Cannabis Tracking System Order (SOR/2019-202)

The Minister of Border Security and Organized Crime Reduction, pursuant to subsection 82(1) of the Cannabis ActFootnote ^a, makes the annexed Cannabis Tracking System Order.

• Return to footnote ^aS.C. 2018, c. 16

Ottawa, May 31, 2019

Le ministre de la Sécurité frontalière et de la Réduction du crime organisé, William Sterling Blair Minister of Border Security and Organized Crime Reduction

Interpretation

Marginal note:Definitions

• 1 (1) The following definitions apply in this Order.

  Act

  Act means the Cannabis Act. (Loi)

  book value

  book value means the value of an asset according to its balance sheet account balance. (valeur comptable )

  cannabis extract

  cannabis extract has the same meaning as in subsection 1(1) of the Regulations. (extrait de cannabis)

  cannabis product

  cannabis product has the same meaning as in subsection 1(2) of the Regulations. (produit du cannabis)

  edible cannabis

  edible cannabis has the same meaning as in subsection 1(1) of the Regulations. (cannabis comestible)

  licence for analytical testing

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

  licence for cultivation

  licence for cultivation means a licence referred to in paragraph 8(1)(a) of the Regulations. (licence de culture)

  licence for processing

  licence for processing means a licence referred to in paragraph 8(1)(b) of the Regulations. (licence de transformation)

  licence for research

  licence for research means a licence referred to in paragraph 8(1)(e) of the 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 Regulations. (licence de vente à des fins médicales)

  public body

  public body includes a Crown corporation. (organisme public)

  Regulations

  Regulations means the Cannabis Regulations. (Règlement)

  site

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

  unpackaged cannabis

  unpackaged cannabis means cannabis other than cannabis contained in a cannabis product. (cannabis non emballé)

• Marginal note:Interpretation

  (2) For the purposes of this Order,

  • (a) cannabis contained in a cannabis product includes cannabis that is a cannabis product; and

  • (b) a reference to the sale or distribution of cannabis — including cannabis products — does not include

    • (i) the return of cannabis,

    • (ii) the sale or distribution of cannabis for the purposes of destruction, or

    • (iii) the import or export of cannabis.

Federal Licences

Marginal note:Information to be provided

• 2 (1) A holder of a licence for cultivation, a licence for processing or a licence for sale for medical purposes that authorizes the possession of cannabis must, no later than the 15th day of each month, provide the Minister with the following information, as applicable, in respect of the site specified in the licence:

  • (a) the number of cannabis products that formed part of the inventory on the first day of the previous month;

  • (b) the quantity of unpackaged cannabis that formed part of the inventory on the first day of the previous month;

  • (c) the number of cannabis products that were added to the inventory during the previous month by virtue of

    • (i) the sale or distribution of cannabis products to the holder,

    • (ii) the packaging and labelling of cannabis, or a cannabis accessory containing cannabis, by the holder for sale to consumers at the retail level,

    • (iii) the return of cannabis products to the holder, or

    • (iv) any other reason;

  • (d) the quantity of unpackaged cannabis that was added to the inventory during the previous month by virtue of

    • (i) being sold or distributed to the holder,

    • (ii) being produced from other unpackaged cannabis,

    • (iii) being imported,

    • (iv) being returned to the holder, or

    • (v) any other reason;

  • (e) the number of cannabis products that ceased to form part of the inventory during the previous month by virtue of

    • (i) the sale or distribution of cannabis products,

    • (ii) the destruction of cannabis products,

    • (iii) being lost or stolen in circumstances that require notice to be provided under paragraph 246(1)(b) of the Regulations,

    • (iv) the return of cannabis products by the holder, or

    • (v) any other reason;

  • (f) the number and book value of cannabis products that ceased to form part of the inventory during the previous month by virtue of

    • (i) the retail sale of cannabis products to consumers, other than as a result of a purchase order referred to in section 289 of the Regulations,

    • (ii) the sale of cannabis products as a result of a purchase order referred to in section 289 of the Regulations, and

    • (iii) the sale or distribution of cannabis products to a person that is authorized under a provincial Act referred to in subsection 69(1) of the Act to sell cannabis, and

    • (iv) the sale or distribution of cannabis products to another holder of a licence for cultivation, a licence for processing or a licence for sale for medical purposes;

  • (g) the quantity of unpackaged cannabis that ceased to form part of the inventory during the previous month by virtue of

    • (i) being sold or distributed by the holder to another holder of a licence for cultivation, a licence for processing, a licence for sale for medical purposes, a licence for analytical testing or a licence for research,

    • (ii) being used to produce other unpackaged cannabis,

    • (iii) being packaged and labelled, either alone or within a cannabis accessory, by the holder for sale to consumers at the retail level,

