Standard Processing license

Standard Processing License

The Proposed Cannabis Act was created by Health Canada and adapts current regulatory compliances used for the medical cannabis industry in Canada. The new Act outlines proposed regulations to legalize the cannabis industry throughout Canada in order to meet the Government of Canada’s July 2018 deadline.

An essential part of developing a successful industry requires processing licensing for both large-scale and small-scale processors. Processing is not the same as cultivation – the growing and harvesting of cannabis plants. Rather processing focuses on the labeling, packaging and manufacturing of cannabis products with sale to the general public, as well as other intra-industry operations.

In order to legally sell to these groups that fall outside the scope of allowed sales under other licenses contained within the Act, one needs to apply for and be approved for a processing licensing.

One type of processing license that will be available is a Standard Processing License. This license is for large-scale manufacturers. It allows them to legally package and label cannabis products for direct-to-consumer sales, as well as sell to authorized distributors and other intra-industry operations.

Manufacturing activities would include producing the following cannabis products:

  • Cannabis Resin
  • Cannabis Resin
  • Oral Sprays
  • Other Intermediary Products
  • Synthesizing Phytocannabinoids
  • Capsules
  • Other Authorized Products

Furthermore, manufacturers with a Standard Processing License would be afforded other related activities, such as:

  • Possession
  • Storage
  • Transportation
  • Research and Development
  • Destruction

It should be noted a separate authorization will be required to sell cannabis products directly to the general public. However, this separate authorization is not necessary when selling to other intra-industry operations, authorized distributors, and authorized sellers.

All applications for Standard Processing Licenses would be reviewed and approved by the Ministry of Health. The Ministry of Health would also be responsible for the oversight of license suspensions, revocations, renewals, restrictions, and amendments, as well as the right to deny applications.

The Act does allow individuals and organizations the option of submitting a single application for either a single Standard Processing License or multiple licenses for other activities in addition to processing, such as cultivation.