Excise Duty Memorandum

March 2025

This memorandum cancels and replaces Notice EDN52, Obtaining and renewing a cannabis licence.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. In addition, all references to the "Regulations" are to the Regulations Respecting Excise Licences and Registrations. The information in this publication does not replace the law found in the Excise Act, 2001 and its regulations.

If this information does not completely address your particular situation, you may refer to the Excise Act, 2001 or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact information – Excise and Specialty Tax Directorate.

On this page

• Requirement to obtain a cannabis licence
  • Exceptions
• Eligibility for a licence
  • Individuals
  • Partnerships or unincorporated bodies composed of individuals
  • Partnerships or unincorporated bodies composed of corporations
  • Partnerships or unincorporated bodies composed of individuals and corporations
  • Corporations
• Applying for a licence
  • New licence
  • Licence renewal
  • More than one location
  • Email notification
  • Information on individuals, partners, directors, officers, or shareholders
  • Certification
• Licensing conditions
  • Financial security
    • Amount of financial security required
    • Acceptable forms of financial security
    • Maintaining financial security
    • Increase in financial security
    • Decrease in financial security
  • Facilities, personnel, and equipment
• Effect and duration of licence
• Registration for the cannabis stamping regime
• Authorized representative
• Notification of changes
  • Name change
  • Change of legal entity
• Refusal to issue or renew a licence
• Suspension of a licence
  • Reason
  • Notice of suspension and recourse
  • Reinstatement
• Cancellation of a licence
  • Reason
  • Notice of cancellation and recourse
• Responsibilities of cannabis licensees
  • Keeping records
  • Filing returns
    • Locations filing separate returns
• Offences and penalties

Requirement to obtain a cannabis licence

1. Unless otherwise specified in the Excise Act, 2001, every person that wishes to cultivate, produce, or package cannabis products must obtain a licence under that Act.

2. Produce, in respect of a cannabis product, has the same meaning as in subsection 2(1) of the Cannabis Act, which defines the term to mean obtaining cannabis by any method or process, including by manufacturing, synthesis, altering its chemical or physical properties by any means, or cultivating, propagating, or harvesting it or any living thing from which it may be extracted or otherwise obtained. For the purposes of the Excise Act, 2001, the definition of produce in section 2 of that Act also includes packaging the cannabis product.

3. The Excise Act, 2001 prohibits any person from cultivating, producing, packaging, or possessing non-duty-paid cannabis products without a cannabis licence except under the specific circumstances listed below. Persons that cultivate, produce, package, or possess non-duty-paid cannabis products without a licence may be subject to fines or imprisonment or both. For more information, refer to the "Offences and penalties" section of this memorandum.

Exceptions

4. Under section 158.01, a cannabis licence is not required for any of the following:

a. cannabis products that are produced in Canada by an individual for their personal use and in accordance with the Cannabis Act

b. cannabis products that are produced in Canada by an individual, under the Cannabis Act, for the medical purposes of the individual

c. cannabis products that are produced in Canada by an individual who, under the Cannabis Act, is a designated person authorized to produce cannabis products in Canada for the medical purposes of another individual

d. cannabis products that are in the possession of a holder of a research or cannabis drug licence under the Cannabis Regulations to the extent that the licence holder uses those cannabis products in activities that are allowed under the licence issued

5. Personal use, in relation to the use of a good (such as a cannabis product) by an individual, is defined in section 2 to mean the use of the good by the individual or by others at the individual's expense. It does not include the sale or other commercial use of the good.

6. In addition, under subsection 158.02(3), a cannabis licence is not required for industrial hemp by-products produced by an industrial hemp grower. An industrial hemp grower that is only selling the unpackaged flowering material to the holder of a cannabis licence does not require a cannabis licence from the Canada Revenue Agency (CRA). However, the activity of processing hemp flowering material does require a licence from the CRA.

Eligibility for a licence

7. An applicant must meet all applicable eligibility requirements to obtain a licence under the Excise Act, 2001.

8. Under paragraphs 2(2)(a) and (b) of the Regulations, which apply to every applicant, a licence will only be issued if the applicant:

• is not the subject of a receivership in respect of their debts
• has not failed in the five years immediately before the date of the licence application to comply with any Act of Parliament (other than the Excise Act, 2001) or of a provincial or territorial legislature that deals with the taxation or control of alcohol, cannabis, tobacco, or vaping products, or any regulations made under that Act
• has not acted to defraud His Majesty in the five years immediately before the date of the licence application

9. In addition to these general requirements, an applicant must meet other specific requirements, depending on whether the applicant is an individual, a partnership, an unincorporated body, or a corporation.

