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Glossary

R&D Transfer

A regulated, limited-quantity transfer of cannabis from a licensee to a testing laboratory or another licensee for research and development purposes — typically before the product has a passing COA — recorded in METRC under a specific R&D transfer type.

Also called: research and development transfer,R&D sample,lab sample transfer

What an R&D transfer is

An R&D transfer is a regulator-permitted movement of cannabis product from a licensee to a lab — or, in some states, between licensees — specifically for research, development, or testing purposes. It's distinct from a wholesale transfer because the product may not yet have a passing COA and is not destined for retail sale in its current state.

Most states cap the quantity that can move under an R&D transfer and require it to be recorded in METRC under a designated R&D transfer type.

Common use cases

  • Submitting a batch sample to a testing lab for the required pre-retail panel
  • Sending product to a partner for formulation work, packaging trials, or stability studies
  • Sending samples to a marketing or photography partner (where state rules permit)

Why it matters to compliance

R&D transfers are a common audit finding because operators often misuse them — moving product for promotional or commercial purposes under the R&D type, or exceeding the per-period limits. State rules vary materially here. An SOP that names exactly which transfers qualify as R&D in your state, and a checklist item enforcing pre-transfer review, is the defensible baseline.

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