    • (iv) being destroyed,

    • (v) being lost due to drying or other normally accepted business activities,

    • (vi) being lost or stolen in circumstances that require notice to be provided under paragraph 246(1)(b) of the Regulations,

    • (vii) being returned by the holder, or

    • (viii) any other reason;

  • (h) the quantity of unpackaged cannabis used in the production of cannabis of a class set out in any of items 8 to 14 of Schedule 2, in relation to each class;

  • (i) the quantity and book value of unpackaged cannabis that ceased to form part of the inventory during the previous month by virtue of

    • (i) being sold or distributed to another holder of a licence for cultivation, a licence for processing or a licence for sale for medical purposes, or

    • (ii) being exported;

  • (j) the number and book value of cannabis products, and the quantity of cannabis contained in those cannabis products, that formed part of the inventory on the last day of the previous month; and

  • (k) the quantity and book value of unpackaged cannabis that formed part of the inventory on the last day of the previous month.

• Marginal note:Number, quantity and book value by class

  (2) In respect of cannabis products,

  • (a) the number of cannabis products referred to in paragraphs (1)(a), (c), (e), (f) and (j) must be provided for each class specified in column 1 of Schedule 1;

  • (b) the quantity of cannabis referred to in paragraph (1)(j) must be provided for each class specified in column 1 of Schedule 1 and expressed in the applicable unit of measurement specified in column 2; and

  • (c) the book value of cannabis products referred to in paragraph (1)(j) must be provided for each class specified in column 1 of Schedule 1 and expressed in Canadian dollars, net of sales tax.

• Marginal note:Quantity and book value by class

  (3) In respect of unpackaged cannabis,

  • (a) the quantities of unpackaged cannabis referred to in paragraphs (1)(b), (d), (g) and (k) must be provided for each class of unpackaged cannabis specified in column 1 of Schedule 2 and expressed in the applicable unit of measurement specified in column 2;

  • (b) the quantity of unpackaged cannabis referred to in paragraph (1)(i) must be provided for each class of unpackaged cannabis specified in items 1, 2, 4 and 5 and 8 to 14 of column 1 of Schedule 2 and expressed in the applicable unit of measurement specified in column 2; and

  • (c) the book value of unpackaged cannabis referred to in paragraphs (1)(i) and (k) must be provided for each applicable class of unpackaged cannabis and expressed in Canadian dollars, net of sales tax.

• Marginal note:Number and book value by province and class

  (4) In respect of the cannabis products referred to in paragraph (1)(f),

  • (a) the number of cannabis products must be provided for each province in which the persons to which the cannabis products are sold or distributed are located and for each class specified in column 1 of Schedule 1; and

  • (b) the book value must be provided for each province in which the persons to which the cannabis products are sold or distributed are located and for each class specified in column 1 of Schedule 1 and expressed in Canadian dollars, net of sales tax.

• Marginal note:Quantity and book value by province and class

  (5) In respect of the unpackaged cannabis referred to in paragraph (1)(i),

  • (a) the quantity must be provided for each province in which the persons to which the unpackaged cannabis is sold are located and for each class specified in column 1 of Schedule 2;

  • (b) the quantity must be expressed in the applicable unit of measurement specified in column 2 of Schedule 2; and

  • (c) the book value must be provided for each province in which the persons to which the unpackaged cannabis is sold are located and for each class specified in column 1 of Schedule 2 and expressed in Canadian dollars, net of sales tax.

• Marginal note:Cessation of activities

  (6) A holder of a licence for cultivation, a licence for processing or a licence for sale for medical purposes that ceases to conduct all the activities authorized by the licence must, within 15 days after the day on which the activities cease, provide any information that has yet to be provided under subsection (1) in respect of the previous month, as well as information in respect of the month in which the activities cease.

Marginal note:Additional information

• 3 (1) The information that is provided under section 2 must be accompanied by the following information:

  • (a) the licence holder’s licence number;

  • (b) the month and calendar year to which the information relates; and

  • (c) in the case of information that is provided by a holder of a licence for cultivation or a licence for processing, the total surface area that is authorized by the licence, in square metres, of all buildings on the site;

  • (d) in the case of information that is provided by a holder of a licence for cultivation, the total surface area that is used for cultivating, propagating or harvesting cannabis,

    • (i) in the case of indoor cultivation, in square metres, and

    • (ii) in the case of outdoor cultivation, in hectares; and

  • (e) in the case of information that is provided by a holder of a licence for processing, the total surface area, in square metres, that is used to produce cannabis.

• Marginal note:Surface area — calculation

  (2) If the surface area referred to in paragraph (1)(d) consists of multiple surfaces, such as surfaces arranged above one another, the area of each surface must be included in the calculation of the total surface area.