Individuals

10. If the applicant is an individual, paragraph 2(2)(c) of the Regulations requires that the individual both:

• be at least 18 years of age
• have sufficient financial resources to conduct their business in a responsible manner

Partnerships or unincorporated bodies composed of individuals

11. If the applicant is a partnership or unincorporated body composed only of individuals, subparagraph 2(2)(d)(i) of the Regulations requires that:

• each of the individuals be at least 18 years of age
• the partnership or unincorporated body have sufficient financial resources to conduct its business in a responsible manner

Partnerships or unincorporated bodies composed of corporations

12. If the applicant is a partnership or unincorporated body composed only of corporations, subparagraph 2(2)(d)(ii) of the Regulations requires that each of the corporations have sufficient financial resources to conduct its business in a responsible manner.

Partnerships or unincorporated bodies composed of individuals and corporations

13. If the applicant is a partnership or unincorporated body composed of individuals and corporations, subparagraph 2(2)(d)(iii) of the Regulations requires that:

• each of the individuals be at least 18 years of age
• the partnership or unincorporated body and each of the corporations have sufficient financial resources to conduct its business in a responsible manner

Corporations

14. If the applicant is a corporation, paragraph 2(2)(e) of the Regulations requires that the corporation have sufficient financial resources to conduct its business in a responsible manner.

Applying for a licence

New licence

15. Under subsection 14(1.2) of the Excise Act, 2001, a cannabis licence issued to a person by the CRA only takes effect when a licence is issued to that person by Health Canada under subsection 62(1) of the Cannabis Act. As such, the person should apply for a cannabis licence from the CRA at the same time that they apply for a licence from Health Canada. For information on licences from Health Canada, go to canada.ca/cannabis.

16. Under section 2 of the Regulations, every person that wishes to obtain a cannabis licence from the CRA must complete Form L300, Cannabis Licence Application, and submit it to their regional excise office along with a business plan that details:

• each business location and the activities to be undertaken at each location
• the projected customer base
• the projected quantities of dried cannabis to be packaged and sold in the first 12 months after a cannabis licence is received from the CRA, if applicable
• the projected quantities of milligrams of total THC to be packaged and sold in the first 12 months after a cannabis licence is received from the CRA, if applicable
• the total number of packages of cannabis products to be sold in the first 12 months after a cannabis licence is received from the CRA, if applicable

17. There are no fees related to the application for or issuing of a CRA cannabis licence.

Licence renewal

18. Cannabis licences are not renewed automatically. A cannabis licensee that wishes to renew their licence must complete Form L300, ticking the "Renewal" box to indicate that the application relates to the renewal of an existing licence. The licensee must submit the completed form to their regional excise office at least 30 days before the expiry date.

19. The licensee must continue to meet the regulatory requirements described in paragraphs 8 to 14 of this memorandum to be eligible to renew their licence.

More than one location

20. A cannabis licence authorizes a person to carry on their activities at a single location or at several locations. Under subsection 2(1) of the Regulations, an applicant that has more than one business location must complete Form L300SCHA, Schedule A – Other Business Location(s), listing all the locations requiring authorization for the purposes of the licence, and submit it with Form L300.

Email notification

21. An applicant that is registered for My Business Account and would like to register to receive CRA mail through this account should provide their email address on Form L300.

22. For more information on the digital services that are available to cannabis licensees, including email notifications and My Business Account, go to Digital services.

Information on individuals, partners, directors, officers, or shareholders

23. An applicant that requires more space to provide information on individuals, partners, directors, officers, or shareholders that hold more than 20% shares should also complete Form L300SCHB, Schedule B – Information Relating to Individuals, Partners, Directors, Officers or Shareholders, and submit it with Form L300.

Certification

24. An authorized person must sign the completed Form L300. If the applicant is a corporation or an association, or an organization that has duly elected or appointed officers, the president, the vice-president, the secretary, the treasurer, or other equivalent officers qualify as authorized persons. If the applicant is a sole proprietorship or partnership, the proprietor or a partner, respectively, must sign the application.

Licensing conditions

25. Subsection 23(3) provides that the activities that may be carried on under the licence, and the locations where these activities may be carried on, may be specified in the licence. In addition, the CRA may impose conditions that it considers to be appropriate on the carrying on of these activities.

