Cannabis: Edibles, Extracts and Topicals Customs Excise Duty Procedures
Customs Notice 19-24

Ottawa,

1. The purpose of this notice is to inform importers on the calculation of the amounts of excise duty and any additional duty to be imposed on edible cannabis, cannabis extracts or cannabis topical products, as per legislative changes to the Excise Act, 2001, when importing these goods into Canada for medical or scientific purposes.

2. Information on the federal and provincial excise duty rates applicable on importations of cannabis edibles, extracts and topicals for medical or scientific purposes may be found on the Canada Revenue Agency website. All modifications will be active in the Customs Commercial System (CCS) beginning December 16, 2019.

3. The table below is a list of the province/territory HS Administrative Codes to be entered in Field 27 on Form B3-3, Canada Customs Coding Form.

Province/territory HS administrative codes
Province / territory HS administrative code
Alberta 0000.99.99.70
British Columbia 0000.99.99.71
Manitoba 0000.99.99.72
New Brunswick 0000.99.99.73
Newfoundland & Labrador 0000.99.99.74
Northwest Territories 0000.99.99.75
Nova Scotia 0000.99.99.76
Nunavut 0000.99.99.77
Ontario 0000.99.99.78
Prince Edward Island 0000.99.99.79
Québec 0000.99.99.80
Saskatchewan 0000.99.99.81
Yukon 0000.99.99.82

4. The table below is a list of the Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals

Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals
Province/territory Federal rate
($/mg of total THC)
Additional rate in respect of
province/territory
$/mg of total THC)
Current Ad Valorem sales
tax adjustment (%)
Alberta 0.0025 0.0075 16.8
British Columbia 0.0025 0.0075 N/A
Manitoba 0.0025 N/A N/A
New Brunswick 0.0025 0.0075 N/A
Newfoundland and Labrador 0.0025 0.0075 N/A
Northwest Territories 0.0025 0.0075 N/A
Nova Scotia 0.0025 0.0075 N/A
Nunavut 0.0025 0.0075 19.3
Ontario 0.0025 0.0075 3.9
Prince Edward Island 0.0025 0.0075 N/A
Quebec 0.0025 0.0075 N/A
Saskatchewan 0.0025 0.0075 6.45
Yukon 0.0025 0.0075 N/A

5. The following example illustrates how the customs duty, federal excise duty and provincial excise duty is to be calculated on Form B3-3, Canada Customs Coding Form.

Example:

Calculation of cannabis duty and additional cannabis duty on a chocolate bar (U.S. origin), 100 grams, infused with 500 milligrams of THC imported in Ontario. The value of the importation is $200.00 (CAD).

Example of calculation of cannabis duty and additional cannabis duty on a chocolate bar (U.S. origin), 100 grams, infused with 500 milligrams of <abbr>THC</abbr> imported in Ontario

Classification: Line 1

Shows the actual classification line; the Health Canada Import permit number must be entered in Special Authority field (26). The GST (5%) is calculated on the value for duty and entered in Field 42.

Calculation of Combined Federal and Provincial Excise Duty: Line 2

Shows the amount of the combined federal and provincial excise duty; this amount is calculated at $0.01 per milligram of THC of the quantity imported (which includes the flat-rate federal cannabis duty of $0.0025 per milligram of the total THC of the cannabis product plus the flat-rate provincial additional cannabis duty of $0.0075). Refer to table: Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals.

Provincial Sales Tax Adjustment: Line 3

Shows the amount of sales tax adjustment for Ontario, calculated by multiplying the base amount by 3.9%. Refer to table: Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals.

Amount Payable

All of the individual line amounts will be totaled automatically in field number 51 when submitting the B3 for importation.  This amount will be the amount payable by the importer.

In the above-referenced example, the total amount payable is $23.44, corresponding to the sum of the total amount of GST ($10.64) and excise duty ($12.80).

6. For additional information on how to complete Form B3-3, Canada Customs Coding please refer to D17-1-10, Coding of Customs Accounting Documents.

7. For more information, within Canada, call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 to 16:00 local time/except statutory holidays). TTY is also available within Canada: 1-866-335-3237.

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