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that is sold;

    • (b) the holder signs and submits to the Minister a written document indicating that the holder intends to sell all cannabis during the applicable fiscal year only in Canada to a person that is a client or a named responsible adult or to which an exemption has been granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that is sold

      • (i) in the case of the fee referred to in subsection 7(1), within 30 days after the earliest effective date of the licences, and

      • (ii) in any other case, not later than April 30 of every fiscal year; and

    • (c) the holder submits to the Minister, not later than April 30 following the applicable fiscal year, a statement of the cannabis revenue for the applicable fiscal year with respect to those licences, including the amount received from the sale of cannabis in Canada and the amount paid for the purchase of cannabis that were used to determine the cannabis revenue, accompanied by a written document confirming that all those sales were made to a person that was, at the time of the sale, a client or a named responsible adult or to which an exemption had been, at the time of the sale, granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that was sold.

  • Marginal note:Exemption — separate sites

    (2) The holder of a licence for sale for medical purposes with respect to a site and any other licence set out in column 1 of Schedule 2 with respect to another site is not required to pay a fee referred to in subsection 7(1) and paragraphs 7(2)(a) and (b) and (3)(a) and (b) and subsection 8(2) for a fiscal year and for any of the licences that the person holds if

    • (a) the holder does not hold any other licence set out in column 1 with respect to the site referred to in the licence for sale for medical purposes; and

    • (b) the holder meets the conditions set out in paragraphs (1)(a) to (c).

  • SOR/2020-8, s. 1

Marginal note:Retention of documents and information

 The holder of a licence set out in column 1 of Schedule 2 must retain the following for not less than seven years after the day on which they are prepared and in a manner that will enable an audit to be made in a timely manner:

  • (a) documents or information stating the amount received from the sale of cannabis, the amount paid for the purchase of cannabis and the name of the person from which cannabis was purchased; and

  • (b) if section 10 applies to the holder, documents or information confirming that all sales of cannabis under the licence were made in Canada to a person that was, at the time of the sale, a client or a named responsible adult or to which an exemption had been, at the time of the sale, granted under section 140 of the Act for a medical purpose and in relation to the cannabis or class of cannabis that was sold.

  • SOR/2020-8, s. 2(E)

Marginal note:Coming into Force

 This Order comes into force on October 17, 2018.

SCHEDULE 1(Section 3)

Licence Application Screening Fee

ItemColumn 1Column 2
LicenceFee ($)
1licence for micro-cultivation1,638
2licence for standard cultivation3,277
3licence for a nursery1,638
4licence for micro-processing1,638
5licence for standard processing3,277
6licence for sale for medical purposes3,277

SCHEDULE 2(Section 7, 8, 10 and 11)

Annual Fee

ItemColumn 1Column 2
LicenceFee
1licence for micro-cultivation
  • (a) If the cannabis revenue is $1 million or less, the greater of 1% of the cannabis revenue, and $2,500; or

  • (b) if the cannabis revenue is greater than $1 million, the maximum amount determinable under paragraph (a) plus 2.3% of the amount by which the cannabis revenue exceeds $1 million.

2licence for standard cultivationThe greater of 2.3% of the cannabis revenue and $23,000.
3licence for a nursery
  • (a) If the cannabis revenue is $1 million or less, the greater of 1% of the cannabis revenue, and $2,500; or

  • (b) if the cannabis revenue is greater than $1 million, the maximum amount determinable under paragraph (a) plus 2.3% of the amount by which the cannabis revenue exceeds $1 million.

4licence for micro-processing
  • (a) If the cannabis revenue is $1 million or less, the greater of 1% of the cannabis revenue, and $2,500; or

  • (b) if the cannabis revenue is greater than $1 million, the maximum amount determinable under paragraph (a) plus 2.3% of the amount by which the cannabis revenue exceeds $1 million.

5licence for standard processingThe greater of 2.3% of the cannabis revenue and $23,000.
6licence for sale for medical purposesThe greater of 2.3% of the cannabis revenue and $23,000.
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