26. Under section 24, a licensee must comply with the Excise Act, 2001 and its regulations when carrying on the activities specified under their licence.

Financial security

27. Under paragraph 23(3)(b), every person that submits an application for a cannabis licence or the renewal of a cannabis licence must provide financial security in an amount determined in accordance with the Regulations and in a form acceptable to the CRA. Financial security is a condition of licensing, and it must be posted before the CRA will issue a licence and maintained during the licensing period.

28. A new applicant for a cannabis licence under the Excise Act, 2001 must post financial security as soon as a licence has been issued to them under the Cannabis Act by Health Canada and not when they submit their application to the CRA. The CRA will not issue their licence until the applicant has posted the applicable financial security.

29. To be eligible for licence renewal, a cannabis licensee that wishes to renew their licence must provide any additional financial security that may be required when they submit their application to the CRA.

Amount of financial security required

30. For a cannabis licensee that is authorized to file quarterly returns, the amount of financial security must be sufficient to ensure payment of one-third of the total amount of all cannabis duty and additional cannabis duty payable by the cannabis licensee for a reporting period, per subparagraph 5(1)(c)(i) of the Regulations.

31. For any other cannabis licensee, the amount of financial security must be sufficient to ensure payment of the total amount of all cannabis duty and additional cannabis duty payable by the cannabis licensee for a reporting period, per subparagraph 5(1)(c)(ii) of the Regulations.

32. The total amount of all cannabis duty and additional cannabis duty payable refers to the net amount of duties indicated on the licensee's cannabis duty return after all deductions and refunds are claimed.

33. The minimum amount of financial security required is $5,000 and the maximum amount is $5 million per licence.

34. Subject to the minimum and maximum amounts, the amount of financial security to be provided by a new applicant that intends to package cannabis products is calculated by:

• multiplying the estimated number of grams of dried cannabis that will be sold into the duty-paid market in the first 12 months after a cannabis licence is received from the CRA by $1.00 per gram
• multiplying the estimated number of milligrams of total THC contained in the edible cannabis, cannabis extracts, and cannabis topicals that will be sold into the duty-paid market in the first 12 months after a cannabis licence is received from the CRA by $0.01
• adding those two amounts
• dividing the total by 12

35. Subject to the minimum and maximum amounts, the amount of financial security to be provided when an applicant that packages cannabis products applies to renew their cannabis licence is the average amount of cannabis duty and any additional cannabis duty in respect of a specified province payable for a calendar month in the previous 12 calendar months.

36. Applicants that will only be cultivating or producing cannabis products and not packaging them, must provide financial security in the amount of $5,000.

37. Anyone that needs help determining the correct amount of financial security to be provided to the CRA may contact their regional excise office.

Acceptable forms of financial security

38. Under subsection 5(2) of the Regulations, financial security must be provided in Canadian funds. The CRA will accept a certified cheque, a bank draft, a Canada Post money order, or an original surety bond issued by a company that is authorized by a Canadian federal, provincial, or territorial regulator to provide surety bonds within Canada. Refer to the Office of the Superintendent of Financial Institutions to identify a federally regulated property and casualty insurance company that lists surety as an authorized class of insurance, or to the relevant regulator for a province or territory.

39. A licensee that wishes to provide financial security using a surety bond can choose to complete and submit Form L302, Surety Bond for Cannabis.

Maintaining financial security

40. The provision of adequate financial security is a condition of licensing. Since section 4 of the Regulations states that a cannabis licence issued under the Excise Act, 2001 remains in effect for a maximum period of five years, provided that it is not suspended or cancelled before the expiry date, the licensee must ensure that the level of financial security provided remains sufficient for the term of the licence.

41. For a cannabis licensee that is authorized to file quarterly returns, the amount of financial security must be sufficient to ensure payment of one-third of the total amount of all cannabis duty and additional cannabis duty payable by the cannabis licensee for a reporting period, per subparagraph 5(1)(c)(i) of the Regulations.

42. For any other cannabis licensee, the amount of financial security must be sufficient to ensure payment of the total amount of all cannabis duty and additional cannabis duty payable by the cannabis licensee for a reporting period, per subparagraph 5(1)(c)(ii) of the Regulations.

43. The total amount of all cannabis duty and additional cannabis duty payable refers to the net amount of duties indicated on the licensee's cannabis duty return after all deductions and refunds are claimed.

