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On March 12, 2025, the Regulations amending certain regulations concerning cannabis (streamlining of requirements) and the Order Amending Schedule 2 to the Cannabis Act (collectively, the “Amendments”) came into force, which had the effect of amending the Industrial Hemp Regulations (“IHR”) to allow for more permissive activities with hemp seed derivative products and certain other plant materials.
Pursuant to Section 2(3) of the IHR, a derivative product is one that is made by processing only the grain of industrial hemp. As noted by Health Canada in its Regulatory Impact Statement Analysis, once hemp grain is processed, such as through seed oil extraction or grinding, it typically becomes non-viable and is therefore excluded from the definition of cannabis under the Cannabis Act (the “Cannabis Act”).
To align the regulatory controls for derivatives of non-viable industrial hemp grains with other Schedule 2 derivative products, the amendments to the IHR remove:
the maximum THC concentration of 10 parts per million for industrial hemp derivative products;
the testing requirement for derivative products;
the requirements that derivative products be labelled for wholesale sale; and
most import and export requirements.
The practical effect of the Amendments is that derivatives of non-viable industrial hemp grains may now be imported, exported, sold and processed without a licence or permit under the Cannabis Act or IHR, thereby further removing regulatory burden on industry.
Processing hemp
Processing technologies may now also be used on hemp roots and devitalized hemp grain for all purposes without a licence under the Cannabis Act. Further, Hemp stalks may be processed without an industrial hemp licence provided there is no concentration or isolation of phytocannabinoids undertaken. For example, Health Canada has confirmed that a cannabis or industrial hemp licence will not be required to make hemp hurd. Possession of viable industrial hemp seeds or grain continues to require an industrial hemp licence.
Industrial hemp import/export
Note that industrial hemp import and export permits will continue to be required for other forms of industrial hemp products but such permits will no longer require details about the ports of entry and exit into and out of Canada. These changes to permitting codify several temporary accommodations to regulatory requirements allowed by Health Canada during the pandemic, including the allowance for cannabis and industrial hemp importers and exporters to use alternate ports of entry or exit (i.e. a port not listed on their import or export permit). Additionally, the amendments remove the requirement to list the address of the intended customs office to which the shipment will be delivered on import permits.
Cannabis derivatives’ use in natural health products
While Schedule 2 to the Natural Health Product Regulations (the “NHPR”) excludes certain substances, such as cannabis, from the definition of a natural health product, Health Canada has indicated that a consequential amendment to Schedule 2 to the NHPR shall repeal the exception for industrial hemp grain derivatives (thereby allowing their use).
Notwithstanding the foregoing, all exempted cannabis plant parts under Schedule 2 to the Cannabis Act, their derivatives, or any product made from those derivatives that contain a THC concentration greater than 10 parts per million, will continue to be excluded from the definition of a natural health product. Similarly, an isolated or concentrated phytocannabinoid, or a synthetic duplicate of that phytocannabinoids shall remain excluded from the definition of a natural health product.
If you have any questions regarding how the Amendments may affect your business, or wish to discuss any opportunities created by the Amendments, please contact the author or any member of MLT Aikins agribusiness & food group.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
“}]] Recent amendments now allow for more permissive activities with hemp seed derivative products and certain other plant materials. Read More
