Short Title

Marginal note:Short title

1 This Act may be cited as the Excise Act, 2001.

Interpretation

Marginal note:Definitions

2 The definitions in this section apply in this Act.

absolute ethyl alcohol

absolute ethyl alcohol means the substance with the chemical composition C₂H₅OH. (alcool éthylique absolu)

accredited representative

accredited representative means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act. (représentant accrédité)

additional cannabis duty

additional cannabis duty means a duty imposed under section 158.2 or 158.22. (droit additionnel sur le cannabis)

Agency

Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. (Agence)

alcohol

alcohol means spirits or wine. (alcool)

alcohol licensee

alcohol licensee means a person who is a spirits licensee or a wine licensee. (titulaire de licence d’alcool)

alcohol registrant

alcohol registrant means a person who holds an alcohol registration issued under section 17. (détenteur autorisé d’alcool)

analyst

analyst means a person who is designated as an analyst under section 11. (analyste)

approved formulation

approved formulation means

• (a) any product made with alcohol by a licensed user in accordance with a formula for which the user has approval from the Minister; and

• (b) any imported product that, in the opinion of the Minister, would be a product under paragraph (a) if it were made in Canada by a licensed user. (préparation approuvée)

assessment

assessment means an assessment under this Act and includes a reassessment. (cotisation)

beer

beer means beer or malt liquor as defined in section 4 of the Excise Act. (bière)

black stock

black stock, in respect of manufactured tobacco, means that the tobacco is stamped but not marked in accordance with any statute of a province to indicate that it is intended for retail sale in a particular province or in particular provinces. (non ciblé)

bottle-your-own premises

bottle-your-own premises means premises in which, in accordance with the laws of the province in which they are located, alcohol is supplied from a marked special container of alcohol for the purpose of being packaged by a purchaser. (centre de remplissage libre-service)

bulk

bulk, in respect of alcohol, means alcohol that is not packaged. (en vrac)

cannabis

cannabis has the same meaning as in subsection 2(1) of the Cannabis Act. (cannabis)

cannabis duty

cannabis duty means a duty imposed under section 158.19 or 158.21. (droit sur le cannabis)

cannabis excise stamp

cannabis excise stamp means a stamp that is issued by the Minister under subsection 158.03(1) and that has not been cancelled under section 158.07. (timbre d’accise de cannabis)

cannabis licensee

cannabis licensee means a person that holds a cannabis licence issued under section 14. (titulaire de licence de cannabis)

cannabis plant

cannabis plant has the same meaning as in subsection 2(1) of the Cannabis Act. (plante de cannabis)

cannabis product

cannabis product means

• (a) a product that is cannabis but that is not industrial hemp produced or imported in accordance with the Cannabis Act or the Industrial Hemp Regulations,

• (b) a product that is an industrial hemp by-product,

• (c) anything that is made with or contains a product described in paragraph (a) or (b), or

• (d) a prescribed substance, material or thing,

but does not include a prescribed substance, material or thing. (produit du cannabis)

cigar

cigar includes

• (a) a cigarillo or cheroot; and

• (b) any roll or tubular construction intended for smoking that consists of a filler composed of pieces of natural or reconstituted leaf tobacco, a binder of natural or reconstituted leaf tobacco in which the filler is wrapped and a wrapper of natural or reconstituted leaf tobacco. (cigare)

cigarette

cigarette includes any roll or tubular construction intended for smoking, other than a cigar or a tobacco stick. If a cigarette exceeds 102 mm in length, each portion of 76 mm or less is considered to be a separate cigarette. (cigarette)

Commissioner

Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)

container

container, in respect of a tobacco product or a cannabis product, means a wrapper, package, carton, box, crate, bottle, vial or other container that contains the tobacco product or cannabis product. (contenant)

customs bonded carrier

customs bonded carrier means a person who transports or causes to be transported goods in accordance with section 20 of the Customs Act. (transporteur cautionné)

customs bonded warehouse

customs bonded warehouse means a place that is licensed as a bonded warehouse under the Customs Tariff. (entrepôt de stockage)

customs bonded warehouse licensee

customs bonded warehouse licensee means a person licensed under the Customs Tariff to operate a bonded warehouse. (exploitant agréé d’entrepôt de stockage)

data

data means representations, in any form, of information or concepts. (données)

denature

denature means to denature spirits into denatured alcohol or specially denatured alcohol using prescribed denaturants in the prescribed manner. (dénaturation)

denatured alcohol

denatured alcohol means any prescribed grade of denatured alcohol made from spirits in accordance with the prescribed specification for that grade. (alcool dénaturé)

dutiable amount

dutiable amount, in respect of a cannabis product, means

• (a) if paragraph (b) does not apply, the amount determined by the formula

  A × [100%/(100% + B + C)]

  where

  A

  is the total of the following amounts that the purchaser is liable to pay to the vendor by reason of, or in respect of, the sale of the cannabis product:

  • (i) the consideration, as determined for the purposes of Part IX of the Excise Tax Act, for the cannabis product,

  • (ii) any additional consideration, as determined for the purposes of that Part, for the container in which the cannabis product is contained, and

  • (iii) any amount of consideration, as determined for the purposes of that Part, that is in addition to the amounts referred to in subparagraphs (i) and (ii), whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter,

  B

  is the percentage set out in section 2 of Schedule 7, and

  C

  is

  • (i) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, the prescribed percentage in respect of the specified province, or

  • (ii) in any other case, 0%; and

• (b) in prescribed circumstances, the amount determined in prescribed manner. (somme passible de droits)

duty

duty means, unless a contrary intention appears, the duty imposed under this Act and the duty levied under section 21.1 or 21.2 of the Customs Tariff and, except in Parts 3 and 4, includes special duty. (droit)

duty free shop

duty free shop means a place that is licensed as a duty free shop under the Customs Act. (boutique hors taxes)

duty free shop licensee

duty free shop licensee means a person licensed under the Customs Act to operate a duty free shop. (exploitant agréé de boutique hors taxes)

duty-paid market

duty-paid market means the market for goods in respect of which duty, other than special duty, is payable. (marché des marchandises acquittées)

duty-paid value

duty-paid value means

• (a) in respect of imported cigars, the value of the cigars as it would be determined for the purpose of calculating an ad valorem duty on the cigars in accordance with the Customs Act, whether or not the cigars are subject to ad valorem duty, plus the amount of any duty imposed on the cigars under section 42 of this Act and section 20 of the Customs Tariff; and

• (b) in respect of imported cigars that, when imported, are contained in containers or otherwise prepared for sale, the total of the value of the cigars as determined in accordance with paragraph (a) and the value similarly determined of the container in which they are contained. (valeur à l’acquitté)

excise stamp

excise stamp means a tobacco excise stamp or a cannabis excise stamp. (timbre d’accise)

excise warehouse

excise warehouse means the premises of an excise warehouse licensee that are specified by the Minister as the excise warehouse of the licensee. (entrepôt d’accise)

excise warehouse licensee

excise warehouse licensee means a person who holds an excise warehouse licence issued under section 19. (exploitant agréé d’entrepôt d’accise)

export

export means to export from Canada. (exportation)

ferment-on-premises facility

ferment-on-premises facility means the premises of a ferment-on-premises registrant that are specified by the Minister as the registrant’s ferment-on-premises facility. (vinerie libre-service)

ferment-on-premises registrant

ferment-on-premises registrant means a person who holds a ferment-on-premises registration issued under section 15. (exploitant autorisé de vinerie libre-service)

fiscal half-year

fiscal half-year means a fiscal half-year as determined under subsection 159(1.1). (semestre d’exercice)

fiscal month

fiscal month means a fiscal month as determined under section 159. (mois d’exercice)

fiscal year

fiscal year of a person means the same period that is the person’s fiscal year under Part IX of the Excise Tax Act. (exercice)

flowering material

flowering material means the whole or any part (other than viable seeds) of an inflorescence of a cannabis plant at any stage of development, including the infructescence stage of development. (matière florifère)

foreign duty free shop

foreign duty free shop means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country. (boutique hors taxes à l’étranger)

foreign ships’ stores

foreign ships’ stores means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft. (provisions de bord à l’étranger)

Her Majesty

Her Majesty means Her Majesty in right of Canada. (Sa Majesté)

import

import means to import into Canada. (importation)

industrial hemp

industrial hemp means cannabis that is industrial hemp for the purposes of the Cannabis Act or the Industrial Hemp Regulations. (chanvre industriel)

industrial hemp by-product

industrial hemp by-product means flowering material (other than viable achenes) or non-flowering material that has been removed or separated from an industrial hemp plant and that has not

• (a) been disposed of by retting or by otherwise rendering it into a condition such that it cannot be used for any purpose not permitted under the Controlled Drugs and Substances Act; or

• (b) been disposed of in a similar manner under the Cannabis Act. (sous-produit de chanvre industriel)

industrial hemp grower

industrial hemp grower means a person that holds a licence or permit under the Controlled Drugs and Substances Act or the Cannabis Act authorizing the person to produce industrial hemp plants. (producteur de chanvre industriel)

industrial hemp plant

industrial hemp plant means a cannabis plant, including a seedling, that is industrial hemp. (plante de chanvre industriel)

intoxicating liquor

intoxicating liquor has the same meaning as in section 2 of the Importation of Intoxicating Liquors Act. (boisson enivrante)

judge

judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)

licensed tobacco dealer

licensed tobacco dealer means a person who holds a tobacco dealer’s licence issued under section 14. (commerçant de tabac agréé)

licensed user

licensed user means a person who holds a user’s licence issued under section 14. (utilisateur agréé)

liquor authority

liquor authority means a government board, commission or agency that is authorized by the laws of a province to sell intoxicating liquor. (administration des alcools)

listed international agreement

listed international agreement means

• (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada; or

• (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction. (accord international désigné)

low-THC cannabis product

low-THC cannabis product means a cannabis product

• (a) consisting entirely of cannabis of a class referred to in any of items 1 to 3 of Schedule 4 to the Cannabis Act; and

• (b) any part of which does not have a maximum yield of more than 0.3% THC w/w, taking into account the potential to convert delta-9-tetrahydrocannabinolic acid into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)

manufacture

manufacture, in respect of a tobacco product, includes any step in the preparation or working up of raw leaf tobacco into the tobacco product. It includes packing, stemming, reconstituting, converting or packaging the raw leaf tobacco or tobacco product. (fabrication)

manufactured tobacco

manufactured tobacco means every article, other than a cigar or packaged raw leaf tobacco, that is manufactured in whole or in part from raw leaf tobacco by any process. (tabac fabriqué)

mark

mark means, in respect of

• (a) a special container of spirits, to mark in the prescribed form and manner to indicate that the container is intended for

  • (i) delivery to and use by a registered user, or

  • (ii) delivery to and use at a bottle-your-own premises; and

• (b) a special container of wine, to mark in the prescribed form and manner to indicate that the container is intended for delivery to and use at a bottle-your-own premises. (marquer)

Minister

Minister means the Minister of National Revenue. (ministre)

month

month means a period beginning on a particular day in a calendar month and ending on

• (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

• (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. (mois)

non-duty-paid

non-duty-paid, in respect of packaged alcohol or a cannabis product, means that duty (other than special duty in the case of alcohol) has not been paid on the alcohol or cannabis product. (non acquitté)

non-flowering material

non-flowering material means any part of a cannabis plant other than flowering material, viable seeds and a part of the plant referred to in Schedule 2 to the Cannabis Act. (matière non florifère)

officer

officer means, except in section 167, in the definition contact information in subsection 211(1) and in sections 226 and 296,

• (a) a person who is appointed or employed in the administration or enforcement of this Act;

• (b) a member of the Royal Canadian Mounted Police or a member of a police force designated under subsection 10(1); and

• (c) with respect to imported goods that have not been released under the Customs Act, an officer as defined in subsection 2(1) of that Act. (préposé)

packaged

packaged means

• (a) in respect of raw leaf tobacco, a tobacco product or a cannabis product, packaged in a prescribed package; or

• (b) in respect of alcohol, packaged

  • (i) in a container of a capacity of not more than 100 L that is ordinarily sold to consumers without the alcohol being repackaged, or

  • (ii) in a marked special container. (emballé)

partially manufactured tobacco

partially manufactured tobacco means manufactured tobacco that is cut filler or cut rag or that is manufactured less fully than cut filler or cut rag. (tabac partiellement fabriqué)

peace officer

peace officer has the same meaning as in section 2 of the Criminal Code. (agent de la paix)

person

person means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind. (personne)

personal use

personal use, in relation to the use of a good by an individual, means the use of the good by the individual or by others at the individual’s expense. It does not include the sale or other commercial use of the good. (usage personnel)

prescribed

prescribed means

• (a) in the case of a form or the manner of filing a form, authorized by the Minister;

• (b) in the case of the information to be given on or with a form, specified by the Minister; and

• (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (Version anglaise seulement)

prescription cannabis drug

prescription cannabis drug means a cannabis product that is a drug that has been assigned a drug identification number under the Food and Drug Regulations, other than

• (a) a drug or mixture of drugs that may, under the Food and Drugs Act or the Controlled Drugs and Substances Act, be sold to a consumer, as defined in subsection 123(1) of the Excise Tax Act, without a prescription, as defined in section 1 of Part I of Schedule VI to the Excise Tax Act; or

• (b) a prescribed cannabis product or a cannabis product of a prescribed class. (drogue de cannabis sur ordonnance)

produce

produce means

• (a) in respect of spirits, to bring into existence by distillation or other process or to recover;

• (b) in respect of wine, to bring into existence by fermentation; or

• (c) in respect of a cannabis product, has the same meaning as in subsection 2(1) of the Cannabis Act but also includes packaging the cannabis product. (production)

raw leaf tobacco

raw leaf tobacco means unmanufactured tobacco or the leaves and stems of the tobacco plant. (tabac en feuilles)

record

record means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device. (registre)

registered user

registered user means a person who holds a user’s registration issued under section 16. (utilisateur autorisé)

reporting period

reporting period means a reporting period as determined under section 159.1. (période de déclaration)

responsible

responsible, in relation to a person, means that the person is responsible for bulk alcohol in accordance with sections 104 to 121. (responsable)

restricted formulation

restricted formulation means an approved formulation on which the Minister has imposed the condition or restriction under section 143 that the formulation can only be used by a licensed user or be exported. (préparation assujettie à des restrictions)

sale price

sale price, in respect of cigars, means the total of

• (a) the amount charged as the price for the cigars before an amount payable in respect of a tax under Part IX of the Excise Tax Act is added,

• (b) the amount charged as the price for or in respect of the container in which the cigars are contained,

• (c) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale of the cigars in addition to the amount charged as the price, whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter, and

• (d) the amount of duty imposed on the cigars under section 42. (prix de vente)

SDA registrant

SDA registrant means a person who holds a specially denatured alcohol registration issued under section 18. (détenteur autorisé d’alcool spécialement dénaturé)

special container

special container means

• (a) in respect of spirits, a container of a capacity of more than 100 L but not more than 1,500 L; and

• (b) in respect of wine, a container of a capacity of more than 100 L. (contenant spécial)

special duty

special duty means

• (a) in respect of a tobacco product, a special duty imposed under subsection 53(1), 54(2) or 56(1); and

• (b) in respect of imported spirits, the special duty imposed under subsection 133(1). (droit spécial)

special excise warehouse

special excise warehouse means the premises of a special excise warehouse licensee that are specified by the Minister as the special excise warehouse of the licensee. (entrepôt d’accise spécial)

special excise warehouse licensee

special excise warehouse licensee means a person who holds a special excise warehouse licence issued under section 20. (exploitant agréé d’entrepôt d’accise spécial)

specially denatured alcohol

specially denatured alcohol means any prescribed grade of specially denatured alcohol made from spirits in accordance with the prescribed specification for that grade. (alcool spécialement dénaturé)

specified premises

specified premises, in respect of a licensed user, means the premises of the licensed user that are specified by the Minister under subsection 23(3). (local déterminé)

specified province

specified province means a prescribed province. (province déterminée)

spirits

spirits means any material or substance containing more than 0.5% absolute ethyl alcohol by volume other than

• (a) wine;

• (b) beer;

• (c) vinegar;

• (d) denatured alcohol;

• (e) specially denatured alcohol;

