SOR-2019-202 Cannabis Tracking System Order

Current to 2025-04-14 · last amended 2025-04-01

Contents

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

s. 1 — Definitions

The following definitions apply in this Order.

Act means the Cannabis Act. (Loi)

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

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

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

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

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

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

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

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 means a licence referred to in subsection 8(5) of the Regulations. (licence de vente à des fins médicales)

public body includes a Crown corporation. (organisme public)

Regulations means the Cannabis Regulations. (Règlement)

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

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

s. 1(2) — Interpretation

For the purposes of this Order,

cannabis contained in a cannabis product includes cannabis that is a cannabis product; and

a reference to the sale or distribution of cannabis — including cannabis products — does not include

the return of cannabis,

the sale or distribution of cannabis for the purposes of destruction, or

the import or export of cannabis.

Federal Licences

s. 2 — Information to be provided

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:

the number of cannabis products that formed part of the inventory on the first day of the previous month;

the quantity of unpackaged cannabis that formed part of the inventory on the first day of the previous month;

the number of cannabis products that were added to the inventory during the previous month by virtue of

the sale or distribution of cannabis products to the holder,

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

the return of cannabis products to the holder, or

any other reason;

the quantity of unpackaged cannabis, other than cultivation waste, that was added to the inventory during the previous month by virtue of

being sold or distributed to the holder,

being produced from other unpackaged cannabis,

being imported,

being returned to the holder, or

any other reason;

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

the sale or distribution of cannabis products,

the destruction of cannabis products,

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

the return of cannabis products by the holder, or

any other reason;

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

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,

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

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

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;

the quantity of unpackaged cannabis, other than cultivation waste, that ceased to form part of the inventory during the previous month by virtue of

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,

being used to produce other unpackaged cannabis,

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

being destroyed,

being lost due to drying or other normally accepted business activities,

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

being returned by the holder, or

any other reason;

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;

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

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

being exported;

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

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

s. 2(2) — Number, quantity and book value by class

In respect of cannabis products,

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;

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

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.

s. 2(3) — Quantity and book value by class

In respect of unpackaged cannabis,

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;

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

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.

s. 2(4) — Number and book value by province and class

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

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

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.

s. 2(5) — Quantity and book value by province and class

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

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;

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

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.

s. 2(6) — Cessation of activities

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.

s. 2(7) — Definition of cultivation waste

For the purposes of subsection (1), cultivation waste has the same meaning as in subsection 1(2) of the Regulations.

s. 3 — Additional information

The information that is provided under section 2 must be accompanied by the following information:

the licence holder’s licence number;

the month and calendar year to which the information relates; and

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;

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,

in the case of indoor cultivation, in square metres, and

in the case of outdoor cultivation, in hectares; and

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.

s. 3(2) — Surface area — calculation

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.

Sale Authorized Under Provincial Act

s. 4 — Public body

A public body that is authorized under an Act of a province to sell cannabis must, no later than the 15th day of each month, provide the following information to the Minister in respect of each location at which the body sells cannabis or from which it sends or delivers cannabis:

the number of cannabis products that formed part of the inventory on the first day of the previous month;

the number of cannabis products that were added to the inventory during the previous month by virtue of

the sale or distribution of cannabis products,

the return of cannabis products, or

any other reason;

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

the sale or distribution of cannabis products,

the destruction of cannabis products,

the loss or theft of cannabis products,

the return of cannabis products, or

any other reason;

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

the retail sale of cannabis products to consumers who were present at the location at the time of sale,

the retail sale of cannabis products to consumers who were not present at the location at the time of sale, or

the sale of cannabis products to persons that are authorized to sell them or the distribution of cannabis products to other locations at which such products are sold or distributed;

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;

an indication of whether, during the previous month, the primary activity was

the sale of cannabis products to persons that are authorized to sell them or the distribution of cannabis products to other locations at which such products are sold or distributed, or

the retail sale of cannabis products to consumers;

the business name of the person at that location that is selling, sending or delivering cannabis;

the unique identifier assigned to the location by the public body or, failing that, by the Minister;

the name of the municipality in which the location is situated, if any, and the postal code of the location; and

the month and calendar year to which the information referred to in paragraphs (a) to (f) relates.

s. 4(2) — Number and book value — not in inventory

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

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

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.

s. 4(3) — Number, quantity and book value — cannabis products in inventory

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

the number of cannabis products must be provided for each class specified in column 1 of Schedule 1;

the quantity of cannabis contained in those cannabis products 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

the book value must be provided for each class specified in column 1 of Schedule 1 and expressed in Canadian dollars, net of sales tax.

s. 4(4) — Cessation of activities

A public body referred to in subsection (1) that ceases to conduct all authorized activities at a location must, within 15 days after the day on which the activities cease, provide any information that has yet to be provided under that subsection in respect of the previous month, as well as information in respect of the month in which the activities cease.

s. 5 — Person other than public body

Subject to subsection (5), a person — other than a public body — that is authorized under an Act of a province to sell cannabis must, no later than the 10th day of each month, provide the following information, in writing, to the public body referred to in subsection (2), in respect of each location in the province at which they are authorized to sell cannabis or from which they send or deliver it:

the number of cannabis products that formed part of the inventory on the first day of the previous month;

the number of cannabis products that were added to the inventory during the previous month by virtue of

the sale or distribution of cannabis products,

the return of cannabis products, or

any other reason;

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

the sale or distribution of cannabis products,

the destruction of cannabis products,

the loss or theft of cannabis products,

the return of cannabis products, or

any other reason;

