Health Canada defines Industrial Hemp as "...industrial hemp includes Cannabis plants and plant parts, of any variety, that contains 0.3% tetrahydrocannabinol (THC) or less in the leaves and flowering heads.

Industrial hemp also includes the derivatives of industrial hemp plants and plant parts. These do not include the flowering parts or the leaves.

Examples of derivatives that are considered industrial hemp include: hemp seed oil (oil derived from seed or grain) and hemp flour.

Industrial hemp does not include:

Non-viable Cannabis seeds, except for their derivatives. While the derivatives of non-viable Cannabis seeds are considered to be industrial hemp, the non-viable seeds themselves are not industrial hemp;

Mature Cannabis stalks, when those stalks are stripped of their leaves, flowers, seeds, and branches;

Fiber derived from such mature Cannabis stalks.

Most activities with non-viable cannabis seeds, with bare mature cannabis stalks (without leaves, flowers, seeds, and branches), and with fiber derived from bare mature cannabis stalks, are not controlled under the CDSA. As such, they do not require authorization.

Cultivating, propagating and/or harvesting industrial hemp are included in production.

Industrial hemp production includes obtaining industrial hemp - e.g. viable grain or seed or their derivatives - by any method or process, including manufacturing or using any means to change the chemical or physical properties of industrial hemp and including also cultivating, propagating or harvesting industrial hemp.

Industrial hemp production is an activity that is authorized by a licence issued under the IHR, subject to the terms of the licence and to the regulations.

However, it is important to note that the production of derivatives or products made from whole industrial hemp plants, including sprouts, or the leaves, flowers or bracts of those plants, cannot be authorized by a licence issued under the IHR. Most activities with whole industrial hemp plants, including sprouts, or with the leaves, flowers or bracts of the plant, fall outside of the application of the IHR. These activities are controlled under the CDSA and are not authorized under the IHR."