• (f) fusel oil or other refuse produced as a result of the distillation process;

• (g) an approved formulation; or

• (h) any product containing or manufactured from a material or substance referred to in paragraphs (b) to (g) that is not consumable as a beverage. (spiritueux)

spirits licensee

spirits licensee means a person who holds a spirits licence issued under section 14. (titulaire de licence de spiritueux)

stamped

stamped means

• (a) in respect of a tobacco product, that a tobacco excise stamp, and all prescribed information in a prescribed format in respect of the tobacco product, are stamped, impressed, printed or marked on, indented into or affixed to the tobacco product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the tobacco product; and

• (b) in respect of a cannabis product, that a cannabis excise stamp, and all prescribed information in a prescribed format in respect of the cannabis product, are stamped, impressed, printed or marked on, indented into or affixed to the cannabis product or its container in the prescribed manner to indicate that duty has been paid on the cannabis product. (estampillé)

sufferance warehouse

sufferance warehouse has the same meaning as in subsection 2(1) of the Customs Act. (entrepôt d’attente)

sufferance warehouse licensee

sufferance warehouse licensee means a person licensed under the Customs Act to operate a sufferance warehouse. (exploitant agréé d’entrepôt d’attente)

take for use

take for use means

• (a) in respect of alcohol, to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol; and

• (b) in respect of a cannabis product, to consume, analyze or destroy the cannabis product. (utilisation pour soi)

Tax Court

Tax Court means the Tax Court of Canada. (Cour de l’impôt)

THC

THC means Δ⁹-tetrahydrocannabinol ((6aR, 10aR)-6a, 7,8,10a-tetrahydro-6,6,9-trimethyl-3-pentyl-6H-dibenzo [b,d] pyran-1-ol). (THC)

tobacco dealer

tobacco dealer means a person, other than a tobacco licensee, who purchases for resale, sells or offers to sell raw leaf tobacco on which duty is not imposed under this Act. (commerçant de tabac)

tobacco excise stamp

tobacco excise stamp means a stamp that is issued by the Minister under subsection 25.1(1) and that has not been cancelled under section 25.5. (timbre d’accise de tabac)

tobacco licensee

tobacco licensee means a person who holds a tobacco licence issued under section 14. (titulaire de licence de tabac)

tobacco manufacturing equipment

tobacco manufacturing equipment means any machinery or equipment designed or modified specifically for the manufacture of a tobacco product. (matériel de fabrication du tabac)

tobacco marking

tobacco marking means prescribed information that is required under this Act to be printed on or affixed to a container of tobacco products that are not required under this Act to be stamped. (mention obligatoire)

tobacco product

tobacco product means manufactured tobacco, packaged raw leaf tobacco or cigars. (produit du tabac)

tobacco stick

tobacco stick means any roll or tubular construction of tobacco intended for smoking, other than a cigar, that requires further preparation to be consumed. If a tobacco stick exceeds 90 mm in length or 800 mg, each portion of 60 mm or less or each portion of 650 mg or less, respectively, is considered to be a separate stick. (bâtonnet de tabac)

vegetative cannabis plant

vegetative cannabis plant means a cannabis plant, including a seedling, that has not yet produced reproductive structures, including flowers, fruits or seeds. (plante de cannabis à l’état végétatif)

viable seed

viable seed means a viable seed of a cannabis plant that is not an industrial hemp plant. (graine viable)

wine

wine means

• (a) a beverage, containing more than 0.5% absolute ethyl alcohol by volume, that is produced without distillation, other than distillation to reduce the absolute ethyl alcohol content, by the alcoholic fermentation of

  • (i) an agricultural product other than grain,

  • (ii) a plant or plant product, other than grain, that is not an agricultural product, or

  • (iii) a product wholly or partially derived from an agricultural product or plant or plant product other than grain;

• (b) sake; and

• (c) a beverage described by paragraph (a) or (b) that is fortified not in excess of 22.9% absolute ethyl alcohol by volume. (vin)

wine licensee

wine licensee means a person who holds a wine licence issued under section 14. (titulaire de licence de vin)

Marginal note:Dutiable amount — consideration

2.1 The following rules apply in determining an amount of consideration for the purposes of the definition dutiable amount in section 2:

• (a) if a provision of Part IX of the Excise Tax Act deems the consideration, or part of the consideration, for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming does not apply for that determination; and

• (b) subsection 155(1) of that Act is to be read without reference to “and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,”.

Marginal note:References to other enactments

3 A reference in this Act to a repealed enactment, or a portion of it, of the legislature of a province or territory shall, with respect to a subsequent transaction, matter or thing, be read as a reference to the provisions of any enactment replacing the repealed enactment or portion that relate to the same subject-matter as the repealed enactment or portion. If there is no replacement enactment or portion, or if there are no provisions in the replacement enactment that relate to the same subject-matter, the repealed enactment or portion shall be read as unrepealed in so far as is necessary to maintain or give effect to the reference.

Meaning of administration or enforcement of this Act

4 For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act.

Marginal note:Constructive possession

• 5 (1) For the purposes of section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04, subsections 158.05(1) and 158.11(1) and (2), sections 230 and 231 and subsection 238.1(1), if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

• Marginal note:Definition of possession

  (2) In this section and in section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04 and subsections 158.05(1), 158.11(1) and (2) and 238.1(1), possession means not only having in one’s own personal possession but also knowingly

  • (a) having in the actual possession or custody of another person; or

  • (b) having in any place, whether belonging to or occupied by one’s self or not, for one’s own use or benefit or that of another person.

Marginal note:Arm’s length

• 6 (1) For the purposes of this Act,

  • (a) related persons are deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

  • (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

• Marginal note:Associated persons

  (3) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

• Marginal note:Corporations controlled by same person or group

  (4) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

• Marginal note:Partnership or trust

  (5) For the purposes of this Act, a person is associated with

  • (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

  • (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

• Marginal note:Association with third person

  (6) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

PART 1Application and Administrative Matters

Application to Her Majesty

Marginal note:Act binding on Her Majesty

7 This Act is binding on Her Majesty and Her Majesty in right of a province.

Administration and Officers

Marginal note:Minister’s duty

8 The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Officers and employees

• 9 (1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

• Marginal note:Delegation of powers

  (2) The Minister may authorize a designated officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

• Marginal note:Authorization

  (3) The Minister of Public Safety and Emergency Preparedness may authorize a designated officer or agent, or a class of officers or agents, to exercise powers and perform duties of that Minister under section 68.

Marginal note:Designation of police forces

• 10 (1) The Minister and the Minister of Public Safety and Emergency Preparedness may designate any police force in Canada for the purposes of the enforcement of any of the provisions of this Act that are specified in the designation, subject to any terms and conditions specified in the designation, for any period specified in the designation.

• Marginal note:Persons to have powers and duties of officers

  (2) All members of a police force designated under subsection (1) have the powers and duties of an officer for the purposes of the enforcement of the provisions of this Act specified in the designation.

• Marginal note:Designation to be published

  (3) A designation under subsection (1) or any variation or cancellation of that designation must be published in the Canada Gazette and is not effective before it is so published.

Marginal note:Designation of analysts

11 The Minister may designate any person or class of persons as an analyst for the purposes of this Act.

Marginal note:Administration of oaths

12 Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Inquiries

Marginal note:Authorization of inquiry

• 13 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an officer, to make any inquiry that the Minister considers necessary with reference to anything relating to the administration or enforcement of this Act.

• Marginal note:Appointment of hearing officer

  (2) If the Minister authorizes a person to make an inquiry, the Minister shall without delay apply to the Tax Court for an order appointing a hearing officer before whom the inquiry will be held.

• Marginal note:Powers of hearing officer

  (3) For the purposes of an inquiry, a hearing officer has all of the powers conferred on a commissioner under sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

• Marginal note:When powers to be exercised

  (4) A hearing officer shall exercise the powers conferred on a commissioner under section 4 of the Inquiries Act in relation to any person that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer shall not exercise the power to punish any person unless, on application by the hearing officer, a judge certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

• Marginal note:Rights of witnesses

  (5) Any person who gives evidence in an inquiry is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

• Marginal note:Rights of person investigated

  (6) Any person whose affairs are investigated in the course of an inquiry is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer, on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and their counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

PART 2Licences and Registrations

Licences

Marginal note:Issuance

• 14 (1) Subject to the regulations, on application, the Minister may issue to a person

  • (a) a spirits licence, authorizing the person to produce or package spirits;

  • (b) a wine licence, authorizing the person to produce or package wine;

  • (c) a user’s licence, authorizing the person to use bulk alcohol, non-duty-paid packaged alcohol or a restricted formulation;

  • (d) a tobacco licence, authorizing the person to manufacture tobacco products; or

  • (e) a tobacco dealer’s licence, authorizing the person to carry on the activity of a tobacco dealer.

• Marginal note:Cannabis licence

  (1.1) Subject to the regulations, on application, the Minister may issue to a person a cannabis licence for the purposes of this Act.

• Marginal note:Cannabis licence — effect

  (1.2) A cannabis licence issued to a person shall not have effect before a licence or permit issued to the person under subsection 62(1) of the Cannabis Act comes into effect.

• Marginal note:Deemed packaging excluded

  (2) A person is not entitled to a licence under paragraph (1)(a) or (b) by reason only of having been deemed to have packaged alcohol under section 77 or 82.

• Marginal note:Production excluded

  (3) A person is not entitled to a licence under paragraph (1)(a) by reason only of

  • (a) having been deemed to have produced spirits under section 131.2; or

  • (b) having produced spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

• Marginal note:Issuance of a wine licence

  (4) Subject to the regulations, on application by a person who is the holder of a spirits licence and a user’s licence, the Minister may issue to the person a wine licence, authorizing the person to fortify wine.

Registrations

Marginal note:Ferment-on-premises registration

15 Subject to the regulations, on application, the Minister may issue a ferment-on-premises registration to a person authorizing the person to possess at their ferment-on-premises facility bulk wine produced at the premises by an individual and owned by the individual.

Marginal note:User’s registration

16 Subject to the regulations, on application, the Minister may issue a user’s registration authorizing the use of non-duty-paid packaged spirits by

• (a) a scientific and research laboratory in receipt annually of aid from the Government of Canada or a province, for scientific purposes;

• (b) a university or other post-secondary educational institution recognized by a province, for scientific purposes;

• (c) a health care facility, for medicinal and scientific purposes; or

• (d) a health institution in receipt annually of aid from the Government of Canada or a province, for medicinal and scientific purposes.

Marginal note:Alcohol registration

17 Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol, specially denatured alcohol or a restricted formulation.

Marginal note:SDA registration

• 18 (1) Subject to the regulations, on application, the Minister may issue a specially denatured alcohol registration to a person authorizing the person to possess and use specially denatured alcohol.

• Marginal note:Restrictions on grades of SDA

  (2) The Minister may impose restrictions on the use of particular grades of specially denatured alcohol.

Excise Warehouses

Marginal note:Issuance of licence

• 19 (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person who is not a retailer of alcohol authorizing the person to possess in their excise warehouse non-duty-paid packaged alcohol or manufactured tobacco or cigars that are not stamped.

• Marginal note:Eligible retailers of alcohol

  (2) Even if they are retailers of alcohol, the following persons may be issued an excise warehouse licence under subsection (1):

  • (a) an alcohol licensee;

  • (b) a liquor authority; and

  • (c) any person who supplies goods in accordance with the Ships’ Stores Regulations.

Special Excise Warehouses

Marginal note:Issuance of licence

• 20 (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative manufactured tobacco or cigars manufactured by the licensee.

• Marginal note:Single licence

  (2) The Minister shall not issue to the same person more than one special excise warehouse licence.

• Marginal note:Licence limited to one premises

  (3) The Minister shall not specify more than one premises of a special excise warehouse licensee as a special excise warehouse.

Marginal note:Return of tobacco

• 21 (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars manufactured by the tobacco licensee,

  • (a) the person shall immediately return the tobacco or cigars of that licensee that are stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and

  • (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.

• Marginal note:Cancellation

  (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars.

Duty Free Shops

Marginal note:Issuance of licence

22 Subject to the regulations, the Minister may, on application, issue to a person who is licensed under the Customs Act to operate a duty free shop a licence authorizing the person to possess and sell imported manufactured tobacco that is subject to a special duty under section 53.

General

Marginal note:Refusal to issue licence or registration

• 23 (1) The Minister may refuse to issue a licence or registration to a person if the Minister has reason to believe

  • (a) that access to the person’s premises will be denied or impeded by any person; or

  • (b) that the refusal is otherwise in the public interest.

• Marginal note:Amendment or renewal

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence or registration.

• Marginal note:Cancellation, etc. — access to premises

  (2.1) The Minister may amend, suspend or cancel any licence or registration of a person if

  • (a) access to the premises of the licensee or registrant is denied or impeded by any person;

  • (a.1) in the case of a cannabis licence, a licence or permit issued to the person under subsection 62(1) of the Cannabis Act is amended, suspended or revoked; or

  • (b) it is otherwise in the public interest.

• Marginal note:Conditions imposed by Minister

  (3) On issuing a licence or registration, or at any later time, the Minister

  • (a) may, subject to the regulations, specify the activities that may be carried on under the licence or registration and the premises where those activities may be carried on;

  • (b) shall, in the case of a spirits licence, a tobacco licence or a cannabis licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

  • (c) may impose any other conditions that the Minister considers appropriate with respect to the carrying on of activities under the licence or registration.

Marginal note:Compliance with Act

24 A licensee or registrant shall not carry on any activity under their licence or registration otherwise than in accordance with this Act.

Marginal note:Licences and registrations not statutory instruments

24.1 For greater certainty, a licence or registration issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act.

PART 3Tobacco

Regulation of Tobacco

Marginal note:Manufacturing tobacco product without a licence prohibited

• 25 (1) No person shall, other than in accordance with a tobacco licence issued to the person, manufacture a tobacco product.

• Marginal note:Deemed manufacturer

  (2) A person who, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacture of a tobacco product is deemed to be manufacturing the tobacco product and the other person is deemed not to be manufacturing the tobacco product.

• Marginal note:Exception — manufacturing for personal use

  (3) An individual who is not a tobacco licensee may manufacture manufactured tobacco or cigars

  • (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the tobacco or cigars are for their personal use; or

  • (b) from raw leaf tobacco grown on land on which the individual resides, if

    • (i) the tobacco or cigars are for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and

    • (ii) the quantity of tobacco or cigars manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.

Marginal note:Issuance of excise stamps

• 25.1 (1) On application in the prescribed form and manner, the Minister may issue, to a tobacco licensee or a prescribed person who is importing tobacco products, stamps the purpose of which is to indicate that duty, other than special duty, has been paid on a tobacco product.

• Marginal note:Quantity of tobacco excise stamps

  (2) The Minister may limit the quantity of tobacco excise stamps that may be issued to a person under subsection (1).

• Marginal note:Security

  (3) No person shall be issued a tobacco excise stamp unless the person has provided security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations.

• Marginal note:Supply of tobacco excise stamps

  (4) The Minister may authorize a producer of tobacco excise stamps to supply, on the direction of the Minister, tobacco excise stamps to a person who is issued those stamps under subsection (1).

• Marginal note:Design and construction

  (5) The design and construction of tobacco excise stamps shall be subject to the approval of the Minister.

Marginal note:Counterfeiting tobacco excise stamps

25.2 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a tobacco excise stamp.

Marginal note:Unlawful possession of tobacco excise stamps

• 25.3 (1) No person shall possess a tobacco excise stamp that has not been affixed to a tobacco product or its container in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty, other than special duty, has been paid on the product.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a tobacco excise stamp by

  • (a) the person who lawfully produced the tobacco excise stamp;

  • (b) the person who is issued the tobacco excise stamp;

  • (c) a sufferance warehouse licensee who possesses the tobacco excise stamp in their sufferance warehouse on behalf of a person described under paragraph (b); or

  • (d) a prescribed person.

Marginal note:Unlawful supply of tobacco excise stamps

25.4 No person shall dispose of, sell or otherwise supply, or offer to supply, a tobacco excise stamp otherwise than in accordance with this Act.

Marginal note:Cancellation, return and destruction of tobacco excise stamps

25.5 The Minister may

• (a) cancel a tobacco excise stamp that has been issued; and

• (b) direct that it be returned or destroyed in a manner specified by the Minister.