44. The minimum amount of financial security required is $5,000 and the maximum amount is $5 million per licence.

45. Subject to the minimum and maximum amounts, the amount of financial security that must be maintained is equal to the average amount of cannabis duty and additional cannabis duty reported by a cannabis licensee over the prior 12-month period.

46. If a cannabis licensee has provided financial security in the form of a surety bond and there is a change in the licensee's legal entity (for example, where a proprietorship incorporates) or the surety bond is voided (for example, when the surety that issued the surety bond no longer operates in Canada), a new surety bond is required.

47. An original rider or endorsement to an existing surety bond is acceptable where there is a change in a cannabis licensee's name, the physical location of the licensee's premises, the amount of the surety bond, or the name of the surety.

48. The cannabis licence of a licensee that fails to maintain a sufficient level of financial security may be suspended or cancelled and the renewal of the licence may be denied.

Increase in financial security

49. If a cannabis licensee determines that the level of financial security has or may become inadequate, they must immediately contact their regional excise office to discuss the situation or to get help in determining the correct amount of financial security to be provided. Not maintaining sufficient financial security may result in the cancellation or non-renewal of a cannabis licence.

50. If it is determined that additional financial security is required, the licensee must provide the additional amount without delay.

51. A cannabis licensee may not be required to provide an additional amount of financial security if the CRA reviews the financial security requirements and determines that either of the following minimal changes applies:

• the amount of financial security required is $100,000 or less and the additional amount of financial security is less than 10% of that amount
• the amount of financial security required is more than $100,000 and the additional amount of financial security required is $10,000 or less

Decrease in financial security

52. If a decrease in the total amount of financial security is warranted at any time, a licensee may request in writing that the excess amount of security be returned. The excess amount of security will only be returned if any of the following applies:

• the amount of financial security required is $100,000 or less and the excess amount of financial security is greater than 10% of that amount
• the amount of financial security required is more than $100,000 and the excess amount of financial security is greater than $10,000
• the licensee does not have any excise duty arrears with the CRA to which the excess amount of financial security will be applied

Facilities, personnel, and equipment

53. Under section 13 of the Regulations, and as a condition of a licence under the Excise Act, 2001, all licensees must provide the following at each location listed in the licence:

• adequate space for the examination of goods or records by a CRA officer
• the equipment and personnel necessary to ensure that the goods or records to be examined are made available to the CRA officer
• the personnel necessary to provide the CRA officer with information about the operations, inventory system, and records of the licensee, for audit purposes

Effect and duration of licence

54. Once the CRA decides to issue a cannabis licence, the regional excise office will issue a cannabis licence approval letter that indicates the legal name of the entity that holds the licence, the complete mailing address, the locations authorized under the licence, and the effective and expiry dates of the licence. The licence is valid for a period of up to five years, provided that it is not suspended or cancelled before the expiry date.

55. The CRA may amend, suspend, cancel, or impose additional conditions on a cannabis licence at any time while it is in effect. For more information on the grounds for suspension or cancellation of a licence, refer to paragraphs 67 to 79 of this memorandum.

Registration for the cannabis stamping regime

56. In addition to being licensed under the Excise Act, 2001, a cannabis licensee that is required to affix cannabis excise stamps to packaged cannabis products must also register under the cannabis stamping regime with the CRA's Excise Stamp Order Desk by completing Form L301, Registration for Cannabis Stamping Regime, and submitting it to their regional excise office.

57. The purpose of the cannabis excise stamp is to indicate that cannabis duty and any additional cannabis duty in respect of a specified province were paid on the cannabis products and that the cannabis products were produced for the legal market.

58. For more information, refer to Memorandum EDM6-1, General information on the possession, sale, and distribution of cannabis products and the cannabis stamping regime.

Authorized representative

59. A licensee may wish to authorize an individual (such as an accountant, a lawyer, or an employee) or a firm as their representative for their excise duty program account. For information on how to authorize a representative, go to Representative authorization.

60. To give their representative access to their business information, the licensee must fill out the authorization online by logging in to My Business Account.

Notification of changes

61. Under section 6 of the Regulations, a licensee must notify their regional excise office in writing of any changes to their information without delay. Such changes may include:

• a change of name or legal entity
• the discontinuance of the operations covered by the licence
• a change in the list of locations
• a change in activities
• a change in any other information provided on, or in support of, the licence application, including officers and directors
• a change to the address where the records are kept

Name change

62. In the case of a name change, a cannabis licensee must notify their regional excise office in writing before the change occurs or as soon as possible after the change. No new cannabis licence or excise duty program account number (for example, 12345 6789 RD 0001) will be issued.

