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RIGID RULES GOVERN CANNABIS AT THE BORDER

CBD PRODUCTS WHILE LEGAL, REMAIN TIGHTLY CONTROLLED FOR IMPORT/EXPORT

Since the Trudeau government largely decriminalized CBD and cannabis products in 2018, there has been a proliferation of both distribution and retail in this industry – but not all legal.

The legalization of CBD and cannabis products also comes with highly complex and difficult regulations which can lead to both civil and criminal enforcement where they are not strictly followed.

In a recent case, an unfortunate Ontario resident found this out, and also learned the extent to which CBSA and RCMP work together in these matters.

Criminal Charges for Improper Export

In November of 2023, a Mississauga man arriving at Ottawa's Macdonald-Cartier International Airport for a flight to Birmingham, U.K. brought two suitcases containing 37 kilograms of dried cannabis(!).  As might be expected, a CBSA Detector Dog quickly singled him out, and he was ultimately arrested and charged under the Cannabis Act with unlawful possession for exportation.

While he ultimately pled guilty, and was sentenced accordingly, the case is an interesting example of the extent to which CBSA and the RCMP work together on these issues, and how even the simple act of importing or exporting your CBD or cannabis products from Canada (perhaps on return or on leaving for vacation) can lead to unforeseen problems.

Import / Export Rules

In Canada, the importation and exportation of cannabis and CBD is tightly controlled and covered by both the Cannabis Act and the Cannabis Regulations.  Unfortunately, the lawful import or export of cannabis is confined to a narrow set of circumstances.

For starters, cannabis import/export can only be effected for medical or scientific purposes, or when dealing specifically with industrial hemp.  Even in those cases, the importer/exporter must also have either a personal exemption, or BOTH (1) a valid licence and (2) a valid permit.  Licenses are valid for up to five years, whereas permits are "single-use" documents that will apply for a particular date, port of entry/exit, and destination.  Personal exemptions may be granted by Health Canada for individuals leaving/entering Canada with their own medical-use cannabis product. 

Adding to the complexity, further licencing and authorization is likely required by federal or provincial authorities, depending on the situation.  For example, cannabis and CBD businesses will need to register with the CRA and comply with complex excise duties.

Penalties for Non-Compliance

Under section 11(3) of the Cannabis Act , fines, or even prison, await anyone caught importing or exporting cannabis in a non-compliant manner. Trouble with the CRA awaits anyone who does not pay the proper duties.

Takeaways

Cannabis import/export is only legal in narrow circumstances.  Even then, it comes with strict rules, and complex excise duties.  So forget about that small supply when leaving on vacation—without a licence and permit, transporting cannabis across the border is a serious offence.  That includes cannabis products like CBD.

For those in the cannabis business or worried about a customs mishap, specialized Counsel can help navigate through these rules.  Criminal charges and large excise fines can result from even small mistakes.  

For help with the Cannabis and CBD matters, please click here.

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