Marginal note:Tobacco dealer

26 No person shall carry on the activity of a tobacco dealer except in accordance with a tobacco dealer’s licence issued to the person.

Marginal note:Unlawful packaging or stamping

27 No person shall package or stamp any raw leaf tobacco or tobacco product unless the person

• (a) is a tobacco licensee; or

• (b) is the importer or owner of the tobacco or product and it has been placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Unlawful removal

• 28 (1) Except as permitted under section 40, no person shall remove raw leaf tobacco or a tobacco product from the premises of a tobacco licensee unless the tobacco or product is packaged and

  • (a) if the product is intended for the duty-paid market, it is stamped; or

  • (b) if the product is not intended for the duty-paid market, all tobacco markings that are required under this Act to be printed on or affixed to its container are so printed or affixed.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a tobacco licensee who removes from their premises

  • (a) raw leaf tobacco for

    • (i) return to a licensed tobacco dealer or a tobacco grower,

    • (ii) delivery to another tobacco licensee, or

    • (iii) export; or

  • (b) partially manufactured tobacco for delivery to another tobacco licensee or for export.

Marginal note:Unlawful removal from premises of tobacco dealer

• 28.1 (1) No person shall remove raw leaf tobacco from the premises of a licensed tobacco dealer.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a licensed tobacco dealer who removes from their premises raw leaf tobacco for

  • (a) return to a tobacco grower;

  • (b) delivery to a tobacco licensee or to another licensed tobacco dealer; or

  • (c) export.

Marginal note:Prohibition — certain tobacco products for sale, etc.

29 No person shall purchase or receive for sale a tobacco product

• (a) from a manufacturer who the person knows, or ought to know, is not a tobacco licensee;

• (b) that is required under this Act to be packaged and stamped unless it is so packaged and stamped; or

• (c) that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Selling, etc., unstamped raw leaf tobacco

• 30 (1) No person shall dispose of, sell, offer for sale, purchase or have in their possession raw leaf tobacco unless the tobacco is packaged and stamped.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a person who is a tobacco licensee or a licensed tobacco dealer; or

  • (b) the possession of raw leaf tobacco

    • (i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse,

    • (ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province, or

    • (iii) by a prescribed person who is transporting the tobacco under prescribed circumstances and conditions.

  • (c) [Repealed, 2007, c. 18, s. 77]

Marginal note:Exceptions to sections 26 and 30

31 A tobacco grower does not contravene section 26 or 30 by reason only that the grower deals in or has in their possession raw leaf tobacco

• (a) grown by the grower on their property for sale to a tobacco licensee or a licensed tobacco dealer or for other disposition to a tobacco licensee, if the tobacco is either on the grower’s property or is being transported by the grower

  • (i) in connection with the curing of the tobacco,

  • (ii) for delivery to or return from a tobacco licensee or a licensed tobacco dealer, or

  • (iii) for delivery to or return from a body established under provincial law for the marketing of raw leaf tobacco grown in the province;

• (b) grown by any other person, if the grower operates a tobacco drying kiln on the grower’s property and the grower’s possession is solely for the purpose of curing the tobacco and returning it to the other person immediately after completion of the curing process or exporting it in accordance with paragraph (c); or

• (c) that is to be exported, if the grower has the written approval of the Minister and complies with any conditions that the Minister considers appropriate.

Marginal note:Unlawful possession or sale of tobacco products

• 32 (1) No person shall sell, offer for sale or have in their possession a tobacco product unless it is stamped.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a tobacco product by

  • (a) a tobacco licensee at the place of manufacture of the product;

  • (a.1) in the case of manufactured tobacco or cigars, a tobacco licensee who manufactured the tobacco or cigars, at their excise warehouse;

  • (b) in the case of cigars or imported manufactured tobacco, an excise warehouse licensee at the excise warehouse of the licensee;

  • (c) in the case of manufactured tobacco or cigars, a special excise warehouse licensee at the special excise warehouse of the licensee, if the licensee is permitted under this Act to distribute the tobacco or cigars;

  • (d) in the case of an imported tobacco product, a prescribed person who is transporting the product under prescribed circumstances and conditions;

  • (d.1) in the case of manufactured tobacco or cigars manufactured in Canada, a prescribed person who is transporting the tobacco or cigars under prescribed circumstances and conditions;

  • (e) in the case of an imported tobacco product, a sufferance warehouse licensee in their sufferance warehouse;

  • (e.1) in the case of imported manufactured tobacco or cigars, a customs bonded warehouse licensee in their customs bonded warehouse;

  • (f) in the case of cigars, a duty free shop licensee in their duty free shop;

  • (g) in the case of imported manufactured tobacco, a duty free shop licensee in their duty free shop if the licensee holds a licence issued under section 22;

  • (h) in the case of manufactured tobacco or cigars, an accredited representative for their personal or official use;

  • (i) in the case of cigars or imported manufactured tobacco, a person as ships’ stores if the acquisition and possession of the product by that person are in accordance with the Ships’ Stores Regulations;

  • (j) an individual who has imported the product for their personal use in quantities not in excess of prescribed limits; or

  • (k) in the case of manufactured tobacco or cigars, an individual who has manufactured the tobacco or cigars in accordance with subsection 25(3).

• Marginal note:Exceptions — sale or offer for sale

  (3) Subsection (1) does not apply where

  • (a) a tobacco licensee sells or offers to sell manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;

  • (b) a tobacco licensee sells or offers to sell

    • (i) manufactured tobacco or cigars to a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars,

    • (ii) manufactured tobacco or cigars to an accredited representative for their personal or official use,

    • (iii) cigars to an excise warehouse licensee for delivery as ships’ stores in accordance with the Ships’ Stores Regulations,

    • (iv) cigars to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (v) cigars as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (c) a special excise warehouse licensee sells or offers to sell manufactured tobacco or cigars to an accredited representative for their personal or official use, if the licensee is permitted under this Act to distribute the tobacco or cigars;

  • (d) an excise warehouse licensee sells or offers to sell

    • (i) imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act,

    • (ii) imported manufactured tobacco or cigars to an accredited representative for their personal or official use or to a duty free shop, or

    • (iii) cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (e) a duty free shop licensee sells or offers to sell cigars in accordance with the Customs Act;

  • (f) a duty free shop licensee who holds a licence issued under section 22 sells or offers to sell imported manufactured tobacco in accordance with the Customs Act;

  • (g) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;

  • (h) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars

    • (i) to an accredited representative for their personal or official use,

    • (ii) to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (iii) as ships’ stores in accordance with the Ships’ Stores Regulations; and

  • (i) a person sells or offers for sale cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations.

Marginal note:Prohibition — possession of tobacco manufacturing equipment

• 32.1 (1) No person shall possess tobacco manufacturing equipment with the intent of manufacturing a tobacco product unless

  • (a) the person is a tobacco licensee; or

  • (b) the person is an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3).

• Marginal note:Prohibition — importation of tobacco manufacturing equipment

  (2) No person shall import tobacco manufacturing equipment unless

  • (a) the person is a tobacco licensee;

  • (b) the equipment is designed for use by an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3) and is not designed for commercial manufacturing;

  • (c) the person provides evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that the equipment is imported

    • (i) on a tobacco licensee’s behalf,

    • (ii) for the sole purpose of maintenance, alteration or repair in Canada, if the equipment is intended to be exported immediately after the maintenance, alteration or repair is completed,

    • (iii) by or on behalf of a person who carries on a business of supplying that equipment, or

    • (iv) for in-transit movement through Canada; or

  • (d) it is imported in prescribed circumstances or under prescribed terms and conditions.

Marginal note:No sale or distribution except in original package

33 No person shall

• (a) sell or offer for sale cigars otherwise than in or from the original package;

• (b) sell or offer for sale manufactured tobacco otherwise than in the original package; or

• (c) distribute free of charge for advertising purposes any tobacco product otherwise than in or from the original package.

Marginal note:Packaging and stamping of tobacco

34 A tobacco licensee who manufactures a tobacco product shall not enter the tobacco product into the duty-paid market unless

• (a) the product has been packaged by the licensee;

• (b) the package has printed on it prescribed information; and

• (c) the product is stamped at the time of packaging.

Marginal note:Packaging and stamping of imported tobacco

• 35 (1) If a tobacco product or raw leaf tobacco is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,

  • (a) be packaged in a package that has printed on it prescribed information; and

  • (b) be stamped.

• Marginal note:Exception for certain importations

  (2) Subsection (1) does not apply to

  • (a) partially manufactured tobacco that is imported by a tobacco licensee for further manufacturing by the licensee;

  • (b) manufactured tobacco or cigars that a tobacco licensee is authorized to import under subsection 41(2);

  • (c) a tobacco product that is imported by an individual for their personal use in quantities not in excess of prescribed limits; or

  • (d) raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.

Marginal note:Absence of stamping — notice

36 The absence of stamping on a tobacco product is notice to all persons that duty has not been paid on the product.

Marginal note:Unstamped products to be warehoused

37 If manufactured tobacco or cigars manufactured in Canada are not stamped by a tobacco licensee, the tobacco licensee shall immediately enter the tobacco or cigars into the licensee’s excise warehouse.

Marginal note:No warehousing of tobacco without markings

• 38 (1) Subject to subsections (3) and (4), no person shall enter into an excise warehouse a container of manufactured tobacco or cigars unless the container has printed on it or affixed to it tobacco markings and other prescribed information.

• Marginal note:No delivery of imported tobacco without markings

  (2) Subject to subsections (2.1) and (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to

  • (a) a duty free shop for sale or offer for sale in accordance with the Customs Act;

  • (b) an accredited representative; or

  • (c) a customs bonded warehouse.

• Marginal note:Delivery of imported stamped tobacco

  (2.1) A container of imported manufactured tobacco that was manufactured outside Canada and is stamped may be delivered to

  • (a) a duty free shop for sale or offer for sale in accordance with the Customs Act; or

  • (b) a customs bonded warehouse.

• Marginal note:Exception for prescribed manufactured tobacco

  (3) A container of manufactured tobacco does not require tobacco markings to be printed on or affixed to it if the brand of the tobacco is not commonly sold in Canada and is prescribed.

• Marginal note:Exception for prescribed cigarettes

  (4) A container of cigarettes does not require tobacco markings to be printed on or affixed to it if the cigarettes are of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada and

  • (a) cigarettes of the particular type or formulation exported under that brand are prescribed cigarettes; and

  • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

• Marginal note:Distinguishing different cigarettes

  (5) For the purpose of subsection (4), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

Marginal note:Non-compliant imports

39 If an imported tobacco product or imported raw leaf tobacco intended for the duty-paid market is not stamped when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Removal of raw leaf tobacco or waste tobacco

• 40 (1) No person other than a tobacco licensee shall remove raw leaf tobacco or tobacco that is waste from the premises of the licensee.

• Marginal note:Removal requirements

  (2) If raw leaf tobacco or tobacco that is waste is removed from the premises of a tobacco licensee, the licensee shall deal with the tobacco in the manner authorized by the Minister.

Marginal note:Re-working or destruction of tobacco

• 41 (1) A tobacco licensee may re-work or destroy a tobacco product in the manner authorized by the Minister.

• Marginal note:Importation for re-working or destruction

  (2) The Minister may authorize a tobacco licensee to import any manufactured tobacco or cigars manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Duty on Tobacco

Marginal note:Imposition

• 42 (1) Duty is imposed on tobacco products manufactured in Canada or imported and on imported raw leaf tobacco at the rates set out in Schedule 1 and is payable

  • (a) in the case of tobacco products manufactured in Canada, by the tobacco licensee who manufactured the tobacco products, at the time they are packaged; and

  • (b) in the case of imported tobacco products or raw leaf tobacco, by the importer, owner or other person who is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or who would be liable to pay that duty on the tobacco or products if they were subject to that duty.

• Marginal note:Imported partially manufactured tobacco

  (2) The following rules apply to partially manufactured tobacco that is imported by a tobacco licensee for further manufacture:

  • (a) for the purposes of this Act, the tobacco is deemed to be manufactured in Canada by the licensee; and

  • (b) paragraph (1)(a) applies to the tobacco and paragraph (1)(b) and section 44 do not apply.

Marginal note:Additional duty on cigars

43 In addition to the duty imposed under section 42, duty is imposed on cigars at the rates set out in Schedule 2 and is payable

• (a) in the case of cigars manufactured and sold in Canada, by the tobacco licensee who manufactured the cigars, at the time of their delivery to a purchaser; and

• (b) in the case of imported cigars, by the importer, owner or other person who is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or who would be liable to pay that duty on the cigars if they were subject to that duty.

Marginal note:Definition of inflationary adjusted year

• 43.1 (1) In this section, inflationary adjusted year means 2019 and every year after that year.

• Marginal note:Annual adjustments

  (2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

  • (a) the rate determined by the formula

    A × B

    where

    A

    is the rate of duty applicable to the tobacco product on March 31 of the inflationary adjusted year, and

    B

    is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

    C/D

    where

    C

    is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

    D

    is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year; and

  • (b) the rate of duty referred to in the description of A in paragraph (a).

• Marginal note:Rounding

  (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-hundred-thousandth or, if the adjusted rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

• Marginal note:Consumer Price Index

  (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

  • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

  • (b) dividing the aggregate obtained under paragraph (a) by 12; and

  • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

Marginal note:Application of Customs Act

44 The duties imposed under sections 42 and 43 on imported raw leaf tobacco and tobacco products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Duty relieved

• 45 (1) The duties imposed under sections 42 and 43 are relieved on a tobacco product that is not stamped.

• Marginal note:Tobacco imported by an individual for personal use

  (2) Subsection (1) does not apply to the importation of tobacco products by an individual for their personal use to the extent that the quantity of the products imported exceeds the quantity permitted under Chapter 98 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to be imported without the payment of duties (as defined in Note 4 to that Chapter).

Marginal note:Duty relieved — raw leaf tobacco

46 The duty imposed under section 42 is relieved on raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.

Marginal note:Duty relieved — stamped tobacco imported by individual

• 47 (1) The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured in Canada and is stamped.

• Marginal note:Duty relieved — reimportation of stamped tobacco by individual

  (2) The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured outside Canada, was previously imported into Canada and is stamped.

Marginal note:Duty relieved — importation for destruction

48 The duty imposed under paragraph 42(1)(b) is relieved on stamped manufactured tobacco that was manufactured in Canada by a tobacco licensee and that is imported by the licensee for re-working or destruction in accordance with section 41.

Excise Warehouses

Marginal note:Restriction — entering tobacco

49 No person shall enter into an excise warehouse

• (a) a tobacco product that is stamped; or

• (b) any other tobacco product except in accordance with this Act.

Marginal note:Definitions

• 50 (1) The definitions in this subsection apply in this section.

  Canadian manufactured tobacco

  Canadian manufactured tobacco means manufactured tobacco that is manufactured in Canada but does not include partially manufactured tobacco or foreign brand tobacco. (tabac fabriqué canadien)

  foreign brand tobacco

  foreign brand tobacco means manufactured tobacco in respect of which the special duty imposed under section 56 is relieved because of section 58. (tabac de marque étrangère)

• Marginal note:Categories of Canadian manufactured tobacco

  (2) For the purposes of subsection (5), each of the following constitutes a category of Canadian manufactured tobacco:

  • (a) cigarettes;

  • (b) tobacco sticks; and

  • (c) manufactured tobacco other than cigarettes and tobacco sticks.

• Marginal note:Prohibition on removal

  (3) No person shall remove from an excise warehouse or a special excise warehouse manufactured tobacco or cigars manufactured in Canada.

• Marginal note:Exception for Canadian manufactured tobacco

  (4) Subject to the regulations, Canadian manufactured tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is

  • (a) for export by the licensee in accordance with subsection (5) and not for delivery to a foreign duty free shop or as foreign ships’ stores;

  • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the Canadian manufactured tobacco; or

  • (c) for delivery to an accredited representative for their personal or official use.

• Marginal note:Maximum quantity permitted to be exported from excise warehouse

  (5) A tobacco licensee shall not, at a particular time in a calendar year, remove a particular quantity of a category of Canadian manufactured tobacco from the licensee’s excise warehouse for export if the total quantity of that category removed in the year up to that time by the licensee from the warehouse for export, plus the particular quantity, exceeds 1.5% of the total quantity of that category manufactured by the licensee in the preceding calendar year.