Change of legal entity

63. Where a change of legal entity occurs (for example, a proprietorship incorporates), the existing cannabis licence will be cancelled and the new legal entity will have to apply for a new licence by completing Form L300 and submitting it, along with replacement financial security in an acceptable form and amount, to their regional excise office.

64. In cases where a corporation merges or amalgamates with another corporation, a new licence may not be required. However, the CRA must be notified of the change and the certificate of amalgamation must be provided.

Refusal to issue or renew a licence

65. The decision to issue or renew a cannabis licence rests with the CRA. The CRA could deny an application for a licence in any of the following circumstances, even if an appropriate licence has been granted by Health Canada:

• the eligibility requirements in the Regulations are not satisfied
• there is reason to believe that access to the location(s) of the person will be denied or impeded by any person
• it is not in the public interest to issue a licence

66. A decision by the CRA to not issue a licence does not prevent the applicant from submitting another application for a licence in the future. The applicant could also apply to the Federal Court for a judicial review of the CRA's decision to not issue a licence. For more information about how to apply for a judicial review, go to How to file an Application for Judicial Review.

Suspension of a licence

Reason

67. Under subsection 23(2.1) of the Excise Act, 2001 and subsection 10(1) of the Regulations, a licence may be suspended if any of the following apply at any time:

• the licensee fails to meet any of the eligibility requirements identified in the "Eligibility for a licence" section of this memorandum
• the licensee fails to notify the CRA of any changes to their licensing information as required by the legislation
• the licensee fails to provide at the location(s) adequate space, equipment, or personnel required for the examination of goods and records by an officer
• access to the licensee's location(s) is denied or impeded by any person
• the licensee fails to meet any of the conditions of the licence, including failing to maintain adequate financial security
• the licensee is bankrupt
• the licensee ceases to carry on the business for which the licence was issued
• the licensee fails to comply with an Act of Parliament (other than the Excise Act, 2001) or of a provincial or territorial legislature that deals with the taxation or control of alcohol, cannabis, tobacco, or vaping products, or any regulations made under that Act
• the licensee acts to defraud His Majesty
• a licence issued to the licensee under subsection 62(1) of the Cannabis Act is amended, suspended, or cancelled
• it is otherwise in the public interest for the licence to be suspended

Notice of suspension and recourse

68. Under subsection 10(2) of the Regulations, the CRA will, immediately after suspending a licence, send a written notice to the licensee to advise of the suspension and to provide the grounds for the suspension. When a licence has been suspended, it means that, from the date of suspension, the person can no longer carry on any activities under that licence until it is reinstated.

69. Under subsection 10(3) of the Regulations, a licensee that receives notice that their cannabis licence is suspended may, within 90 days from the date of suspension, make representations to the CRA regarding why the licence should be reinstated.

70. The CRA will review the representations and notify the licensee of its decision in writing.

71. If the CRA's review results in the suspension of the licence being upheld and the licensee disagrees with this decision, they can apply to the Federal Court for a judicial review of the CRA's decision.

Reinstatement

72. When the grounds for the suspension of a licence no longer exist, the licence may be reinstated. When a licence is reinstated, the CRA will advise the licensee in writing and the licensee will be permitted to carry on any activities under that licence from the date of reinstatement.

Cancellation of a licence

Reason

73. Under subsection 23(2.1) of the Excise Act, 2001 and subsection 12(1) of the Regulations, a licence may be cancelled if any of the following apply at any time:

• the licensee requests in writing that the licence be cancelled
• a licence issued to the licensee under subsection 62(1) of the Cannabis Act is amended, suspended, or cancelled
• the licensee becomes bankrupt
• the licensee no longer meets the eligibility or any other requirements to possess the cannabis licence, including failing to maintain adequate financial security
• the licensee ceases to carry on the business or activities for which the licence was issued
• the licensee fails to comply with an Act of Parliament (other than the Excise Act, 2001) or of a provincial or territorial legislature that deals with the taxation or control of alcohol, cannabis, tobacco, or vaping products, or any regulations made under that Act
• the licensee acts to defraud His Majesty
• access to the licensee's location(s) is denied or impeded by any person
• it is otherwise in the public interest for the licence to be cancelled

Notice of cancellation and recourse

74. Under subsection 12(2) of the Regulations, before cancelling a licence, the CRA will send written notice to the licensee 90 days before the cancellation, along with all relevant information concerning the grounds for the cancellation. Written notice is not provided if the licensee requested that their licence be cancelled.

