As Canada’s legal cannabis markets developed at such a fast pace since 2018, it’s shocking how regulation policies, especially on excise stamps, have failed the regulated sector.

For such a small detail, it is no wonder that most consumers wouldn’t think twice about the stamp that seals their package as they walk out of a licensed dispensary. However, for retailers and producers  across Canada, it has been the cause of many headaches, product delays, and accessibility issues. 

Currently, as required by both legislation and regulations, cannabis excise stamps are unique to each province and territory; they are meant to serve as proof that the appropriate excise duties have been paid in a respective jurisdiction.  

However, these stamps have proven to be a greater frustration than governments likely considered they would be at the outset of legalization; they stifle product flow, they are a significant cost burden and they are helping fuel over-packaging.

Indeed, province and territory-specific excise stamps were cited as a major issue by senior representatives of some of Canada’s largest licensed producers in an op-ed in 2019. These leaders indicated that “… the labelling requirement removes [a] licensed producer’s ability to respond in real time to changing demand… and adds unnecessary complexity to product forecasting.” In other words, when a product is misallocated or sold out in a province, the retailer simply has no choice but to wait for the next shipment, even if they have possession of an excess supply in another province or territory. Talk about red tape.

I believe multiple excise stamps serve as a costly, administrative, burden on licensed producers – of all sizes – who are doing their utmost to be competitive with the illicit market.  Consider the mechanics of having to apply a separate jurisdictional stamp to a variety of products – be they vapes, edibles, beverages, pre-rolls, dried flowers, oils; some companies have product SKUs in the hundreds.  The regulated cannabis industry is often labelled as an excessive packager of their products, but current regulations – imposed by the government – such as the excise stamp are the real culprits.

Multiple cannabis excise stamps are an obstacle to competitiveness and efficiency. 

Federal-provincial-territorial governments have been asked, consistently, by the cannabis sector to apply one national excise stamp to ensure a more even flow of product and to mitigate this administrative issue for businesses. 

It’s not like the precedent doesn’t exist: alcohol regulations nationwide do not require a region-specific stamp nor do they face the same label delays. Governments realized decades ago that one national stamp for that sector was just good business sense and lowered the cost burden on companies.  Governments that want to help the regulated cannabis sector succeed should treat the regulated cannabis sector – which like the alcohol sector has a variety of diverse products – equally on a regulatory basis.. 

To their credit, the Canada Revenue Agency has stated it is open to a redesign of the jurisdictional excise stamps.  But, a redesign without a removal of the requirement for multiple stamps is simply a half-measure. One excise stamp would do the job — and would ease the burden that the regulated sector is shouldering. The question is: are governments even listening?