Tobacco Licences for Canadian Manufacturers and Importers

Whether you’re producing, packaging or importing tobacco products, chances are you will need some sort of licence or registration with the Government of Canada and your provincial government. 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. Understanding vape licensing requirements in Canada is essential for compliance and successful operation in this evolving industry. Failure to adhere to these regulations can lead to significant penalties and disruptions in your business. Our experienced team can guide you through the process, ensuring that you meet all necessary obligations while focusing on your core business activities.

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. This same licence also applies if you are importing manufactured tobacco products into Canada. You will also need to purchase excise stamps from the Canada Revenue Agency and attach them to your products before they are sold in 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.

Special Excise Warehouse Licence

If your business plans to store packaged tobacco products where the excise duty has not yet been paid, you must obtain a Special Excise Warehouse Licence. This federal licence authorizes you to legally possess these non-duty-paid goods. Storing them without this authorization can result in seizures and other penalties.

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.