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On October 5, Health Canada formally announced the cost recovery for cannabis licenses. A 30-day public consultation in late summer on cost recovery received a total of 881 online, written and form letters on feedback of the proposal. The fees collected will be used for resources to regulate cannabis license activities including licensing and compliance, enforcement and inspections. Eventually, defined performance targets, as is seen in other divisions of Health Canada where costs recovery programs exist, will be established in part from the cost recovery fees. However, performance targets and timelines for licensing may not be seen for a little while until there is a pattern of monthly incoming applications.
Summary of Health Canada Cannabis License Fees
New application screening fee: Standard License – $3277, Micro and Nursery License – $1638. No fees for research and testing cannabis licenses
Security clearance fee: Screen, process, issue or refuse security clearance – $1654
Import/export permit fee: For medical or scientific purposes – $610
Annual regulatory fee:
Standard License
2.3% of cannabis revenue for standard license holder or $23,000 if revenue less than $1 million
Micro or Nursery License
1% of first $1 million of cannabis revenue or $2500 if revenue is less than $250,000
Producers for medical purposes only
No fees
As is the case with other cost recovery programs these fees will increase on an annual basis based on inflation (typically 1-2%).
Health Canada will be publishing the cannabis cost recovery program in Canada Gazette, Part II, on October 17, 2018, the date the Cannabis Act comes into force
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Resources
Health Canada Announces the Approach to Cost Recover for the Regulation of Cannabis