• Marginal note:Quantities to be excluded for the purposes of subsection (5)

  (6) In subsection (5), the total quantity of a category of Canadian manufactured tobacco manufactured by a licensee in the preceding calendar year does not include any quantity of that category that was exported by the licensee for delivery to a foreign duty free shop or as foreign ships’ stores.

• Marginal note:Exception for cigars

  (7) Subject to the regulations, cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them only if they are

  • (a) for export by the licensee in accordance with this Act;

  • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the cigars;

  • (c) for delivery to an accredited representative for their personal or official use;

  • (d) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (e) for delivery to another excise warehouse, if the excise warehouse licensee of the other excise warehouse certifies in the prescribed form to the tobacco licensee that the cigars are for delivery as ships’ stores in accordance with the Ships’ Stores Regulations; or

  • (f) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act.

• Marginal note:Exception for partially manufactured tobacco or foreign brand tobacco

  (8) Subject to the regulations, partially manufactured tobacco or foreign brand tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is exported by the licensee and not for delivery to a foreign duty free shop or as foreign ships’ stores.

• Marginal note:Removal from warehouse — ships’ stores

  (9) Subject to the regulations, cigars manufactured in Canada may be removed from an excise warehouse referred to in paragraph (7)(e) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations.

• Marginal note:Removal from warehouse for re-working or destruction

  (10) Subject to the regulations, manufactured tobacco or cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 41.

• Marginal note:Removal from special excise warehouse — accredited representatives

  (11) Subject to the regulations, Canadian manufactured tobacco and cigars may be removed from a special excise warehouse for delivery to an accredited representative for their personal or official use if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars.

Marginal note:Removal of imported tobacco

• 51 (1) No person shall remove imported manufactured tobacco or cigars from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, imported manufactured tobacco or cigars may be removed from an excise warehouse

  • (a) for delivery to another excise warehouse;

  • (b) for delivery to an accredited representative for their personal or official use;

  • (c) for delivery as ships’ stores, in accordance with the Ships’ Stores Regulations;

  • (d) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act; or

  • (e) for export in accordance with this Act by the excise warehouse licensee.

Marginal note:Restriction — special excise warehouse

52 No special excise warehouse licensee shall store manufactured tobacco or cigars that are manufactured in Canada in their special excise warehouse for any purpose other than the sale and distribution of the tobacco or cigars to an accredited representative for the personal or official use of the representative.

Special Duties on Tobacco Products

Marginal note:Special duty on imported manufactured tobacco delivered to duty free shop

• 53 (1) A special duty is imposed, at the rates set out in section 1 of Schedule 3, on imported manufactured tobacco that is delivered to a duty free shop and that is not stamped.

• Marginal note:When and by whom duty is payable

  (2) The special duty is payable at the time of delivery and is payable by the duty free shop licensee.

Meaning of traveller’s tobacco

• 54 (1) In this section, traveller’s tobacco means manufactured tobacco that is imported by a person at any time and

  • (a) is classified under tariff item No. 9804.10.00, 9804.20.00, 9805.00.00 or 9807.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; or

  • (b) would be classified under tariff item No. 9804.10.00 or 9804.20.00 in that List but for the fact that the total value for duty as determined under section 46 of the Customs Act of all goods imported by the person at that time exceeds the maximum value specified in that tariff item.

• Marginal note:Special duty on traveller’s tobacco

  (2) A special duty is imposed on traveller’s tobacco at the time it is imported at the rates set out in section 2 of Schedule 3.

• Marginal note:When and how duty is payable

  (3) The special duty shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the special duty were a duty levied under section 20 of the Customs Tariff, and for those purposes, the Customs Act applies with any modifications that the circumstances require.

• Marginal note:Exception

  (4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if duty under section 42 was previously imposed on the tobacco and the tobacco is stamped.

Definition of tobacco product

55 In sections 56 to 58, tobacco product means manufactured tobacco other than partially manufactured tobacco.

Marginal note:Imposition

• 56 (1) A special duty is imposed on a tobacco product that is manufactured in Canada and exported

  • (a) if the export is in accordance with paragraph 50(4)(a) by the tobacco licensee who manufactured it, at the rates set out in section 3 of Schedule 3; or

  • (b) in any other case, at the rates set out in section 4 of Schedule 3.

• Marginal note:When and by whom duty is payable

  (2) Subject to sections 57 and 58, the special duty is payable, at the time the tobacco product is exported, by

  • (a) if paragraph (1)(a) applies, the tobacco licensee who manufactured it; or

  • (b) if paragraph (1)(b) applies, the person who exported it.

Marginal note:Duty relieved — deliveries to a foreign duty free shop and as foreign ships’ stores

57 The special duty imposed under section 56 is relieved on a tobacco product that is exported by the tobacco licensee who manufactured it for delivery to a foreign duty free shop or as foreign ships’ stores.

Marginal note:Duty relieved — prescribed tobacco product

• 58 (1) The special duty imposed under section 56 is relieved on a tobacco product of a particular brand if

  • (a) the tobacco product of that brand is prescribed;

  • (b) during the three-year period before the year in which the tobacco product of that brand is exported, the tobacco product of that brand was not sold in Canada, other than in a duty free shop, except in quantities not significantly greater than the minimum quantities sufficient for the purposes of registering the trade mark for that brand; and

  • (c) during any year before the three-year period referred to in paragraph (b), sales in Canada of the product of that brand never exceeded

    • (i) 0.5% of total sales in Canada of similar products, or

    • (ii) if another percentage that is less than 0.5% is prescribed for the purposes of this subsection, that percentage of total sales in Canada of similar products.

• Marginal note:Duty relieved — prescribed cigarettes

  (2) The special duty imposed under section 56 is relieved on cigarettes of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada if

  • (a) cigarettes of the particular type or formulation exported under that brand are prescribed; and

  • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

• Marginal note:Distinguishing different cigarettes

  (3) For the purpose of subsection (2), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

PART 3.1Cigarette Inventory Tax

Marginal note:Definitions

58.1 The following definitions apply in this Part.

adjustment day

adjustment day means

• (a) March 23, 2017;

• (a.1) February 28, 2018; or

• (b) in the case of an inflationary adjusted year, April 1 of that year. (date d’ajustement)

inflationary adjusted year

inflationary adjusted year has the same meaning as in subsection 43.1(1). (année inflationniste)

loose tobacco

loose tobacco[Repealed, 2014, c. 20, s. 69]

separate retail establishment

separate retail establishment of a person means a shop or store of the person

• (a) that is geographically separate from other places of business of the person;

• (b) at which, in the ordinary course of the person’s business, the person regularly sells, otherwise than through vending machines, tobacco products to consumers, within the meaning of section 123 of the Excise Tax Act, attending at the shop or store; and

• (c) in respect of which separate records are maintained. (établissement de détail distinct)

taxed cigarettes

taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day, and that, at the beginning of the adjustment day,

• (a) were owned by that person for sale in the ordinary course of a business of the person;

• (b) were not held in a vending machine; and

• (c) were not relieved from that duty under this Act. (cigarettes imposées)

taxed tobacco

taxed tobacco[Repealed, 2014, c. 20, s. 69]

unit

unit[Repealed, 2014, c. 20, s. 69]

Marginal note:Imposition of tax — 2017 increase

• 58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of March 23, 2017 at the rate of $0.00265 per cigarette.

• Marginal note:Imposition of tax — 2018 increase

  (1.1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 28, 2018 at the rate of $0.011468 per cigarette.

• Marginal note:Imposition of tax — inflationary adjusted years

  (2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of April 1 of an inflationary adjusted year at a rate per cigarette equal to

  • (a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula

    (A – B)/5

    where

    A

    is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on April 1 of the inflationary adjusted year, and

    B

    is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on March 31 of the inflationary adjusted year; and

  • (b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula

    C – D

    where

    C

    is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on April 1 of the inflationary adjusted year, and

    D

    is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on March 31 of the inflationary adjusted year.

• Marginal note:Rounding

  (3) The amount determined under paragraph (2)(a) or (b) is to be rounded to the nearest one-hundred-thousandth or, if the amount is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

Marginal note:Exemption for small retail inventory

58.3 Tax under this Part in respect of the inventory of all taxed cigarettes of a person that is held at the beginning of an adjustment day at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer cigarettes.

Marginal note:Taking of inventory

58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed cigarettes held at the beginning of an adjustment day.

Marginal note:Returns

• 58.5 (1) Every person liable to pay tax under this Part shall file a return with the Minister in the prescribed form and manner on or before,

  • (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017;

  • (a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

  • (b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

• Marginal note:Separate returns

  (2) A person authorized under subsection 239(2) of the Excise Tax Act to file separate returns in respect of a separate branch or division may file separate returns under this Part in respect of that branch or division.

Marginal note:Payment

• 58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before

  • (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017;

  • (a.1) in the case of the tax imposed under subsection 58.2(1.1), April 30, 2018; or

  • (b) in the case of the tax imposed under subsection 58.2(2) in respect of an inflationary adjusted year, May 31 of the inflationary adjusted year.

• Marginal note:Minimum interest

  (2) No interest in respect of an amount payable by a person under this Part is payable if, at the time the person pays the amount, the total of that interest otherwise payable is less than $25.

• Marginal note:Extension

  (3) The Minister may at any time extend in writing the time for filing a return, or paying the tax payable, under this Part and, where the Minister so extends the time,

  • (a) the return shall be filed or tax payable shall be paid within the time as so extended; and

  • (b) interest is payable under section 170 as if the time had not been extended.

PART 4Alcohol

General

Marginal note:Application — Importation of Intoxicating Liquors Act

59 For greater certainty, the Importation of Intoxicating Liquors Act continues to apply to the importation, sending, taking and transportation of intoxicating liquor into a province.

Marginal note:Importations involving a provincial authority

59.1 If alcohol is imported under circumstances in which subsection 3(1) of the Importation of Intoxicating Liquors Act applies, the alcohol is deemed, for the purposes of this Act and subsection 21.2(3) of the Customs Tariff, to have been imported by the person who would have been the importer in the absence of that subsection 3(1) and not by Her Majesty in right of a province or a liquor authority.

Marginal note:Prohibition — production and packaging of spirits

• 60 (1) No person shall, except in accordance with a spirits licence issued to the person, produce or package spirits.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) the packaging of spirits from a marked special container by a purchaser at a bottle-your-own premises; or

  • (b) the production of spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

Marginal note:Prohibition — possession of still

61 No person shall possess a still or other equipment suitable for the production of spirits with the intent of producing spirits unless the person

• (a) is a spirits licensee;

• (b) has a pending application for a spirits licence; or

• (c) possesses the still or equipment solely for the purpose of producing spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

Marginal note:Prohibition — production and packaging of wine

• 62 (1) No person shall, except in accordance with a wine licence issued to the person, produce or package wine.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) the production of wine by an individual for their personal use;

  • (b) the packaging of wine referred to in paragraph (a) by an individual for their personal use; or

  • (c) the packaging of wine from a marked special container by a purchaser at a bottle-your-own premises.

Marginal note:Prohibition — fortification of wine

62.1 Except as permitted under section 130, no person shall use bulk spirits to fortify bulk wine.

Marginal note:Prohibition — sale of wine produced for personal use

63 No person shall sell or put to a commercial use wine that was produced, or produced and packaged, by an individual for their personal use.

Marginal note:Wine produced by individual

64 For the purposes of this Act, wine is not produced or packaged by an individual if it has been produced or packaged by a person acting on their behalf.

Marginal note:Prohibition — ferment-on-premises facility

65 No person shall carry on at a ferment-on-premises facility any activity specified in a licence or registration issued under this Act other than an activity specified in a ferment-on-premises registration.

Marginal note:Application — in-transit and transhipped alcohol

66 Sections 67 to 72, 75, 76, 80, 85, 88, 97 to 100 and 102 do not apply to imported alcohol or specially denatured alcohol that is, in accordance with the Customs Act, the Customs Tariff and the regulations made under those Acts,

• (a) transported by a customs bonded carrier from a place outside Canada to another place outside Canada;

• (b) stored in a customs bonded warehouse or sufferance warehouse for subsequent delivery to a place outside Canada; or

• (c) transported by a customs bonded carrier

  • (i) from a place outside Canada to a customs bonded warehouse or a sufferance warehouse for subsequent delivery to a place outside Canada, or

  • (ii) from a customs bonded warehouse or a sufferance warehouse to a place outside Canada.

Marginal note:Prohibition — sale of alcohol

67 No person shall sell

• (a) bulk alcohol unless it was produced or imported in accordance with this Act;

• (b) packaged alcohol unless it was, in accordance with this Act,

  • (i) produced and packaged in Canada,

  • (ii) imported and packaged in Canada, or

  • (iii) imported; or

• (c) a marked special container of alcohol unless it was marked in accordance with this Act.

Marginal note:Availability and sampling of imported DA and SDA

• 68 (1) Any person who imports a product that is reported under the Customs Act as being denatured alcohol or specially denatured alcohol shall make the product available for sampling and the product is required to be sampled by the Minister of Public Safety and Emergency Preparedness before it is released under that Act.

• Marginal note:Testing

  (2) The samples must be tested to verify that the product is denatured alcohol or specially denatured alcohol.

• Marginal note:Minister may waive

  (3) The Minister of Public Safety and Emergency Preparedness may at any time waive the requirement to sample an imported product under subsection (1).

• Marginal note:Fees

  (4) The Minister of Public Safety and Emergency Preparedness may fix fees to be paid by the importer of the product but those fees must not exceed an amount determined by that Minister to be the costs to Her Majesty in respect of the sampling and testing.

Bulk Alcohol

Marginal note:Prohibition — ownership of bulk alcohol

69 No person shall own bulk alcohol unless it was produced or imported in accordance with this Act.

Marginal note:Prohibition — possession

• 70 (1) No person shall possess bulk alcohol.

• Marginal note:Exception

  (2) Subsection (1) does not apply

  • (a) to a spirits licensee or a licensed user who possesses bulk spirits that were produced or imported by a spirits licensee;

  • (b) to a wine licensee or a licensed user who possesses bulk wine that was produced or imported by a wine licensee;

  • (c) to a licensed user who possesses bulk alcohol that was imported by the licensed user;

  • (c.1) in the case of bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol, to a person who, having produced those spirits, possesses them during the period of analysis;

  • (d) to an alcohol registrant who possesses, for the purposes of storage or transportation, bulk alcohol that was produced by an alcohol licensee or imported by an alcohol licensee or licensed user;

  • (e) to a sufferance warehouse licensee who possesses in their sufferance warehouse bulk alcohol that was imported by a person permitted to do so under this Act;

  • (f) to a ferment-on-premises registrant who possesses bulk wine that was produced at the registrant’s ferment-on-premises facility by an individual for the individual’s personal use; or

  • (g) to an individual who possesses less than 500 L of bulk wine that was lawfully produced at a residence or a ferment-on-premises facility for an individual’s personal use.

Marginal note:Prohibition — supply of spirits

71 No person shall give possession of bulk spirits to a person other than a spirits licensee, a licensed user or an alcohol registrant.

Marginal note:Prohibition — supply of wine

• 72 (1) No person shall give possession of bulk wine to a person other than a wine licensee, a licensed user or an alcohol registrant.

• Marginal note:Exception

  (2) Subsection (1) does not apply to an individual who, in connection with their personal use of it, gives possession of bulk wine lawfully produced by an individual for their personal use.

Marginal note:Restriction — licensed user

73 A licensed user shall not use or dispose of bulk alcohol other than to

• (a) use it in an approved formulation;

• (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

• (c) use it to produce vinegar;

• (d) use it in accordance with section 130, 131 or 131.1;

• (e) return it to

  • (i) in the case of alcohol returned in circumstances to which paragraph 105(1)(a) or 114(1)(a) applies, a licensee referred to in that paragraph, or

  • (ii) in any other case, the alcohol licensee who supplied it;

• (f) subject to section 76, export it;

• (g) use it for analysis in a manner approved by the Minister; or

• (h) destroy it in a manner approved by the Minister.

Marginal note:Disposal of bulk spirits

74 A person who possesses bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol shall, immediately after the analysis is complete, destroy or dispose of the spirits in a manner approved by the Minister.

Marginal note:Importation — bulk spirits

• 75 (1) No person shall import bulk spirits other than a spirits licensee, a licensed user or, if the spirits are in a special container, an excise warehouse licensee in accordance with section 80.

• Marginal note:Importation — bulk wine

  (2) No person shall import bulk wine other than a wine licensee, a licensed user or, if the wine is in a special container, an excise warehouse licensee in accordance with section 85.

Marginal note:Unauthorized export

76 No person shall export bulk alcohol other than

• (a) the alcohol licensee who is responsible for the alcohol;

• (b) the licensed user who imported the alcohol; or

• (c) a person required to do so under section 101.

Special Containers of Spirits

Marginal note:Marked container deemed packaged

77 If a special container of spirits is marked, the spirits are deemed to be packaged at the time the container is marked.

Marginal note:Marking

• 78 (1) No person shall mark a special container of spirits unless

  • (a) the person is a spirits licensee; or

  • (b) the container is one that has been placed in a sufferance warehouse in accordance with section 80 and the person marks the container in the circumstances described in that section.

• Marginal note:Container to be warehoused

  (2) If a spirits licensee marks a special container of spirits, the licensee shall immediately enter it into an excise warehouse.

Marginal note:Importation

79 No person, other than an excise warehouse licensee, shall import a marked special container of spirits.

Marginal note:Marking of imported container

80 If a special container of spirits that is imported by an excise warehouse licensee is not marked when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being marked.

Marginal note:Imported container to be warehoused

81 If a marked special container of spirits is released under the Customs Act, the excise warehouse licensee who imported it shall immediately enter it into their excise warehouse.

Special Containers of Wine

Marginal note:Marked container deemed packaged

82 If a special container of wine is marked, the wine is deemed to be packaged at the time the container is marked.

Marginal note:Marking

• 83 (1) No person shall mark a special container of wine unless

  • (a) the person is a wine licensee; or

  • (b) the container is one that has been placed in a sufferance warehouse in accordance with section 85 and the person marks the container in the circumstances described in that section.

• Marginal note:Container to be warehoused

  (2) If a wine licensee marks a special container of wine, the licensee shall immediately enter it into an excise warehouse.

Marginal note:Importation

84 No person, other than an excise warehouse licensee, shall import a marked special container of wine.

Marginal note:Marking of imported container

85 If a special container of wine that is imported by an excise warehouse licensee is not marked when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being marked.

Marginal note:Imported container to be warehoused

86 If a marked special container of wine is released under the Customs Act, the excise warehouse licensee who imported it shall immediately enter it into their excise warehouse.

Packaged Alcohol

Marginal note:Information on container

87 Every alcohol licensee who packages alcohol shall cause all prescribed information to be displayed on the container containing the alcohol and on any packaging encasing the container

• (a) in the case of wine that is entered into an excise warehouse immediately after it is packaged, before the wine is removed from the warehouse;

• (a.1) in the case of wine on which duty is not imposed because of paragraph 135(2)(a), before the wine is

  • (i) removed from the licensee’s premises,

  • (ii) consumed, or

  • (iii) made available for sale on the premises; and

• (b) in any other case, immediately after the alcohol is packaged.

Marginal note:Prohibition — possession

• 88 (1) No person shall possess non-duty-paid packaged alcohol.

• Marginal note:Exception

  (2) Non-duty-paid packaged alcohol, other than alcohol in a marked special container,

  • (a) that is packaged by an alcohol licensee or imported by an excise warehouse licensee may be possessed by

    • (i) an excise warehouse licensee in their excise warehouse,

    • (ii) a licensed user in their specified premises,

    • (iii) a registered user for use in accordance with their registration,

    • (iv) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions,

    • (v) a duty free shop licensee, in their duty free shop,

    • (vi) an accredited representative, for their personal or official use, or

    • (vii) a person as ships’ stores, if the acquisition and possession of the alcohol by that person are in accordance with the Ships’ Stores Regulations;

  • (b) that is imported may be possessed by a sufferance warehouse licensee, in their sufferance warehouse;

  • (c) that is imported by a licensed user may be possessed by

    • (i) the licensed user in their specified premises, or

    • (ii) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (d) that is imported by an accredited representative may be possessed by

    • (i) the accredited representative, for their personal or official use, or

    • (ii) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (e) that is imported for sale in a duty free shop, for sale to an accredited representative or for use as ships’ stores, may be possessed by

    • (i) a customs bonded warehouse licensee, in their customs bonded warehouse,

    • (ii) a duty free shop licensee, in their duty free shop,

    • (iii) an accredited representative, for their personal or official use,

    • (iv) a customs bonded carrier in accordance with the Customs Act, or

    • (v) a person as ships’ stores, if the acquisition and possession of the alcohol by that person are in accordance with the Ships’ Stores Regulations;

  • (f) that is imported for supply to an air carrier that is licensed under section 69 or 73 of the Canada Transportation Act to operate an international air service may be possessed by a customs bonded warehouse licensee, in their customs bonded warehouse;

  • (g) that is imported by an individual in accordance with the Customs Act and the Customs Tariff for their personal use may be possessed by an individual;

  • (h) that is wine that is produced and packaged by an individual for their personal use may be possessed by an individual;

  • (i) that is wine referred to in paragraph 135(2)(a) or (b) may be possessed by any person; and

  • (j) that is wine produced or packaged by a wine licensee and removed from the excise warehouse of the licensee and that is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine may be possessed by the licensee or those individuals at those premises.

• Marginal note:Exception — special containers

  (3) A non-duty-paid marked special container of alcohol may be possessed by

  • (a) an excise warehouse licensee in their excise warehouse;

  • (b) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (c) in the case of an imported special container of alcohol, a sufferance warehouse licensee in their sufferance warehouse; or

  • (d) in the case of a special container of spirits that is marked for delivery to and use by a registered user, a registered user for use in accordance with their registration.

Marginal note:Storage

89 A ferment-on-premises registrant shall not store packaged wine at their ferment-on-premises facility.

Marginal note:Restriction — licensed user

90 A licensed user shall not use or dispose of non-duty-paid packaged alcohol other than to

• (a) use it in an approved formulation;

• (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

• (c) use it to produce vinegar;

• (d) return it under prescribed conditions to the excise warehouse licensee who supplied it;

• (e) export it, if the alcohol was imported by the licensed user;

• (f) use it for analysis in a manner approved by the Minister; or

• (g) destroy it in a manner approved by the Minister.

Marginal note:Restriction — registered user

91 A registered user shall not use or dispose of non-duty-paid packaged spirits other than to

• (a) use them in accordance with their registration;

• (b) use them for analysis in a manner approved by the Minister;

• (c) return them under prescribed conditions to the excise warehouse licensee who supplied them; or

• (d) destroy them in a manner approved by the Minister.

Marginal note:Unauthorized removal — spirits

• 92 (1) No person shall remove spirits from a marked special container of spirits other than

  • (a) a registered user, in the case of a container that is marked for delivery to and use by a registered user; and

  • (b) a purchaser of the spirits at a bottle-your-own premises, in the case of a container that is marked for delivery to and use at a bottle-your-own premises.

• Marginal note:Removal of spirits from returned container

  (2) If the operator of a bottle-your-own premises returns a marked special container of spirits to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the spirits from the container for the purpose of destroying the spirits in a manner approved by the Minister.

Marginal note:Unauthorized removal — wine

• 93 (1) No person shall remove wine from a marked special container of wine other than a purchaser of the wine at a bottle-your-own premises.

• Marginal note:Removal of wine from returned container

  (2) If the operator of a bottle-your-own premises returns a marked special container of wine to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the wine from the container for the purpose of destroying the wine in a manner approved by the Minister.

Restricted Formulations

Marginal note:Restriction — licensed user

93.1 A licensed user shall not use or dispose of a restricted formulation other than in accordance with the conditions or restrictions imposed by the Minister under section 143.

Marginal note:Prohibition — possession of restricted formulation

93.2 No person other than a licensed user or an alcohol registrant shall possess a restricted formulation.

Denatured Alcohol and Specially Denatured Alcohol

Marginal note:Prohibition — denaturing of spirits

94 No person, other than a spirits licensee, shall denature spirits.

Marginal note:Prohibition — sale as beverage

• 95 (1) No person shall sell or provide denatured alcohol or specially denatured alcohol for use in or as a beverage.

• Marginal note:Prohibition — use as beverage

  (2) No person shall use denatured alcohol or specially denatured alcohol in or as a beverage.

Marginal note:Prohibition — use of SDA

96 No person shall, except in accordance with a specially denatured alcohol registration issued to the person, use specially denatured alcohol.

Marginal note:Prohibition — possession of SDA

• 97 (1) No person shall possess specially denatured alcohol.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a spirits licensee or an SDA registrant who possesses specially denatured alcohol produced by a spirits licensee;

  • (b) a spirits licensee, an SDA registrant or a sufferance warehouse licensee who possesses specially denatured alcohol imported by a spirits licensee;

  • (c) an SDA registrant who possesses specially denatured alcohol that they imported;

  • (d) a sufferance warehouse licensee who possesses specially denatured alcohol imported by an SDA registrant; or

  • (e) an alcohol registrant who possesses specially denatured alcohol only for the purposes of its storage and transportation, if the alcohol was produced by a spirits licensee or imported by a spirits licensee or an SDA registrant.

Marginal note:Prohibition — supply of SDA

98 No person shall give possession of specially denatured alcohol to a person who is not a spirits licensee, an SDA registrant or an alcohol registrant.

Marginal note:Prohibition — sale of SDA

• 99 (1) No person shall sell specially denatured alcohol.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply where

  • (a) a spirits licensee sells specially denatured alcohol to another spirits licensee or to an SDA registrant; or

  • (b) an SDA registrant returns specially denatured alcohol in accordance with paragraph 103(a) or exports it in accordance with paragraph 103(b).

Marginal note:Prohibition — importing of SDA

100 No person shall import specially denatured alcohol other than a spirits licensee or an SDA registrant.

Marginal note:Spirits mistakenly imported as DA or SDA

• 101 (1) If a person, other than a spirits licensee or licensed user, who has imported a product that was reported under the Customs Act as being denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

  • (a) export it for return to the person from whom it was acquired; or

  • (b) dispose of or destroy it in the manner specified by the Minister.

• Marginal note:Spirits mistakenly possessed as DA or SDA

  (2) If a person, other than a spirits licensee, licensed user or alcohol registrant, who possesses a product that the person believed was denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

  • (a) return it to the spirits licensee who produced or supplied the product; or

  • (b) dispose of or destroy it in the manner specified by the Minister.

• Marginal note:If product used

  (3) If the person is unable to comply with subsection (1) or (2) in respect of an amount of the product because they had already used it in the production of another product before they learned that the product was not denatured alcohol or specially denatured alcohol, the person shall

  • (a) dispose of or destroy the other product in the manner specified by the Minister; and

  • (b) pay any penalty imposed under section 254 for which they are liable under section 244 in respect of the amount.

• Marginal note:Exception

  (4) Subsection (3) does not apply if

  • (a) the other product is not, in the opinion of the Minister, spirits;

  • (b) the Minister deems the other product to have been produced using denatured alcohol or specially denatured alcohol, as the case may be; and

  • (c) the person complies with any conditions imposed by the Minister.

Marginal note:Prohibition — exporting of SDA

102 No person shall export specially denatured alcohol other than the SDA registrant who imported it or a spirits licensee.

Marginal note:Restriction on disposal

103 An SDA registrant shall not dispose of specially denatured alcohol other than to

• (a) return it to the spirits licensee who supplied it;

• (b) export it, if it was imported by the SDA registrant; or

• (c) destroy it in a manner approved by the Minister.

Responsibility for Bulk Spirits

Marginal note:Responsibility

104 Subject to sections 105 to 107, 111 and 112, the person who is responsible for bulk spirits at any time is

• (a) the spirits licensee or licensed user who owns the spirits at that time;

• (b) if the spirits are not owned at that time by a spirits licensee or licensed user, the spirits licensee or licensed user who last owned them; or

• (c) if the spirits were never owned by a spirits licensee or licensed user, the spirits licensee who imported or produced them or the licensed user who imported them.

Marginal note:Return of spirits purchased from unlicensed person

• 105 (1) This section applies if a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the spirits,

  • (a) the purchaser returns the spirits to the spirits licensee who was responsible for them immediately before they were purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the spirits licensee who supplied them (in this section referred to as the “supplier”); and

  • (b) the ownership of the spirits reverts to the unlicensed person.

• Marginal note:Determination of person responsible for returned spirits

  (2) At the later of the time at which the previously responsible licensee or supplier receives the spirits and the time at which the ownership of the spirits reverts to the unlicensed person,

  • (a) the previously responsible licensee becomes again responsible for the spirits; and

  • (b) the purchaser of the spirits ceases to be responsible for them.

Marginal note:Exception — provincial ownership

106 If, at any time, the government of a province or a liquor authority that is a spirits licensee or a licensed user owns bulk spirits for a purpose not related to its licence, section 104 applies as though that ownership by the government or the liquor authority did not exist at that time.

Marginal note:Spirits imported by licensed user

107 A licensed user who imports bulk spirits is responsible for them.

Marginal note:Blended spirits — joint and several or solidary responsibility

• 108 (1) If bulk spirits are blended with other bulk spirits, or if bulk spirits are blended with bulk wine and the resulting product is spirits, every person who is a person responsible for any of the spirits or who is a licensed user responsible for any of the bulk wine is jointly and severally or solidarily responsible for the resulting blended spirits.

• Marginal note:Responsibility for wine ceases

  (2) The wine licensee or licensed user who was responsible for the bulk wine before it was blended with bulk spirits as described in subsection (1) ceases to be responsible for the wine as of the time of blending.

Marginal note:Person not responsible

109 A person who is responsible for bulk spirits ceases to be responsible for them if they are

• (a) taken for use and the duty on them is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) denatured into denatured alcohol or specially denatured alcohol;

• (e) exported in accordance with this Act; or

• (f) lost in prescribed circumstances, if the person fulfills any prescribed conditions.

Marginal note:Notification of change of ownership

110 If a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user, the purchaser shall, except in respect of bulk spirits that are to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the spirits licensee who is responsible for the spirits immediately before they are sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

111 If an unmarked special container of spirits is removed by a spirits licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Marginal note:Removal of spirits

112 If spirits are removed by a spirits licensee from their excise warehouse in accordance with section 158, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Responsibility for Bulk Wine

Marginal note:Responsibility

113 Subject to sections 114 to 116, 120 and 121, the person who is responsible for bulk wine at any time is

• (a) the wine licensee or licensed user who owns the wine at that time;

• (b) if the wine is not owned at that time by a wine licensee or licensed user, the wine licensee or licensed user who last owned it; or

• (c) if the wine was never owned by a wine licensee or licensed user, the wine licensee who imported or produced it or the licensed user who imported it.

Marginal note:Return of wine purchased from unlicensed person

• 114 (1) This section applies if a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the wine,

  • (a) the purchaser returns the wine to the wine licensee who was responsible for it immediately before it was purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the wine licensee who supplied it (in this section referred to as the “supplier”); and

  • (b) the ownership of the wine reverts to the unlicensed person.

• Marginal note:Determination of person responsible for returned wine

  (2) At the later of the time at which the previously responsible licensee or supplier receives the wine and the time at which the ownership of the wine reverts to the unlicensed person,

  • (a) the previously responsible licensee becomes again responsible for the wine; and

  • (b) the purchaser of the wine ceases to be responsible for it.

Marginal note:Exception — provincial ownership

115 If, at any time, the government of a province or a liquor authority that is a wine licensee or a licensed user owns bulk wine for a purpose not related to its licence, section 113 applies as though that ownership by the government or the liquor authority did not exist at that time.

Marginal note:Wine imported by licensed user

116 A licensed user who imports bulk wine is responsible for it.

Marginal note:Blended wine — joint and several or solidary responsibility

• 117 (1) If bulk wine is blended with other bulk wine, or if bulk wine is blended with bulk spirits and the resulting product is wine, every person who is a person responsible for any of the wine or who is a licensed user responsible for any of the bulk spirits is jointly and severally or solidarily responsible for the resulting blended wine.

