Excise Act (R.S.C., 1985, c. E-14)

Marginal note:Operating without a licence

226. Every person who, without having a licence under this Act then in force,

• (a) manufactures any tobacco or cigars except as permitted by this Act,

• (b) claiming to have grown any tobacco and manufactured it solely for his own use, sells or barters away any tobacco so manufactured, or

• (c) having purchased any raw leaf tobacco grown in Canada from the cultivator thereof, in any way unlawfully manufactures that tobacco and sells it, or offers it for sale in a manufactured state,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

Marginal note:Unlawfully manufacturing home produced tobacco

227. Every person who, without having a licence under this Act then in force, manufactures any tobacco grown on his own land or property

• (a) for the purpose of sale, or for any purpose other than use by himself and such members of his family as are resident with him on the farm or premises on which the tobacco was grown,

• (b) into any product other than Canada twist, or

• (c) in excess of fifteen kilograms (15 kg) for each adult member of the family resident on the farm or premises,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

Marginal note:Further punishment

228. Every person who becomes liable to a punishment provided for in section 226 or 227 shall, in addition thereto, forfeit to Her Majesty in right of Canada triple the amount of excise duty and licence fee that should have been paid by that person under this Act.

229. to 232. [Repealed, 1993, c. 25, s. 48]

Marginal note:Unlawful packaging or stamping

• 233. (1) Every person who packages or stamps tobacco or cigars in such a way as to indicate that the duties of excise have been paid in respect of the tobacco or cigars or, in the case of imported tobacco or cigars, that the additional customs duty has been paid under the Customs Act and the Customs Tariff in respect of the tobacco or cigars, and who is not a licensed tobacco manufacturer, a licensed cigar manufacturer or a tobacco packer or, where the tobacco or cigars have been reported under the Customs Act and released under that Act, the importer or owner of the tobacco or cigars,

  • (a) is guilty of an indictable offence and liable to

    • (i) a fine of not less than ten thousand dollars and not more than one million dollars, or

    • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding five years; or

  • (b) is guilty of an offence punishable on summary conviction and liable to

    • (i) a fine of not less than one thousand dollars and not more than one hundred thousand dollars, or

    • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years.

• Marginal note:Imprisonment in default of payment

  (2) Where a fine is imposed under subsection (1), a term of imprisonment may be imposed in default of payment of the fine, but no such term shall exceed

  • (a) where the fine is imposed under paragraph (1)(a), five years in addition to any other term of imprisonment imposed on the person under that paragraph; and

  • (b) where the fine is imposed under paragraph (1)(b), two years in addition to any other term of imprisonment imposed on the person under that paragraph.

• Marginal note:Forfeiture

  (3) All articles subject to excise on the premises at the time the tobacco or cigars referred to in subsection (1) are discovered shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.