Health Canada's Updated Fees for Natural Health Products: What You Need to Know
On March 27th, Health Canada released an update to the proposed fees for Natural Health Products (NHP).
The new revisions to the fee structure feature adjustments to proposed fees, enhanced support for small businesses with fee-setting ratio changes, gradual implementation of licensing fees over a 7-year span, elimination of the originally proposed Class III Novelty category for product licensing, and streamlining of site licensing fees into fewer categories.
The proposed revisions will be available for consultation until April 25, 2024. Stakeholders are encouraged to provide feedback before the outlined changes are published in Canada Gazette II. For feedback, please use the provided form.
Lowered Licensing Fees and Discounts for Small Businesses
One of the most notable changes is the reduction in licensing fees, which is expected to range from 38% to 72% compared to the initially proposed fee structure. Small businesses will receive additional financial relief, as they can anticipate further discounts in addition to the revised fees.
Adjustments to Fee-Setting Ratios and Phased Implementation
Health Canada revised the fee-setting ratio for the four years of the seven-year phasing period. This ratio plays a crucial role in determining the proportion of fees that will be charged to the industry and what will be covered by the taxpayer dollars. The transition outlined will be implemented over a span of seven years, facilitating a gradual introduction of reduced fees to ensure a seamless adjustment process for the industry stakeholders.
The proposal for the phasing period is as follows:
Year 1 (December 1, 2025 - March 31, 2027): 65% of each fee charged
Year 2 (April 1, 2027 - March 31, 2028): 80% of each fee charged
Year 3 (April 1, 2028 - March 31, 2029): 90% of each fee charged
Year 4 (April 1, 2029 - March 31, 2030): 100% of each fee charged
Removal of Class III Novelty Category and Performance Standards Update
The proposed Class III Novelty category has been removed, with associated costs implemented into the general Class III category. This results in a significant reduction in fees, with the initial proposed fee of $58,332 reduced to $4151. Moreover, Health Canada has updated performance standards, shortening the assessment period of the now removed category from 300 days to 210 days. Failure to meet these standards will result a 25% remission of the paid fee, unless resulted from extenuating circumstances.
Streamlining of Annual Site Licensing Fees
To further streamline processes, annual site licensing fees have been restructured from five categories to three: Manufacturing, Importation, and Packaging and Labelling. This adjustment aims to simplify administrative procedures and reduce unnecessary complexities for businesses.
For more information and detailed fee structures, visit Health Canada's official update: