Commercial Production of Industrial Hemp

Act: Controlled Drugs and Substances Act, 1996, c. 19.
Regulation: Industrial Hemp Regulations, SOR/98-156

To Whom Does This Apply?

The Industrial Hemp Regulations control the activities relating to importation, exportation, possession, production, sale, provision, transport, sending, delivering of industrial hemp.

Summary

The commercial production (including cultivation) of industrial hemp is now permitted in Canada, under licences and authorizations, issued by Health Canada.

Industrial Hemp usually refers to plants and plant parts of approved varieties of the Cannabis plant that have a low level of THC (delta-9 tetrahydrocannabinol) in the leaves and flowering heads. These varieties are generally cultivated for fibre and oil. Industrial hemp should not be confused with varieties of Cannabis with a high content of THC, the dried foliage and flowering heads of which are more often referred to as marihuana. The psychoactive ingredient in marihuana is THC.  

Internationally, Cannabis is regulated by the United Nation's Single Convention on Narcotic Drugs. Canada has signed and ratified this Convention. The Controlled Drugs and Substances Act (CDSA) came into force effective May 14, 1997. The Regulations pursuant to the CDSA permit the commercial cultivation of industrial hemp in Canada.

The Regulations define industrial hemp as the plants and plant parts of the Cannabis plant, whose leaves and flowering heads do not contain more than 0.3 percent THC. It includes derivatives of the seeds such as oil and seedcake and products made from derivatives. It does not include non-viable Cannabis seed, but it includes its derivatives.

It also does not include the mature stalks or the fibre derived from those stalks. This means that such fibre or the products made from the mature cannabis stalk may be imported, treated and sold in Canada.

The Regulations consist of the following components:  

• Importers and exporters of industrial hemp, in the form of seed or viable grain, must be licensed. In addition to holding a licence they will also be required to obtain a permit for each shipment;
• The importer must ensure that shipments of viable grain are accompanied by foreign certification. A list will be published by Health Canada indicating which countries are designated as having equivalent controls on the production of viable grain. Viable grain may only be imported from listed countries. This will ensure that viable grain imported will not produce a plant containing more than 0.3 percent THC in the case that it is illicitly used as seed for propagation;
• Seed growers will be restricted to a 0.4 hectare minimum plot size and will be required to demonstrate current membership in the Canadian Seed Growers' Association as part of their licence application. Seed growers will be required to provide the number of hectares grown in the previous two years as part of their licence application;
• Plant breeders are not restricted to minimum plot sizes. Persons applying for a licence as a plant breeder must be registered with the Canadian Seed Growers' Association and may only cultivate industrial hemp under this regulatory framework. The pedigreed seed restriction which applies to growers beginning in the year 2000 does not apply to plant breeders nor does the limitation to the List of Approved Cultivars;
• Growers for fibre or viable grain require a licence before they can purchase seeds from a distributor or cultivate industrial hemp. Growers of fibre or grain must have a minimum of 4 hectares or 10 acres under cultivation, and are required to provide the number of hectares grown in the previous two years as part of their licence application;
• Only approved varieties of industrial hemp, as listed on Health Canada's List of Approved Cultivars may be planted. Commencing January 1, 2000, only pedigreed seeds of approved varieties may be planted. Growers are required to identify their fields, and maintain records of production and distribution;
• Licences and audit trails are also required for processing activities, such as pressing seeds into oil. All parties licensed or authorized are required to identify a person resident in Canada who will be responsible for the licensed activities;
• To obtain a licence or authorization for any activity relating to industriel hemp, applicants are required to produce a police criminal record check for designated drug offenses;
• Derivatives of seed or viable grain, such as oil and seed cake, are exempted from the Regulations if there is evidence that the derivatives contain no more than 10 micrograms of delta-9-tetrahydrocannabinol per gram and carry appropriate labelling statements. Products made from derivatives of seed or viable grain are exempted from further regulation if there is evidence that each lot or batch contains no more than 10 micrograms of delta-9-tetrahydrocannabinol per gram and the lot is labelled as required by the Regulations;
• Importers and exporters of derivatives are required to provide proof with each shipment that the shipment contains no more than 10 micrograms of delta-9-tetrahydrocannabinol per gram for each lot to ensure that the product is below the limit. Similarly, products made from the derivatives of seed or viable grain must be accompanied with evidence that each shipment contains no more than 10 micrograms of delta-9-tetrahydrocannabinol per gram;
• No person is permitted to import or export a derivative or a product produced from a derivative that contains more than 10 micrograms of delta-9-tetrahydrocannabinol per gram;
• No person is permitted to import or sell whole plants, including sprouts or the leaves, flowers or bracts of industrial hemp; or import, sell, or produce any derivative or any product made from a derivative of the above;
• All who have been licensed to cultivate industrial hemp must ensure their crop is sampled for THC content as described in the Industrial Hemp Technical Manual;
• Authorizations are required for possession, sending, delivery and transportation, when products are transported outside the direction or control of a licence holder, or for possession for the purpose of testing for viability; or for those engaged in sampling activities;
• No person shall advertise to imply that industrial hemp, its derivatives or products are psychoactive;
• Testing for the level of THC in leaves or in derivatives must be done by a competent laboratory according to standards defined by Health Canada;

Health Canada will continue to issue licences for approved research studies related to the cultivation of hemp for industrial purposes.

Application Forms and relevant Guidance Documents aimed at expediting the review of licences and authorizations for activities pertaining to industrial hemp and also for research licences are available. For more information or to obtain copies of these documents, please contact the industrial hemp inquiries line at (613) 954-6524.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
Office of Controlled Substances
Health Canada
A.L. 3503D
123 Slater Street
Ottawa, Ontario  K1A 0K9
Telephone: 613-952-2131
Fax: 613-941-4760
Toll-free (information): 1-866-225-0709
TTY Toll-free (hearing impaired): 1-800-267-1245
E-mail: CSD_BDS@hc-sc.gc.ca
Web site: http://www.hc-sc.gc.ca/index_e.html