New 0.5% levy on interprovincial sales of industrial hemp products takes effect on registration

Plain-language summary · AI-assisted · not legal advice

A new federal order creates a 0.5% levy on the purchase price of 13 listed industrial hemp products (including hemp flower, hempseed, stalk, and extraction biomass) when they are sold in interprovincial trade. Sellers owe the levy, but purchasers must deduct it at the point of sale and remit it to the Canadian Industrial Hemp Promotion-Research Agency through an appointed collector—along with a detailed statement of the transaction. When a product is grown in one province and processed in another, the producer owes a 0.5% levy on a self-determined price, with the processor responsible for remitting it. Anyone who buys, sells, or processes covered hemp products must keep related records for seven years and make them available to the Agency on request. Note that the levy provisions automatically expire one year after the order is registered unless renewed.

Who this affects: industrial hemp producers · hemp processors · hemp purchasers and dealers · interprovincial hemp traders · collector appointees under the Agency