• Marginal note:Responsibility for spirits ceases

  (2) The spirits licensee or licensed user who was responsible for the bulk spirits before they were blended with bulk wine as described in subsection (1) ceases to be responsible for the spirits as of the time of blending.

Marginal note:Responsibility for wine ceases

117.1 If bulk spirits are produced from bulk wine, the wine licensee or licensed user who was responsible for the wine before it was used to produce the spirits ceases to be responsible for the wine at the time the spirits are produced.

Marginal note:Person not responsible

118 A person who is responsible for bulk wine ceases to be responsible for it if it is

• (a) taken for use and the duty on it is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) exported in accordance with this Act; or

• (e) lost, if the loss is recorded in a manner authorized by the Minister.

Marginal note:Notification of change of ownership

119 If a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user, the purchaser shall, except in respect of bulk wine that is to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the wine licensee who is responsible for the wine immediately before it is sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

120 If an unmarked special container of wine is removed by a wine licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the wine unless the wine is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Marginal note:Removal of wine

121 If wine is removed by a wine licensee from their excise warehouse in accordance with section 157, the licensee is responsible for the wine unless it is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Imposition and Payment of Duty on Alcohol

Marginal note:Imposition — domestic spirits

• 122 (1) Duty is imposed on spirits produced in Canada at the rate set out in section 1 of Schedule 4.

• Marginal note:Time of imposition

  (2) The duty is imposed at the time the spirits are produced.

Marginal note:Imposition — low alcoholic strength spirits

123 If spirits do not contain more than 7% of absolute ethyl alcohol by volume at the time that they are packaged,

• (a) the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved; and

• (b) duty is imposed on the spirits at the rate set out in section 2 of Schedule 4.

Marginal note:Definitions

• 123.1 (1) The following definitions apply in this section.

  inflationary adjusted year

  inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

  reference year

  reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

• Marginal note:Annual adjustments

  (2) Each rate of duty set out in Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

  • (a) the rate determined by the formula

    A × B

    where

    A

    is the rate of duty applicable to the litre of absolute ethyl alcohol or the litre of spirits, as the case may be, on March 31 of the inflationary adjusted year, and

    B

    is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

    C/D

    where

    C

    is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

    D

    is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

  • (b) the rate of duty referred to in the description of A in paragraph (a).

• Marginal note:Rounding

  (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• Marginal note:Consumer Price Index

  (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

  • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

  • (b) dividing the aggregate obtained under paragraph (a) by 12; and

  • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• Marginal note:Application of adjusted rate

  (5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

Marginal note:Duty payable when packaged

• 124 (1) Subject to sections 126 and 127, the duty imposed on spirits is payable at the time the spirits are packaged unless, immediately after packaging, they are entered into an excise warehouse.

• Marginal note:Payable by responsible person

  (2) Duty is payable by the person who is responsible for the spirits immediately before they are packaged.

• Marginal note:Spirits licensee ceases to be liable for duty

  (3) If an excise warehouse licensee becomes liable under section 140 for duty on the spirits, the person required under subsection (2) to pay the duty ceases to be liable to pay it.

Marginal note:Duty payable when removed from warehouse

125 If packaged spirits are removed from an excise warehouse for entry into the duty-paid market, duty is payable on the spirits at the time of their removal and is payable by the excise warehouse licensee of the warehouse.

Marginal note:Duty payable on bulk spirits taken for use

126 Subject to sections 144 to 146, if bulk spirits are taken for use, duty is payable at the time the spirits are taken for use by the person who is responsible for the spirits at that time.

Marginal note:Duty payable on unaccounted bulk spirits

• 127 (1) Duty is payable by the person who is responsible for bulk spirits on any portion of the spirits that cannot be accounted for by the person as being in the possession of a spirits licensee, a licensed user or an alcohol registrant.

• Marginal note:When duty payable

  (2) The duty is payable at the time the spirits cannot be accounted for.

• Marginal note:Exception

  (3) Subsection (1) does not apply in circumstances where the person is convicted of an offence under section 218 or is liable to pay a penalty under section 241.

Marginal note:Duty payable on packaged spirits taken for use

128 Subject to sections 144 to 146, if non-duty-paid packaged spirits that are in the possession of an excise warehouse licensee or a licensed user are taken for use, duty is payable at the time the spirits are taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged spirits

• 129 (1) Duty is payable on non-duty-paid packaged spirits that have been received by an excise warehouse licensee or a licensed user but cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the spirits cannot be accounted for.

Marginal note:Fortifying wine

• 130 (1) A licensed user who is also a wine licensee may use bulk spirits to fortify wine to an alcoholic strength not in excess of 22.9% absolute ethyl alcohol by volume.

• Marginal note:Duty relieved on spirits

  (2) The duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were used to fortify the wine is relieved.

Marginal note:Blending wine with spirits

131 A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.

Marginal note:Producing spirits from wine

131.1 A licensed user who is also a spirits licensee may use bulk wine to produce spirits.

Marginal note:Deemed production of spirits — blending wine

• 131.2 (1) If wine is blended with bulk spirits and the resulting product is spirits,

  • (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved; and

  • (b) the resulting spirits are deemed to be produced at the time of the blending.

• Marginal note:Deemed production of spirits — other blending

  (2) If a material or substance, other than spirits or wine, containing absolute ethyl alcohol is blended with bulk spirits or wine and the resulting product is spirits,

  • (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the material or substance is relieved; and

  • (b) the resulting spirits are deemed to be produced at the time of the blending.

Marginal note:Duty relieved — DA and SDA

132 If a spirits licensee denatures bulk spirits into denatured alcohol or specially denatured alcohol, the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved.

Marginal note:Imposition of special duty

• 133 (1) In addition to the duty levied under section 21.1 or 21.2 of the Customs Tariff, a special duty is imposed on imported spirits delivered to or imported by a licensed user at the rate set out in Schedule 5.

• Marginal note:Bulk spirits

  (2) If a spirits licensee imports bulk spirits that are delivered to a licensed user, the special duty is payable at the time the spirits are delivered to the licensed user and is payable

  • (a) by the spirits licensee who is responsible for the spirits at that time;

  • (b) if the licensed user is responsible for the spirits at that time and there was a spirits licensee who was responsible immediately before that time, by that spirits licensee; or

  • (c) if the licensed user is responsible for the spirits at that time and there was not a spirits licensee who was responsible immediately before that time, by the spirits licensee who delivered the spirits.

• Marginal note:Packaged spirits

  (3) If imported packaged spirits or imported spirits that have been packaged in Canada are removed from an excise warehouse for delivery to a licensed user, the special duty is payable by the excise warehouse licensee at the time the spirits are removed from the excise warehouse.

• Marginal note:Spirits imported by licensed user

  (4) If bulk or packaged spirits are imported by a licensed user, the special duty

  • (a) is payable by the licensed user at the time the spirits are imported; and

  • (b) shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duty were a duty levied on the spirits under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Imposition — bulk wine taken for use

• 134 (1) Duty is imposed on bulk wine that is taken for use at the rates set out in Schedule 6.

• Marginal note:Payable by responsible person

  (2) Subject to sections 144 to 146, the duty is payable at the time the wine is taken for use and is payable by the person who is responsible for the wine at that time.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply to

  • (a) wine that is produced in Canada and composed wholly of agricultural or plant product grown in Canada; and

  • (b) wine that is produced by an individual for their personal use and that is consumed in the course of that use.

Marginal note:Imposition — wine packaged in Canada

• 135 (1) Duty is imposed on wine that is packaged in Canada at the rates set out in Schedule 6.

• Marginal note:Wine produced for personal use and by small producers

  (2) Subsection (1) does not apply to wine that is

  • (a) produced in Canada and composed wholly of agricultural or plant product grown in Canada;

  • (a.1) produced and packaged by an individual for their personal use; or

  • (b) produced by a wine licensee and packaged by or on behalf of the licensee during a fiscal month in a particular fiscal year of the licensee if

    • (i) the total sales by the licensee of products that are subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the fiscal year ending immediately before the particular fiscal year did not exceed $50,000, and

    • (ii) the total sales by the licensee of those products during the particular fiscal year before the fiscal month did not exceed $50,000.

• Marginal note:Time of imposition

  (3) The duty is imposed at the time the wine is packaged. It is also payable at that time unless the wine is entered into an excise warehouse immediately after packaging.

• Marginal note:Payable by responsible person

  (4) The duty is payable by the person who is responsible for the wine immediately before it is packaged.

• Marginal note:Wine licensee ceases to be liable for duty

  (5) If an excise warehouse licensee becomes liable under section 140 for duty on the wine, the person required under subsection (4) to pay the duty ceases to be liable to pay it.

Marginal note:Definitions

• 135.1 (1) The following definitions apply in this section.

  inflationary adjusted year

  inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

  reference year

  reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

• Marginal note:Annual adjustments

  (2) Each rate of duty set out in Schedule 6 applicable in respect of a litre of wine is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

  • (a) the rate determined by the formula

    A × B

    where

    A

    is the rate of duty applicable to the litre on March 31 of the inflationary adjusted year, and

    B

    is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

    C/D

    where

    C

    is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

    D

    is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

  • (b) the rate of duty referred to in the description of A in paragraph (a).

• Marginal note:Rounding

  (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• Marginal note:Consumer Price Index

  (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

  • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

  • (b) dividing the aggregate obtained under paragraph (a) by 12; and

  • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• Marginal note:Application of adjusted rate

  (5) If duties on wine are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

Marginal note:Duty payable on removal from warehouse

• 136 (1) Subject to subsection (2), if packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.

• Marginal note:Removals for consignment sales

  (2) If a small wine licensee removes packaged wine that the licensee produced or packaged from the excise warehouse of the licensee for delivery and sale on a consignment basis at a retail store operated on behalf of two or more small wine licensees and that is not located on the premises of a wine licensee, the wine is deemed to be removed from the warehouse for entry into the duty-paid market at the time the wine is sold.

• Meaning of small wine licensee

  (3) In this section, a wine licensee is a small wine licensee during a fiscal year of the licensee if, in the previous fiscal year, the total amount of wine sold by the licensee did not exceed 60,000 litres.

Marginal note:Duty payable on packaged wine taken for use

137 Subject to sections 144 to 146, if non-duty-paid packaged wine that is in the possession of an excise warehouse licensee or a licensed user is taken for use, duty is payable on the wine at the time it is taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged wine

• 138 (1) Duty is payable on non-duty-paid packaged wine that has been received by an excise warehouse licensee or a licensed user but that cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the wine cannot be accounted for.

Marginal note:Duty on wine in marked special container relieved

• 139 (1) Duty imposed under subsection 135(1) is relieved on wine that is contained in a marked special container of wine from which the marking has been removed in accordance with section 156.

• Marginal note:Duty on returned wine relieved

  (2) Duty imposed under subsection 135(1) or levied under subsection 21.2(2) of the Customs Tariff is relieved on wine that is returned to the bulk wine inventory of a wine licensee in accordance with section 157.

Liability of Excise Warehouse Licensees and Licensed Users

Marginal note:Non-duty-paid packaged alcohol

140 If non-duty-paid packaged alcohol is entered into an excise warehouse immediately after being packaged, the excise warehouse licensee is liable for the duty on the alcohol at the time it is entered into the warehouse.

Marginal note:Imported packaged alcohol

141 If, in accordance with subsection 21.2(3) of the Customs Tariff, imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee or licensed user who imported it, the excise warehouse licensee or licensed user is liable for the duty on the alcohol.

Marginal note:Transfer between warehouse licensees

• 142 (1) If non-duty-paid packaged alcohol is removed from the excise warehouse of an excise warehouse licensee (in this subsection referred to as the “transferor”) to the excise warehouse of another excise warehouse licensee, at the time the alcohol is entered into the warehouse of the other licensee,

  • (a) the other licensee becomes liable for the duty on the alcohol; and

  • (b) the transferor ceases to be liable for the duty.

• Marginal note:Transfer to licensed user

  (2) If non-duty-paid packaged alcohol is removed from an excise warehouse to the specified premises of a licensed user, at the time the alcohol is entered into those premises,

  • (a) the licensed user becomes liable for the duty on the alcohol; and

  • (b) the excise warehouse licensee ceases to be liable for the duty.

• Marginal note:Transfer from licensed user

  (3) If non-duty-paid packaged alcohol is removed from the specified premises of a licensed user to an excise warehouse, at the time the alcohol is entered into the warehouse,

  • (a) the excise warehouse licensee becomes liable for the duty on the alcohol; and

  • (b) the licensed user ceases to be liable for the duty.

Non-dutiable Uses and Removals of Alcohol

Marginal note:Approved formulations

143 The Minister may impose any conditions or restrictions that the Minister considers necessary in respect of the making, importation, packaging, use or sale of, or other dealing with, an approved formulation.

Marginal note:Non-dutiable uses — approved formulations

144 Duty is relieved on bulk alcohol and non-duty-paid packaged alcohol used by a licensed user in an approved formulation.

Marginal note:Duty not payable — bulk alcohol

• 145 (1) Duty is not payable on bulk alcohol

  • (a) taken for analysis by an alcohol licensee or a licensed user in a manner approved by the Minister;

  • (b) destroyed by an alcohol licensee or a licensed user in a manner approved by the Minister; or

  • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister.

• Marginal note:Duty not payable — packaged alcohol

  (2) Duty is not payable on non-duty-paid packaged alcohol

  • (a) taken for analysis by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

  • (b) destroyed by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

  • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister; or

  • (d) in the case of wine, taken for use by an excise warehouse licensee if that licensee is also the wine licensee who produced or packaged the wine and the wine is provided free of charge to individuals for consumption as a sample at the premises where the licensee produces or packages wine.

• Marginal note:No duty payable — alcohol taken for analysis or destroyed

  (3) Duty is not payable on bulk alcohol or non-duty-paid packaged alcohol that is taken for analysis or destroyed by the Minister.

Marginal note:Duty not payable — vinegar

• 146 (1) Duty is not payable on alcohol that is used by a licensed user to produce vinegar if not less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used.

• Marginal note:Deemed taken for use if deficiency

  (2) If a licensed user uses alcohol to produce vinegar and less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used, the licensed user is deemed to have taken for use, at the time the vinegar is produced, the number of litres of that alcohol that is equivalent to the number determined by the formula

  A - (2 × B)

  where

  A

  is the number of litres of absolute ethyl alcohol used, and

  B

  is the number of kilograms of acetic acid produced.

Marginal note:Duty not payable — packaged alcohol

• 147 (1) Duty is not payable on non-duty-paid packaged alcohol, other than alcohol contained in a marked special container, that is removed from an excise warehouse

  • (a) for delivery

    • (i) to an accredited representative for their personal or official use,

    • (ii) to a duty free shop for sale in accordance with the Customs Act,

    • (iii) to a registered user for use in accordance with their registration, or

    • (iv) as ships’ stores in accordance with the Ships’ Stores Regulations; or

  • (b) for export by the excise warehouse licensee in accordance with this Act.

• Marginal note:Duty not payable — special container of spirits

  (2) Duty is not payable on spirits contained in a marked special container that is removed from an excise warehouse

  • (a) for delivery to a registered user for use in accordance with their registration, if the container is marked for delivery to and use by a registered user; or

  • (b) for export by the excise warehouse licensee in accordance with this Act, if the container was imported.

• Marginal note:Duty not payable — special container of wine

  (3) Duty is not payable on wine imported in a marked special container that is removed from an excise warehouse for export by the excise warehouse licensee in accordance with this Act.

• Marginal note:Duty not payable — wine samples

  (4) Duty is not payable on non-duty-paid packaged wine, other than wine contained in a marked special container, that is removed from the excise warehouse of the wine licensee who produced or packaged the wine if the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine.

Determining Volume of Alcohol

Marginal note:Volume of alcohol

• 148 (1) The volume and absolute ethyl alcohol content of alcohol shall be determined in a manner specified by the Minister using approved instruments.

• Marginal note:Approval of instrument

  (2) The Minister may examine and approve an instrument or a class, type or design of instruments for the measurement of the volume and absolute ethyl alcohol content of alcohol.

• Marginal note:Re-examination

  (3) The Minister may direct in writing that any instrument previously examined and approved, or of a class, type or design previously examined and approved, by the Minister be submitted to the Minister for re-examination and, if the Minister so directs, the person who has the custody and control of the instrument shall immediately submit it to the Minister for re-examination.