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

the retail sale of cannabis products to consumers who were present at the location at the time of sale,

the retail sale of cannabis products to consumers who were not present at the location at the time of sale, or

the sale of cannabis products to persons that are authorized to sell them or the distribution of cannabis products to other locations at which such products are sold or distributed;

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

an indication of whether, during the previous month, the primary activity was

the sale of cannabis products to persons that are authorized to sell them or the distribution of cannabis products to other locations at which such products are sold or distributed, or

the retail sale of cannabis products to consumers;

the business name of the person at that location that is authorized under a provincial Act referred to in subsection 69(1) of the Act to sell cannabis;

the unique identifier assigned to the location by the public body or, failing that, by the Minister;

the name of the municipality in which the location is situated, if any, and the postal code of the location; and

the month and calendar year to which the information referred to in paragraphs (a) to (f) relates.

s. 5(2) — Public body

The public body to which the information must be provided is

in the following cases, the public body that is responsible for authorizing the sale of cannabis in the province:

there is no public body that is authorized under an Act of the province to sell cannabis, or

the Minister and the public body that is responsible for authorizing the sale of cannabis in the province — or the Minister and the government of the province — have agreed that the public body will receive the information and provide it to the Minister; and

in any other case, the public body that is authorized under an Act of the province to sell cannabis.

s. 5(3) — Number and book value — not in inventory

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

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

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.

s. 5(4) — Number, quantity and book value — cannabis products in inventory

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

the number of cannabis products must be provided for each class specified in column 1 of Schedule 1;

the quantity of cannabis contained in those cannabis products 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

the book value must be provided for each class specified in column 1 of Schedule 1 and expressed in Canadian dollars, net of sales tax.

s. 5(5) — Conditions

A person is required to provide the information referred to in subsection (1) only if

the public body to which the information is to be provided is required — or the public body or the government of the province agrees — to provide the information to the Minister; and

a notice specifying the effective date of the requirement or agreement is published on the Government of Canada website or is provided to the person.

s. 5(6) — Condition no longer met

If the condition set out in paragraph (5)(a) ceases to be met, the Minister must ensure that a notice to that effect is published on the Government of Canada website or is provided to the affected persons as soon as feasible.

s. 5(7) — Cessation of activities

A person referred to in subsection (1) that ceases to conduct all authorized activities at a location must, within 15 days after the day on which the activities cease, provide any information that has yet to be provided under that subsection in respect of the previous month, as well as information in respect of the month in which the activities cease.

General Provisions

s. 6 — Manner of providing information

A holder of a licence, or a public body, that is required to provide information under this Order must

provide the information through the dedicated website established by the Minister for that purpose; and

notify the Minister if an individual who was responsible for submitting the information on behalf of the holder or body is no longer responsible for doing so.

s. 7 — Retention

A person that is required to provide information under this Order must ensure that

the records, reports, electronic data and other documents containing the information are retained for a period of at least two years beginning on the day on which the information is provided;

the records, reports, electronic data and other documents — and any information on which the information contained in those documents is based — are

retained in a manner that will enable an audit of the documents or information to be made in a timely manner,

if the person holds a licence issued under subsection 62(1) of the Act, retained at the site specified in the licence, and

if the person does not hold a licence issued under subsection 62(1) of the Act, retained at their place of business in Canada or, if they do not have such a place of business, at a place of business in Canada; and

the calculations, measurements and other data on which the information is based are documented in a manner that will enable them to be examined in a timely manner.

s. 7(2) — Continued retention

If a person is no longer required to provide information under this Order, they must ensure that the requirements set out in subsection (1) are complied with until the end of the applicable retention period.

Repeal

The Cannabis Tracking System Order 1 is repealed. SOR/2018-178

Coming into Force

*9 — Regulations Amending the Cannabis Regulations (New Classes of Cannabis)

This Order comes into force on the day on which the Regulations Amending the Cannabis Regulations (New Classes of Cannabis), other than subsection 1(2) of those Regulations, come into force, but if this Order is registered after that day, it comes into force on the day on which it is registered.[Note: Order in force October 17, 2019.]

Cannabis Products Column 1 Column 2 Item Class of Cannabis Products Unit of Measurement 1 cannabis plant seeds number of seeds 2 cannabis plants number of plants 3 kilograms 4 dried cannabis kilograms 5 edible cannabis that is in solid form at a temperature of 22 ± 2°C kilograms 6 edible cannabis that is not in solid form at a temperature of 22 ± 2°C kilograms 7 cannabis extract that is intended for inhalation kilograms 8 kilograms 9 cannabis extract that is intended for nasal, rectal or vaginal use kilograms 10 kilograms 11 any other class of cannabis products kilograms

Unpackaged Cannabis Column 1 Column 2 Item Class of Unpackaged Cannabis Unit of Measurement 1 cannabis plant seeds number of seeds 2 cannabis plants that are not budding or flowering number of plants 3 cannabis plants that are budding or flowering number of plants 4 kilograms 5 dried cannabis kilograms 6 kilograms 7 cannabis used in the production of cannabis of a class that is set out in any of items 8 to 14 kilograms 8 edible cannabis that is in solid form at a temperature of 22 ± 2°C kilograms 9 edible cannabis that is not in solid form at a temperature of 22 ± 2°C kilograms 10 cannabis extract that is intended for inhalation kilograms 11 kilograms 12 cannabis extract that is intended for nasal, rectal or vaginal use kilograms 13 kilograms 14 any other class of unpackaged cannabis kilograms