Cannabis and business travel between Canada and the US

Updates:

1. On October 9, 2018, U.S. Customs and Border Protection updated their statement on Canada's Legalization of Marijuana and Crossing the Border. The statement reads in part "A Canadian citizen working in or facilitating the proliferation of the legal marijuana industry in Canada, coming to the U.S. for reasons unrelated to the marijuana industry will generally be admissible to the U.S. however, if a traveler is found to be coming to the U.S. for reason related to the marijuana industry, they may be deemed inadmissible."

2. October 3, 2018: Transport Canada will allow passengers to bring 30g of cannabis aboard domestic flights, according to Marc Garneau, Minister of Transportation. Watch the video segment.

Original Post:

It won't be long before adult Canadians can consume marijuana and invest in its growth, distribution and sale. The Cannabis Act makes recreational cannabis legal in Canada on Oct. 17.

CBC cites reports which predict approximately 40 percent of Canadians over the age of 18 are expected to use legalized cannabis products. The economic impact of the legalization will be significant, but estimates vary as to how much income the fledgling industry will generate. Deloitte projected that cannabis sales could bring Canada's economy more than $22.6 billion, while more conservative estimates place the potential value of the industry at around $10 billion.

One thing is certain: Canada's cannabis market will skyrocket after legalization. But individuals who work in the cannabis industry, as well as those who use the products recreationally, will have to be careful when travelling outside the country, especially into the U.S.

Business travellers who are recreational cannabis users should understand US federal law

At the border, questions about cannabis use are not standard, but they aren't unheard of. U.S. border agents have the power to ask travellers if they have ever consumed cannabis or if they are in possession of any illicit drugs. Answering in the affirmative to any of those questions, regardless of why, can easily result in denied entry.

Speaking with marijuana education resource Leafy, Washington-based immigration attorney Len Saunders suggested that cannabis users simply state that they do not wish to answer those questions. Refusing to answer will still likely result in denied entry, but it avoids the legal ramifications of lying to federal agents.

Cannabis industry personnel must practice caution when travelling

In July, CBC reported that executives and other professionals associated with the cannabis industry were running into problems when entering the U.S. Canadians travelling for cannabis-related business have been turned away or been banned from entering the U.S., even those travelling between Canada and Washington state, which has had legal recreational marijuana retail since 2014.

Canadians who invest in U.S.-based cannabis companies, and have no other contact with the industry, are also at risk of running into trouble with U.S. border authorities. Take it from Vancouver-based venture capitalist Sam Znaimer, who was banned for life from returning to the U.S. after a U.S. border agent considered his investment in cannabis aiding and abetting the illicit trafficking of drugs. CBS News reported that Znaimer may be able to procure an expensive temporary waiver to his ban sometime in the future. Still, cannabis professionals entering the U.S. for business purposes should consider these potentially life-long consequences before crossing the border.

Updating travel policies in light of legal cannabis

As recreational marijuana becomes legal throughout Canada, travel managers both in and out of the cannabis industry must consider how it will affect employees who regularly cross the U.S. border. Even if travellers are not associated with the cannabis industry but use cannabis products recreationally, they could be barred from crossing into the U.S.

Furthermore, regardless of the legal status of cannabis within the U.S. or Canada, transporting cannabis products into or out of Canada is still illegal. Any traveller with cannabis products on their person should declare them before entering the country. Failure to do so could result in legal action.

To prevent trouble down the road, update your travel policy to address marijuana use and how to answer questions at the border from U.S. border agents.