Whether you’re producing, packaging or importing Tobacco or Vaping products, chances are you will need some sort of licence or registration with the Government of Canada. You will likely need to obtain and apply excise duty stamps on your product before it is sold. The licences available for tobacco and vaping are quite similar but do have some differences due to the different characteristics of the products. It can be difficult navigating the licensing landscape, and our law firm is here to help you with that.
Excise Duty Stamps
You will more than likely have to place an excise duty stamp on the packaging of your tobacco or nicotine product. If you are importing such products and they are packaged before they arrive in Canada, the excise duty must be placed on the package prior to the product arriving in Canada. Otherwise it could get seized and destroyed by the government! Obviously that’s an account you want to try to avoid. You can find more information on Excise Duty Stamps here.
Tobacco Manufacturer’s Licence
Thinking of manufacturing tobacco products? You will need what is called a Tobacco Licence from the federal Canadian government. You will also need to purchase excise stamps from the Canada Revenue Agency and attach them to your products before they enter the duty-paid market. This does not apply for manufacturing of tobacco products for personal use, subject to the requirements outlined by the government here.
Tobacco Dealer’s Licence
If you are engaging in the purchase of raw leaf tobacco for resale, selling, import or export, you must obtain what is called a Tobacco Dealer’s Licence from the federal Canadian government. Note that you are “not permitted to kiln dry, cut, stem or otherwise manufacturer or work raw leaf or to destroy raw leaf tobacco.” Requirements for the Tobacco Dealer’s Licence can be found here. Note that this is different than the licence that must Tobacco Retail Dealer’s Permit that must be obtained by tobacco product retailers in Ontario.
Vaping Product Licence
If you are manufacturing vaping products in Canada, you must obtain a Vaping Product Licence from the Government of Canada. Manufacturing covers a while ambit of activities, including blending or mixing vaping substances, inserting a vaping substance into a vaping device, and any step in packaging the vaping product. Licences are valid for up to a maximum of 3 years and your licence will NOT automatically renew, so make sure you are on top of licensing matters. To get a vaping product licence you must meet a number of conditions, which includes amongst others the following conditions: Not being the subject of receivership of your debts, not failed to comply with any Act of Parliament or provincial legislation that deals with taxation or control of alcohol, tobacco, vaping or any regulations thereunder in the past 5 years. You must provide a list of all manufacturing vaping premises, a business plan, and acceptable financial security.
Become a Vaping Prescribed Persons Canada
If you are importing packaged vaping products into Canada, you will need to sign up for what’s called a Vaping Prescribed Persons registration. You will need to submit the corporation information, a business plan, sales and marketing plan, information on the company’s directors, as well as post a security deposit. Once your registration has been approved, you will get the ability to order excise duty stamps. These duty stamps must be applied onto your vaping product before it arrives in Canada.
Do you need a licence to sell vapes in Canada?
If you are manufacturing or importing into Canada vaping products, particularly vaping products that contain eliquid/vaping substances, chances are you will need to register to become a Vaping Prescribed Person or obtain a Vaping Product Licence from the Canada Revenue Agency. If you are in Ontario and selling vaping products through your own retail store, you may need a Specialty Vape Store registration with the Ontario government.
How do I import vaping products into Canada?
The commercial importation of vapes into Canada is allowed, however you must understand Canada’s customs systems and the excise duty/tax stamp system to ensure you import vaping products properly under law
You deserve a dependable and reliable lawyer on your side. Harrison Jordan is a Toronto-based lawyer assisting business with their tobacco and vaping licensing needs. Call him at +1 647 371 0032 or email him today. He’ll get back to you as soon as he can.