75. Under subsection 12(3) of the Regulations, a licensee that has received notice of the cancellation of their licence may, within 90 days from the date of the notice, make representations to the CRA regarding why the licence should not be cancelled.

76. The CRA will review the representations and notify the licensee of its decision in writing.

77. If the CRA's review results in the cancellation of the licence being upheld and the licensee disagrees with this decision, they can apply to the Federal Court for a judicial review of the CRA's decision. For more information about how to apply for a judicial review, go to How to file an Application for Judicial Review.

78. When a licence is cancelled, the person can no longer carry on any activities under that licence or possess stamped or unstamped cannabis products.

79. In addition, upon cancellation of a licence, any financial security that has been posted by the person that is in excess of any liabilities of the person to pay cannabis duty or any additional cannabis duty in respect of a specified province will be returned to the person.

Responsibilities of cannabis licensees

Keeping records

80. Under subsection 206(1), every cannabis licensee must keep all records that are necessary to determine whether they have complied with the Excise Act, 2001.

81. Subsection 206(2.01) states that every cannabis licensee must keep records that will enable the determination of the amount of cannabis product produced, received, used, packaged, re-worked, sold, or disposed of by the licensee. Records must be kept in an appropriate form and contain sufficient information to allow for the verification of the licensee's compliance with the Excise Act, 2001, including the licensee's liabilities and obligations with respect to cannabis duty and additional cannabis duty, and the amount of any refund or rebate the licensee has claimed.

82. Records must be retained for six years from the end of the year to which they relate.

83. For more information on the requirement to keep records, refer to Memorandum EDM9-1-1, General requirements for books and records.

Filing returns

84. Section 160 requires every cannabis licensee to file a return (Form B300, Cannabis Duty and Information Return under the Excise Act, 2001) for each reporting period (that is, for each calendar month or calendar quarter) and to calculate and remit any cannabis duty and additional cannabis duty payable on that return. A return must be filed for each reporting period, even if no duty is payable.

85. If a cannabis licensee files returns on a monthly basis, they must file a return and remit the total amount of all cannabis duty and additional cannabis duty payable for each calendar month. The return is due at the end of the following calendar month.

86. If a cannabis licensee has been authorized by the CRA, the licensee may file returns and remit the total amount of all cannabis duty and additional cannabis duty payable on a quarterly basis.

87. The fiscal quarters are based on calendar months, not a licensee’s fiscal year. All authorized licensees are required to file four returns annually, and the return periods are as follows:

• January 1 to March 31
• April 1 to June 30
• July 1 to September 30
• October 1 to December 31

88. For more information on quarterly filing, refer to Notice EDN88, Quarterly filing and remitting for all cannabis licensees.

89. A cannabis licensee that fails to file a return for a reporting period as and when required will be subject to penalty. Similarly, if payment is not made as and when required, a cannabis licensee will be subject to interest on the late payment.

90. A licensee that possesses more than one type of licence under the Excise Act, 2001 must file separate returns for each licence. For example, a cannabis licensee that also possesses a user's licence must also file Form B263, Excise Duty Return – Licensed User.

Locations filing separate returns

91. As set out in subsection 164(1), where a cannabis licensee has separate locations under a cannabis licence, the licensee may apply to the CRA for authority to file separate returns for each location using Form B269, Application or Revocation of the Authorization to File Separate Excise Duty Returns and Refund Applications for Branches or Divisions.

Offences and penalties

92. Under section 214, any person that produces cannabis products without a licence or an authorized exemption from licensing under section 158.01 is in contravention of the Excise Act, 2001 and is guilty of an offence. Upon conviction, that person may also be liable to a fine or imprisonment or both.

93. Section 234.1 imposes a calculated administrative penalty on any person that cultivates, produces, or packages cannabis products without a licence issued by the CRA. Although a producer may hold a licence issued by Health Canada, both a Health Canada licence and a CRA licence must be in effect before the producer takes possession of any cannabis products or begins any activities relating to cultivating, producing, or packaging cannabis products.

94. For more information about administrative penalties, refer to Memorandum EDM1-6-1, Administrative penalties under the Excise Act, 2001.

Further information