Canada’s 257 cannabis inspections yield 3 ‘noncompliant’ rankings, 63 ‘main’ deviations


Well being Canada handed out three noncompliant rankings to cannabis producers from the practically 260 inspections the federal regulator performed within the final fiscal yr, in response to its lately launched compliance report.

The inspection information illustrates the state of compliance – and, in some instances, shortfalls – for Canada’s fast-growing medical cannabis producers for the fiscal yr ended March 2018, though specialists stated a extra full image of high quality and compliance also needs to take into account recollects and end-user complaints.

Of the 257 inspections, 63 “main” and two “crucial observations” have been famous by Well being Canada’s specialists.

Main observations are issued for infractions which will improve the danger of diversion and/or might improve well being dangers, whereas crucial observations are made for a deficiency that can improve diversion and/or will trigger well being dangers.

A producer might be assigned a compliant or noncompliant ranking based mostly on the quantity and seriousness of the violations discovered by Well being Canada.

Samuel Bouabane, director of high quality and regulatory at Hashish Compliance, a consulting agency in Mississauga, Ontario, stated license holders ought to deal with each main and demanding findings severely.

“If left unaddressed, these kinds of observations might escalate and place the licensed standing of the location in jeopardy,” he stated.

Bouabane cited examples of main observations as instances the place there might be inadequate quality-assurance oversight of sure actions, personnel following unapproved procedures, or lacking steps in customary working procedures.

Examples of crucial observations might embrace batches launched with clear issues akin to failed testing, identified or unaddressed manufacturing or packaging points, contamination, any proof of fraud, or criminal activity, Bouabane stated.

Sherry Boodram, CEO of Toronto-based regulatory consulting agency CannDelta and a former Well being Canada senior inspector, informed Marijuana Enterprise Day by day the inspection abstract displays the brand new streamlined method the regulator adopted early within the fiscal yr.

“The entire cannabis producers would have undergone a minimum of one inspection, with the frequency relying on the license holder’s threat stage,” she stated.

“Definitely, with extra authorities assets, it could be advantageous for everybody concerned if Well being Canada inspected producers extra regularly to make sure producers are additionally receiving as a lot steering and suggestions from Well being Canada as potential.”

The variety of federal authorizations to domesticate, course of or promote medical cannabis greater than doubled in the identical interval to only beneath 100.

Regulator actions

Well being Canada points compliance actions if and when deficiencies are recognized throughout an inspection.

Among the many compliance actions taken within the fiscal yr have been 5 warning letters:

  1. Agrima Botanicals was issued one in November 2017 for actions on the website that weren’t approved by the license, in response to the report. A crucial remark was famous by the regulator, and the corporate was discovered to be noncompliant. Well being Canada stated compliance with the laws was achieved after the warning letter.
  2. CannTrust was additionally warned by Well being Canada by way of a letter in November 2017 for altering the manufacturing course of for cannabis oil with out submitting a license modification utility. Main and minor observations have been famous in an annual inspection.
  3. After a focused inspection in September that yr, Pure Med Firm was given minor, main and demanding observations, leading to a noncompliant inspection ranking. The corporate was given a warning letter as a result of noncompliance with Good Manufacturing Observe.
  4. In an everyday inspection in April 2017, Aurora Hashish obtained minor and main observations. A warning letter was issued and merchandise have been seized due to a violation of the Bodily Safety Directive, the report states. Regardless of the letter being issued, Well being Canada concluded that Aurora was compliant with the authorized and regulatory necessities.
  5. Throughout an everyday inspection in April 2017, Pure Med Firm earned minor and main observations and an inspection ranking of noncompliance. That brought about a warning letter to be issued for noncompliance with Good Manufacturing Observe.

No licenses have been revoked.

On the tail finish of the earlier fiscal yr, the regulator began unannounced random testing after two licensed producers recalled medical cannabis due to unapproved pesticides.

One of many 17 shock inspections within the 2018 fiscal yr resulted in a voluntary recall by Damaged Coast Hashish after take a look at outcomes discovered the presence of an unapproved pest-control product.


If Well being Canada makes an remark after an inspection, Hashish Compliance’s Bouabane stated the producer ought to take it severely, whatever the kind.

He stated the producer ought to:

  • Take particular consideration to internally examine the remark.
  • Determine root causes.
  • Set up corrective or preventative actions to deal with any shortfalls instantly.

An organization also can enchantment to the regulator to downgrade an remark based mostly on the findings of its personal investigation.

Bouabane stated the corporate ought to put together a well timed written response to Well being Canada, together with an motion plan.

A license holder’s enterprise depends on the corporate staying compliant with federal guidelines, CannDelta’s Boodram famous, together with the model they’ve constructed.

“The easiest way to remediate a scenario of noncompliance is to be clear with Well being Canada and diligent with correcting the problems instantly ought to there be the chance to take action,” she stated.

Matt Lamers might be reached at [email protected]


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