Skip to content

Client Update: Border concerns growing for cannabis industry participants

Kevin Landry

News articles have reported Canadians being labelled as “inadmissible” or being denied entry at the United States’ border because of ties to the cannabis industry. Being labeled inadmissible by border authorities is the equivalent of receiving a lifetime ban from entering the United States. Because of these recent developments we provide the following information with respect to persons with ties to the cannabis industry who intend to enter the United States.

Why are Canadians being denied entry?

Although cannabis is legal in some states, it is not legal federally in the U.S. where it remains listed as a Schedule I drug under the U.S. federal Controlled Substances Act. U.S. Borders are within the jurisdiction of U.S. federal laws, rather than state laws. Federal laws apply when crossing the border.

What made these Canadians inadmissible?

Media reports reveal several reasons Canadians have been denied entry to the United States:

Travelers should note that a person who is caught lying or misrepresenting material facts at the border can also be deemed inadmissible for that reason alone.

What are the rules?

The United States’ immigration legislation is broadly-worded and there is little official guidance on how border authorities should handle cannabis-related concerns. Border authorities have significant discretion which has led to some confusion regarding what can lead to inadmissibility.

Under the Immigration and Nationality Act individuals who have been convicted of, or who admit to having committed the essential elements of, “a violation of (or a conspiracy or attempt to violate) any law or regulation of a State, the United States, or a foreign country relating to a controlled substance” are inadmissible to the United States.

There has been no indication that the passing of the Cannabis Act in Canada will eliminate the risk of Canadians with ties to the cannabis industry being considered inadmissible. The Government of Canada’s warning to Canadians travelling to the United States remains important:

Previous use of cannabis, or any substance prohibited by U.S. federal laws, could mean that you are denied entry to the U.S.. Involvement in the legal cannabis industry in Canada could also result in your being denied entry.

The Cannabis Act becomes law on October 17, 2018, and regulated activities associated with cannabis will no longer constitute controlled substance offenses in Canada as of that time. After legalization, if legal cannabis-related activities occurred only in Canada, it may be determined that these activities would not amount to grounds for inadmissibility. However, until official guidance is provided from the Government of the United States that says otherwise, mentioning cannabis-related activities at the border will continue to pose a risk of being labelled inadmissible.

Even once across the border, there are other federal U.S. laws which pose problems for cannabis industry actors intending to do business in the U.S., such as anti-money laundering rules, which have caused concern for U.S. Banks who refuse to take proceeds of cannabis sales.

What if I am deemed inadmissible?

If you have been labelled inadmissible on cannabis-related grounds, you can still apply for a travel waiver to enter the United States. However, applying for a waiver can take a year to process and comes at significant cost. A waiver is granted on a discretionary basis and there is no guarantee it will be granted.

Further information

This update is intended for general information only. If you have questions about the above information, and how it applies to your specific situation please contact Kevin Landry.

SHARE

Archive

Search Archive


 
 

Recognizing subtle discrimination in the workplace: insights from recent legal cases

March 4, 2024

By Sheila Mecking and Michiko Gartshore Subtle discrimination can have a much stronger and longer effect on employees when not properly addressed. It can also result in costly consequences for an employer who does not…

Read More

Immediate changes to travel eligibility for citizens of Mexico

February 29, 2024

By Brittany Trafford and Brendan Sheridan Today Immigration, Refugees and Citizenship Canada (“IRCC”) has announced significant changes to the travel requirements for Mexican citizens. As of February 29, 2024 at 11:30p.m. Eastern Time, all electronic…

Read More

Updated guidance on business reporting obligations under Canada’s supply chain transparency legislation

February 23, 2024

By Christine Pound, ICD.D., Twila Reid, ICD.D., Sarah Dever Letson, CIPP/C, Hilary Newman and Daniel Roth Introduction As we reported on November 30, 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains…

Read More

Trustees beware! New trust reporting and disclosure requirements under the Income Tax Act are here – are you ready for them?

February 21, 2024

By Richard Niedermayer, K.C., TEP  & Rackelle Awad New trust disclosure rules originally announced on February 27, 2018, are now in force, and trusts with taxation years ending on or after December 31, 2023 are…

Read More

Proposed Criminal Interest Rate Regulations: exemptions to the lower criminal interest rate

February 14, 2024

By David Wedlake and Andrew Paul In late December 2023, the Federal Government issued draft Criminal Interest Rate Regulations under the Criminal Code. These proposed regulations follow the Budget Implementation Act, 2023, No. 1 which…

Read More

Outlook for 2024 Proxy Season

February 9, 2024

By Andrew Burke, Colleen Keyes, Gavin Stuttard, David Slipp and Logan Walters With proxy season on the horizon, many public companies are once again preparing their annual disclosure documents and shareholder materials for their annual…

Read More

Significant changes announced for new study permit applications

February 6, 2024

By Brendan Sheridan and Tiegan Scott The Government of Canada recently announced further changes to the international student program that not only limits the number of new study permit applicants per year, but also increases…

Read More

Plans of arrangement come to Newfoundland and Labrador

January 30, 2024

By Tauna Staniland, K.C., ICD.D, Joe Thorne, and Nadine Otten What can you do when your corporation wants to complete a complex transaction requiring significant corporate restructuring that cannot be easily completed under the corporation’s…

Read More

Energy Watch

January 29, 2024

Stewart McKelvey is pleased to present Energy Watch – a review of key legislative and policy advancements in the renewable energy sector in 2023 in each of Newfoundland and Labrador, Nova Scotia and New Brunswick…

Read More

Beyond the border: A year end immigration wrap-up

December 21, 2023

We are pleased to present Beyond the border: A year end immigration wrap-up. Compiled by Lawyers from our Immigration team, this 2023 update covers topics including the Government of Canada’s ambitious immigration plans for the future;…

Read More

Search Archive


Scroll To Top