• Marginal note:Revocation of approval

  (4) After re-examining an instrument, the Minister may, in writing, revoke the Minister’s approval of that instrument or instruments of the same class, type or design as that instrument.

• Marginal note:Indicating instrument is approved

  (5) Every approved instrument the approval of which has not been revoked shall indicate the approval in a manner acceptable to the Minister.

Excise Warehouses

Marginal note:Restriction — entering into warehouse

149 No person shall enter non-duty-paid packaged alcohol into an excise warehouse except in accordance with this Act.

Marginal note:Import by warehouse licensee

• 150 (1) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee who imported it, the licensee shall immediately enter it into the excise warehouse of the licensee.

• Marginal note:Import by licensed user

  (2) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the licensed user who imported it, the licensed user shall immediately enter it into the specified premises of the licensed user.

Marginal note:Restriction on removal

• 151 (1) No person shall remove non-duty-paid packaged alcohol from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, a person may remove from an excise warehouse

  • (a) non-duty-paid packaged alcohol, other than alcohol in a marked special container, for

    • (i) entry into the duty-paid market,

    • (ii) delivery to another excise warehouse,

    • (iii) delivery to an accredited representative for their personal or official use,

    • (iv) delivery as ships’ stores, in accordance with the Ships’ Stores Regulations,

    • (v) delivery to a duty free shop for sale in accordance with the Customs Act to persons who are about to leave Canada,

    • (vi) delivery to a licensed user,

    • (vii) delivery to a registered user for use in accordance with their registration,

    • (viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or

    • (ix) export;

  • (a.1) non-duty-paid packaged wine, other than wine in a marked special container, if the warehouse is the excise warehouse of the wine licensee who produced or packaged the wine and the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine;

  • (b) a non-duty-paid marked special container of wine for

    • (i) delivery to another excise warehouse, or

    • (ii) entry into the duty-paid market for delivery to a bottle-your-own premises;

  • (c) a non-duty-paid marked special container of spirits for

    • (i) delivery to another excise warehouse,

    • (ii) if the container is marked for delivery to and use by a registered user, delivery to a registered user for use in accordance with their registration, or

    • (iii) if the container is marked for delivery to and use at a bottle-your-own premises, entry into the duty-paid market for delivery to a bottle-your-own premises; or

  • (d) an imported non-duty-paid marked special container of alcohol, for export.

Marginal note:Return of duty-paid alcohol

152 If packaged alcohol that has been removed from an excise warehouse for entry into the duty-paid market is returned to that warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

Marginal note:Return of non-duty-paid alcohol

153 If non-duty-paid packaged alcohol that has been removed from an excise warehouse in accordance with section 147 is returned to an excise warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

Marginal note:Return of non-duty-paid wine

153.1 If non-duty-paid packaged wine that has been removed from an excise warehouse under subparagraph 151(2)(a)(viii) is returned to that warehouse under prescribed conditions, the wine may, if it had not been entered into the duty-paid market, be entered into the warehouse as non-duty-paid packaged wine.

Marginal note:Supplying packaged alcohol to retail store

• 154 (1) Subject to subsections (2) and 155(1), an excise warehouse licensee shall not, during a calendar year, supply from a particular premises specified in the excise warehouse licence of the licensee to a retail store more than 30% of the total volume of packaged alcohol supplied from those premises to all retail stores during the year.

• Marginal note:Exception for certain retail stores

  (2) An excise warehouse licensee who is an alcohol licensee may supply from the particular premises to a retail store of the licensee more than 30% of that total volume if

  • (a) the store is located at a place at which the licensee produces or packages alcohol; and

  • (b) not less than 90% of the volume of packaged alcohol supplied to the store from the particular premises in the year consists of alcohol that was packaged by, or, if the licensee was responsible for the alcohol immediately before it was packaged, on behalf of, the licensee.

Marginal note:Exception for remote stores

• 155 (1) On application in the prescribed form and manner by an excise warehouse licensee who is a liquor authority or a non-retailer of alcohol, the Minister may authorize the licensee to supply during a calendar year from a particular premises specified in their excise warehouse licence to a retail store more than 30% of the total volume of packaged alcohol to be supplied from the premises to all retail stores during the year if the Minister is satisfied that the delivery of packaged alcohol by railway, truck or water vessel to the store is not possible for five consecutive months in every year.

• Marginal note:Revocation

  (2) The Minister may revoke an authorization under subsection (1) if

  • (a) the licensee makes a written request to the Minister to revoke the authorization;

  • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

  • (c) the Minister is no longer satisfied that the requirements of subsection (1) are met; or

  • (d) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (3) If the Minister revokes an authorization of a licensee, the Minister shall notify the licensee in writing of the revocation and its effective date.

Marginal note:Removal of special container

156 An alcohol licensee who has marked a special container of alcohol may remove the container from their excise warehouse to return it to the bulk alcohol inventory of the licensee if the marking on the container is removed by the licensee in the manner approved by the Minister.

Marginal note:Removal of packaged wine from excise warehouse

157 A wine licensee may remove non-duty-paid packaged wine from their excise warehouse to return it to the bulk wine inventory of the licensee.

Marginal note:Removal of packaged spirits from excise warehouse

158 A spirits licensee may remove non-duty-paid packaged spirits from their excise warehouse to return them to the bulk spirits inventory of the licensee.

PART 4.1Cannabis

Exclusions

Marginal note:Non-application

158.01 This Part does not apply to

• (a) cannabis products that are produced in Canada by an individual for the personal use of the individual and in accordance with the Cannabis Act, but only to the extent that those cannabis products are used in activities that are not prohibited for those cannabis products under that Act;

• (b) cannabis products that are produced in Canada by an individual for the medical purposes of the individual and in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, as applicable, but only to the extent that those cannabis products are used by the individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable; or

• (c) cannabis products that are produced in Canada by a designated person — being an individual who is authorized under the Controlled Drugs and Substances Act or the Cannabis Act to produce cannabis for the medical purposes of another individual — for the medical purposes of the other individual and in accordance with whichever of those Acts is applicable, but only to the extent that those cannabis products are used by the designated person or the other individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable.

Cannabis Production and Stamping

Marginal note:Production without licence prohibited

• 158.02 (1) No person shall, other than in accordance with a cannabis licence issued to the person, produce cannabis products.

• Marginal note:Deemed producer

  (2) A person that, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the production of a cannabis product is deemed to be producing the cannabis product and the other person is deemed not to be producing the cannabis product.

• Marginal note:Exception

  (3) Subsection (1) does not apply in respect of

  • (a) the production of industrial hemp by-products by an industrial hemp grower; and

  • (b) a prescribed person that produces prescribed cannabis products, or cannabis products of a prescribed class, in prescribed circumstances or for a prescribed purpose.

Marginal note:Issuance of cannabis excise stamps

• 158.03 (1) On application in the prescribed form and manner, the Minister may issue, to a cannabis licensee, stamps the purpose of which is to indicate that cannabis duty and, if applicable, additional cannabis duty have been paid on a cannabis product.

• Marginal note:Quantity of cannabis excise stamps

  (2) The Minister may limit the quantity of cannabis excise stamps that may be issued to a person under subsection (1).

• Marginal note:Security

  (3) No person shall be issued a cannabis excise stamp unless the person has provided any security required by regulation in a form satisfactory to the Minister.

• Marginal note:Supply of cannabis excise stamps

  (4) The Minister may authorize a producer of cannabis excise stamps to supply, on the direction of the Minister, cannabis excise stamps to a person to which those stamps are issued under subsection (1).

• Marginal note:Design and construction

  (5) The design and construction of cannabis excise stamps shall be subject to the approval of the Minister.

Marginal note:Counterfeit cannabis excise stamps

158.04 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a cannabis excise stamp.

Marginal note:Unlawful possession of cannabis excise stamps

• 158.05 (1) No person shall possess a cannabis excise stamp that has not been affixed to a packaged cannabis product in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty has been paid on the cannabis product.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a cannabis excise stamp by

  • (a) the person that lawfully produced the cannabis excise stamp;

  • (b) the person to which the cannabis excise stamp is issued; or

  • (c) a prescribed person.

Marginal note:Unlawful supply of cannabis excise stamps

158.06 No person shall dispose of, sell or otherwise supply, or offer to supply, a cannabis excise stamp otherwise than in accordance with this Act.

Marginal note:Cancellation of cannabis excise stamps

158.07 The Minister may

• (a) cancel a cannabis excise stamp that has been issued; and

• (b) direct that it be returned or destroyed in a manner specified by the Minister.

Marginal note:Unlawful packaging or stamping

158.08 No person shall package or stamp a cannabis product unless the person is a cannabis licensee or a prescribed person.

Marginal note:Unlawful removal

• 158.09 (1) Except as permitted under section 158.15, no person shall remove a cannabis product from the premises of a cannabis licensee unless it is packaged and

  • (a) if the cannabis product is intended for the duty-paid market,

    • (i) it is stamped to indicate that cannabis duty has been paid, and

    • (ii) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, it is stamped to indicate that the additional cannabis duty has been paid; or

  • (b) if the cannabis product is not intended for the duty-paid market, all prescribed information is printed on or affixed to its container in a prescribed manner.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a cannabis licensee that removes from their premises a cannabis product

  • (a) if the cannabis product is being removed

    • (i) for delivery to another cannabis licensee,

    • (ii) for export as permitted under the Cannabis Act,

    • (iii) for delivery to a person for sterilization in accordance with subparagraph 158.11(3)(a)(ii), or

    • (iv) for delivery to a person for analysis or destruction in accordance with subparagraph 158.3(a)(v);

  • (b) if the cannabis product is

    • (i) a low-THC cannabis product,

    • (ii) a prescription cannabis drug, or

    • (iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

  • (c) in prescribed circumstances or for a prescribed purpose.

• Marginal note:Removal by Minister

  (3) Subsection (1) does not apply to the removal of a cannabis product for analysis or destruction

  • (a) by the Minister; or

  • (b) by the Minister, as defined in subsection 2(1) of the Cannabis Act.

Marginal note:Prohibition — cannabis for sale

158.1 No person shall purchase or receive for sale

• (a) a cannabis product from a producer that the person knows, or ought to know, is not

  • (i) a cannabis licensee, or

  • (ii) in the case of an industrial hemp by-product, an industrial hemp grower;

• (b) a cannabis product that is required under this Act to be packaged and stamped unless it is packaged and stamped in accordance with this Act; or

• (c) a cannabis product that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Selling, etc., unstamped cannabis

• 158.11 (1) No person, other than a cannabis licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a cannabis product unless

  • (a) it is packaged; and

  • (b) it is stamped to indicate that cannabis duty has been paid.

• Marginal note:Selling, etc., unstamped cannabis — specified province

  (2) No person, other than a cannabis licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a cannabis product in a specified province unless it is stamped to indicate that additional cannabis duty in respect of the specified province has been paid.

• Marginal note:Exception — possession of cannabis

  (3) Subsections (1) and (2) do not apply to the possession of a cannabis product

  • (a) by a person that

    • (i) is a prescribed person that is transporting the cannabis product under prescribed circumstances and conditions,

    • (ii) is a prescribed person that is sterilizing the cannabis product under prescribed circumstances and conditions,

    • (iii) is an individual if the cannabis product was imported for their medical purposes in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, as applicable, or

    • (iv) possesses the cannabis product for analysis or destruction in accordance with subparagraph 158.3(a)(v);

  • (b) if the cannabis product is

    • (i) a low-THC cannabis product,

    • (ii) a prescription cannabis drug, or

    • (iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

  • (c) in prescribed circumstances or for a prescribed purpose.

• Marginal note:Exception — disposal, sale, etc.

  (4) Subsections (1) and (2) do not apply to the disposal, sale, offering for sale or purchase of a cannabis product

  • (a) if the cannabis product is

    • (i) a low-THC cannabis product,

    • (ii) a prescription cannabis drug, or

    • (iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

  • (b) in prescribed circumstances or for a prescribed purpose.

• Marginal note:Exception — industrial hemp

  (5) Subsections (1) and (2) do not apply to

  • (a) the possession of an industrial hemp by-product by the industrial hemp grower that produced it, if the industrial hemp by-product

    • (i) is on the industrial hemp grower’s property, or

    • (ii) is being transported by the industrial hemp grower for delivery to or return from a cannabis licensee; and

  • (b) the disposal, sale or offering for sale of an industrial hemp by-product to a cannabis licensee by the industrial hemp grower that produced it.

• Marginal note:Exception — specified province

  (6) Subsection (2) does not apply to

  • (a) the possession of a cannabis product in prescribed circumstances or for a prescribed purpose; or

  • (b) the disposal, sale, offering for sale or purchase of a cannabis product in prescribed circumstances or for a prescribed purpose.

Marginal note:Sale or distribution by licensee

• 158.12 (1) No cannabis licensee shall distribute a cannabis product or sell or offer for sale a cannabis product to a person unless

  • (a) it is packaged;

  • (b) it is stamped to indicate that cannabis duty has been paid; and

  • (c) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, it is stamped to indicate that the additional cannabis duty has been paid.

• Marginal note:Exception

  (2) Subsection (1) does not apply to the distribution, sale or offering for sale of a cannabis product

  • (a) to a cannabis licensee;

  • (b) if the cannabis product is exported by the cannabis licensee in accordance with the Cannabis Act;

  • (c) if the cannabis product is

    • (i) a low-THC cannabis product,

    • (ii) a prescription cannabis drug, or

    • (iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

  • (d) in prescribed circumstances or for a prescribed purpose.

Marginal note:Packaging and stamping of cannabis

158.13 A cannabis licensee that produces a cannabis product shall not enter the cannabis product into the duty-paid market unless

• (a) the cannabis product has been packaged by the licensee;

• (b) the package has printed on it prescribed information;

• (c) the cannabis product is stamped by the licensee to indicate that cannabis duty has been paid; and

• (d) if the cannabis product is to be entered in the duty-paid market of a specified province, the cannabis product is stamped by the licensee to indicate that additional cannabis duty in respect of the specified province has been paid.

Marginal note:Notice — absence of stamping

• 158.14 (1) The absence on a cannabis product of stamping that indicates that cannabis duty has been paid is notice to all persons that cannabis duty has not been paid on the cannabis product.

• Marginal note:Notice — absence of stamping

  (2) The absence on a cannabis product of stamping that indicates that additional cannabis duty in respect of a specified province has been paid is notice to all persons that additional cannabis duty in respect of the specified province has not been paid on the cannabis product.

Marginal note:Cannabis — waste removal

• 158.15 (1) No person shall remove a cannabis product that is waste from the premises of a cannabis licensee other than the cannabis licensee or a person authorized by the Minister.

• Marginal note:Removal requirements

  (2) If a cannabis product that is waste is removed from the premises of a cannabis licensee, it shall be dealt with in the manner authorized by the Minister.

Marginal note:Re-working or destruction of cannabis

158.16 A cannabis licensee may re-work or destroy a cannabis product in the manner authorized by the Minister.

Responsibility for Cannabis

Marginal note:Responsibility

158.17 Subject to section 158.18, a person is responsible for a cannabis product at any time if

• (a) the person is

  • (i) the cannabis licensee that owns the cannabis product at that time, or

  • (ii) if the cannabis product is not owned at that time by a cannabis licensee, the cannabis licensee that last owned it; or

• (b) the person is a prescribed person or a person that meets prescribed conditions.

Marginal note:Person not responsible

158.18 A person that is responsible for a cannabis product ceases to be responsible for it

• (a) if it is packaged and stamped and the duty on it is paid;

• (b) if it is consumed or used in the production of a cannabis product that is

  • (i) a low-THC cannabis product,

  • (ii) a prescription cannabis drug, or

  • (iii) a prescribed cannabis product or a cannabis product of a prescribed class;

• (c) if it is taken for use and the duty on it is paid;

• (d) if it is taken for use in accordance with any of subparagraphs 158.3(a)(i) to (v);

• (e) if it is exported in accordance with the Cannabis Act;

• (f) if it is lost in prescribed circumstances and the person fulfils any prescribed conditions; or

• (g) in prescribed circumstances or if prescribed conditions are met.

Imposition and Payment of Duty on Cannabis

Marginal note:Imposition — flat-rate duty

• 158.19 (1) Duty is imposed on cannabis products produced in Canada at the time they are packaged in the amount determined under section 1 of Schedule 7.

• Marginal note:Imposition — ad valorem duty

  (2) Duty is imposed on packaged cannabis products produced in Canada at the time of their delivery to a purchaser in the amount determined under section 2 of Schedule 7.

• Marginal note:Duty payable

  (3) The greater of the duty imposed under subsection (1) and the duty imposed under subsection (2) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the lesser of those duties.

• Marginal note:Equal duties

  (4) If the amount of duty imposed under subsection (1) is equal to the amount of duty imposed under subsection (2), the duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the duty imposed under subsection (2).

Marginal note:Imposition — additional cannabis duty

• 158.2 (1) In addition to the duty imposed under section 158.19, a duty in respect of a specified province is imposed on cannabis products produced in Canada in prescribed circumstances in the amount determined in a prescribed manner.

• Marginal note:Duty payable

  (2) The duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser.

Marginal note:Duty on imported cannabis

• 158.21 (1) Duty is imposed on imported cannabis products in the amount that is equal to the greater of

  • (a) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

  • (b) the amount determined in respect of the cannabis products under section 3 of Schedule 7.

• Marginal note:Duty payable

  (2) The duty imposed under subsection (1) is payable by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the cannabis products if they were subject to that duty.

Marginal note:Additional cannabis duty on imported cannabis

• 158.22 (1) In addition to the duty imposed under section 158.21, a duty in respect of a specified province is imposed on imported cannabis products in prescribed circumstances in the amount determined in a prescribed manner.

• Marginal note:Duty payable

  (2) The duty imposed under subsection (1) is payable by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the cannabis products if they were subject to that duty.

Marginal note:Application of Customs Act

158.23 The duties imposed under sections 158.21 and 158.22 on imported cannabis products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Value for duty

158.24 For the purposes of section 3 of Schedule 7 and of any regulations made for the purposes of section 158.22 in respect of imported cannabis products,

• (a) the value of a cannabis product is equal to the value of the cannabis product, as it would be determined under the Customs Act for the purpose of calculating duties imposed under the Customs Tariff on the cannabis product at a percentage rate, whether the cannabis product is in fact subject to duty under the Customs Tariff; or

• (b) despite paragraph (a), the value of a cannabis product imported in prescribed circumstances shall be determined in prescribed manner.

Marginal note:Duty on cannabis taken for use

• 158.25 (1) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, the following rules apply:

  • (a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

  • (b) duty is imposed on the cannabis products in the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

    • (ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

• Marginal note:Specified province — duty on cannabis taken for use

  (2) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Marginal note:Duty on unaccounted cannabis

• 158.26 (1) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), the following rules apply:

  • (a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

  • (b) duty is imposed on the cannabis products in the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

    • (ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

• Marginal note:Specified province — duty on unaccounted cannabis

  (2) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

• Marginal note:Exception

  (4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.1.

Marginal note:Definition of commencement day

• 158.27 (1) For the purposes of this section, commencement day has the same meaning as in section 152 of the Cannabis Act.

• Marginal note:Duty on cannabis — production before commencement day

  (2) Duty is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in the amount that is equal to the greater of

  • (a) the amount determined in respect of the cannabis product under section 1 of Schedule 7, and

  • (b) the amount determined in respect of the cannabis product under section 2 of Schedule 7.

• Marginal note:Additional cannabis duty — production before commencement day

  (3) In addition to the duty imposed under subsection (2), a duty in respect of a specified province is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in prescribed circumstances in the amount determined in a prescribed manner.

• Marginal note:Duty payable

  (4) The duty imposed under subsection (2) or (3) is payable on commencement day by the cannabis licensee that packaged the cannabis product.

• Marginal note:Exception

  (5) Subsection (2) does not apply to a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered to a prescribed person in prescribed circumstances or for a prescribed purpose.

Marginal note:Duty relieved — cannabis imported by licensee

158.28 The duties imposed under sections 158.21 and 158.22 are relieved on

• (a) a cannabis product that is not packaged and that is imported by a cannabis licensee; or

• (b) a prescribed cannabis product, or a cannabis product of a prescribed class, that is imported by a prescribed person in prescribed circumstances or for a prescribed purpose.

Marginal note:Duty relieved — prescribed circumstances

158.29 The duties imposed under any of sections 158.19 to 158.22 and 158.27 are relieved on a prescribed cannabis product, or a cannabis product of a prescribed class, in prescribed circumstances or if prescribed conditions are met.

Marginal note:Duty not payable

158.3 Duty is not payable on

• (a) a cannabis product that

  • (i) is taken for analysis or destroyed by the Minister,

  • (ii) is taken for analysis or destroyed by the Minister, as defined in subsection 2(1) of the Cannabis Act,

  • (iii) is taken for analysis by a cannabis licensee in a manner approved by the Minister,

  • (iv) is destroyed by a cannabis licensee in a manner approved by the Minister,

  • (v) is delivered by a cannabis licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

  • (vi) is a low-THC cannabis product,

  • (vii) is a prescription cannabis drug, or

  • (viii) is a prescribed cannabis product or a cannabis product of a prescribed class;

• (b) a non-duty-paid cannabis product that is removed from the premises of a cannabis licensee for export in accordance with the Cannabis Act; or

• (c) a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered by a cannabis licensee to a prescribed person in prescribed circumstances or for a prescribed purpose.

Marginal note:Quantity of cannabis

158.31 For the purposes of determining an amount of duty in respect of a cannabis product under section 1 of Schedule 7, the following rules apply:

• (a) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined in a prescribed manner in prescribed circumstances; and

• (b) if paragraph (a) does not apply in respect of the cannabis product,

  • (i) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined at the time the flowering material and non-flowering material are so included or used and in a manner satisfactory to the Minister, and

  • (ii) if the quantity of flowering material included in the cannabis product or used in the production of the cannabis product is determined in accordance with subparagraph (i), the particular quantity of that flowering material that is industrial hemp by-product is deemed to be non-flowering material if that particular quantity is determined in a manner satisfactory to the Minister.

Marginal note:Delivery to purchaser

158.32 For the purposes of sections 158.19, 158.2 and 158.27 and for greater certainty, delivery to a purchaser includes

• (a) delivering cannabis products, or making them available, to a person other than the purchaser on behalf of or under the direction of the purchaser;

• (b) delivering cannabis products, or making them available, to a person that obtains them otherwise than by means of a purchase; and

• (c) delivering cannabis products or making them available in prescribed circumstances.

Marginal note:Time of delivery

158.33 For the purposes of sections 158.19, 158.2 and 158.27, a cannabis product is deemed to be delivered to a purchaser by a cannabis licensee at the earliest of

• (a) the time at which the cannabis licensee delivers the cannabis product or makes it available to the purchaser,

• (b) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to the purchaser, and

• (c) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to a carrier — being a person that provides a service of transporting goods including, for greater certainty, a service of delivering mail — for delivery to the purchaser.

Marginal note:Dutiable amount

158.34 For the purpose of section 2 of Schedule 7, the dutiable amount of a cannabis product is deemed to be equal to the fair market value of the cannabis product

• (a) if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase; or

• (b) in prescribed circumstances.

PART 5General Provisions Concerning Duty and Other Amounts Payable

Fiscal Periods

Marginal note:Determination of fiscal months

• 159 (1) The fiscal months of a person other than a cannabis licensee shall be determined in accordance with the following rules:

  • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

  • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the person may select for the purposes of this Act fiscal months that meet the requirements set out in that subsection 243(2); and

  • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

• Marginal note:Fiscal months — cannabis licensee

  (1.01) For the purposes of this Act, the fiscal months of a cannabis licensee are calendar months.

• Marginal note:Determination of fiscal half-years

  (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

  • (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

  • (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

• Marginal note:Notification of Minister

  (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

Reporting Periods

Marginal note:Reporting period — general

• 159.1 (1) Subject to this section, the reporting period of a person is a fiscal month.

• Marginal note:Reporting period — semi-annual

  (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

  • (a) the person is a licensee in one or more of the following categories:

    • (i) an excise warehouse licensee who does not hold in their excise warehouse manufactured tobacco or cigars,

    • (ii) a spirits licensee,

    • (iii) a wine licensee, or

    • (iv) a licensed user;

  • (b) the person has been licensed for a period exceeding twelve consecutive fiscal months;

  • (c) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

  • (d) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the particular fiscal year does not exceed $120,000;

  • (e) in the case where the person is an excise warehouse licensee, the liability of the person and any excise warehouse licensee associated with the person with respect to duty on alcohol entered into an excise warehouse

    • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

    • (ii) does not exceed $120,000 in the particular fiscal year;

  • (f) in the case where the person is a licensed user, the liability of the person and any licensed user associated with the person with respect to duty on alcohol entered into their specified premises

    • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

    • (ii) does not exceed $120,000 in the particular fiscal year;

  • (g) the volume of absolute ethyl alcohol added to the bulk spirits inventory of the person that is a spirits licensee and any spirits licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

    A / B

    where

    A

    is $120,000, and

    B

    is the rate of duty on spirits set out in section 1 of Schedule 4;

  • (h) the volume of wine added to the bulk wine inventory of the person that is a wine licensee and any wine licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

    A / B

    where

    A

    is $120,000, and

    B

    is the rate of duty on wine set out in paragraph (c) of Schedule 6; and

  • (i) the person is in compliance with the Act.

• Marginal note:Deemed revocation

  (3) An authorization under subsection (2) is deemed to be revoked if

  • (a) any of the conditions described in paragraphs (2)(d) to (h) is no longer met in respect of the person, which revocation is effective as of the first day after the end of the fiscal half-year in which the condition is no longer met; or

  • (b) an excise warehouse licensee holds in their excise warehouse manufactured tobacco or cigars, which revocation is effective as of the first day of the fiscal month in which the licensee begins to hold the tobacco or cigars.

• Marginal note:Revocation — other

  (4) The Minister may revoke an authorization if

  • (a) the person requests in writing the Minister to do so;

  • (b) the person fails to comply with the Act; or

  • (c) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

• Marginal note:Deemed reporting period on revocation

  (6) If a revocation under paragraph (3)(b) or subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

Returns and Payment of Duty and Other Amounts

Marginal note:Filing by licensee

160 Every person who is licensed under this Act shall, not later than the last day of the first month after each reporting period of the person,

• (a) file a return with the Minister, in the prescribed form and manner, for that reporting period;

• (b) calculate, in the return, the total amount of the duty payable, if any, by the person for that reporting period; and

• (c) pay that amount to the Receiver General.

Marginal note:Filing by other persons

161 Every person who is not licensed under this Act and who is required to pay duty under this Act shall, not later than the last day of the first month after the fiscal month of the person in which the duty became payable,

• (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

• (b) calculate, in the return, the total amount of the duty payable by the person for that fiscal month; and

• (c) pay that amount to the Receiver General.

Marginal note:Set-off of refunds

162 If, at any time, a person files a return in which the person reports an amount that is required to be paid under this Act by them and the person claims a refund payable to them at that time, in the return or in another return, or in a separate application filed under this Act with the return, the person is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Marginal note:Large payments

163 Every person who is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

• (a) a bank;

• (b) an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

• (c) a credit union;

• (d) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

• (e) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

Marginal note:Authority for separate returns

• 164 (1) A licensee who engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

• Marginal note:Authorization by Minister

  (2) On receipt of the application, the Minister may, in writing, authorize the licensee to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

  • (a) the branch or division can be separately identified by reference to the location of the branch or division or the nature of the activities engaged in by it; and

  • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

• Marginal note:Revocation of authorization

  (3) The Minister may revoke an authorization if

  • (a) the licensee, in writing, requests the Minister to revoke the authorization;

  • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

  • (c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the licensee are met; or

  • (d) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the licensee and shall specify in the notice the effective date of the revocation.

Marginal note:Amounts owing of $2 or less in total

• 165 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty under this Act does not exceed two dollars, those amounts are deemed to be nil.

• Marginal note:Amounts payable of $2 or less in total

  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.

Meaning of electronic filing

• 166 (1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

• Marginal note:Filing of return by electronic filing

  (2) A person who is required to file with the Minister a return under this Act, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

• Marginal note:Deemed filing

  (3) For the purposes of this Act, if a person files a return by way of electronic filing, it is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Marginal note:Execution of returns, etc.

167 A return, other than a return filed by way of electronic filing under section 166, a certificate or other document made by a person, other than an individual, under this Act shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation, association or organization, are deemed to be so duly authorized.

Marginal note:Extension of time

• 168 (1) At any time, the Minister may, in writing, extend the time limited under this Act for a person to file a return or provide information.

• Marginal note:Effect of extension

  (2) If the Minister extends the time under subsection (1),

  • (a) the return shall be filed, or the information shall be provided, within the time so extended;

  • (b) any duty payable that the person is required to report in the return shall be paid within the time so extended;

  • (c) any interest payable under section 170 on any amount payable in respect of the return shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and

  • (d) any penalty payable under section 251.1 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires.

Marginal note:Demand for return

169 The Minister may, on demand sent by the Minister, require any person to file, within any reasonable time stipulated in the demand, a return under this Act for any period designated in the demand.

Interest

Marginal note:Compound interest on amounts not paid when required

• 170 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day the amount is paid.

• Marginal note:Payment of interest that is compounded

  (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

• Marginal note:Period where interest not payable

  (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

• Marginal note:Minimum interest and penalty

  (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty payable under section 251.1, owing at that time to Her Majesty under this Act for a reporting period of the person and the total amount of interest and the penalty payable by the person under this Act for that period is not more than $25.00, the Minister may waive the total amount.

• (5) [Repealed, 2003, c. 15, s. 92]

Marginal note:Compound interest on amounts payable by Minister

171 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty, unless this Act provides otherwise.

Marginal note:Application of interest provisions if Act amended

172 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

Marginal note:Waiving or reducing interest

173 The Minister may, on or before the particular day that is 10 calendar years after the day an amount was required to be paid by a person under this Act, or on application by the person on or before the particular day, waive or reduce any interest on the amount payable by the person under section 170.

Refunds

Marginal note:Statutory recovery rights

174 Except as specifically provided under this Act, the Customs Act, the Customs Tariff or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty as or on account of, or that has been taken into account by Her Majesty as, duty, interest or other amount payable under this Act.

Marginal note:Applications for refunds

• 175 (1) An application for a refund under this Act shall be filed with the Minister in the prescribed form and manner.

• Marginal note:Single application

  (2) Only one application may be made under this Act for a refund with respect to any matter.

Marginal note:Payment if error

• 176 (1) If a person has paid an amount as or on account of, or that was taken into account as, duty, interest or other amount payable under this Act in circumstances in which the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall pay a refund of that amount to the person.

• Marginal note:Restriction

  (2) A refund in respect of an amount shall not be paid to a person to the extent that

  • (a) the amount was taken into account as duty for a reporting period of the person and the Minister has assessed the person for the period under section 188; or

  • (b) the amount paid was duty, interest or other amount assessed under that section.

• Marginal note:Application for refund

  (3) A refund of an amount shall not be paid to a person unless the person files an application for the refund within two years after the person paid the amount.

Marginal note:Restriction on refunds, etc.

177 A refund or a payment of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

• (a) the amount has previously been refunded, remitted or paid to that person, or applied against an amount owed by the person to Her Majesty, under this or any other Act of Parliament; or

• (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament.

Marginal note:Restriction re trustees

178 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund or any other payment under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those reporting periods have been paid.

Marginal note:Overpayment of refunds, etc.

• 179 (1) If an amount is paid to, or applied to a liability of, a person as a refund or other payment under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

• Marginal note:Effect of reduction of refund, etc.

  (2) For the purposes of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 177, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Marginal note:No refund — exportation

180 Subject to this Act, the duty paid on any tobacco product, cannabis product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the tobacco product, cannabis product or alcohol.

180.1 [Repealed, 2014, c. 20, s. 73]

Marginal note:Refund of duty  — destroyed tobacco products

• 181 (1) The Minister may refund to a tobacco licensee the duty paid on a tobacco product that is re-worked or destroyed by the tobacco licensee in accordance with section 41 if the licensee applies for the refund within two years after the tobacco product is re-worked or destroyed.

• Marginal note:Refund of inventory tax  — destroyed domestic cigarettes

  (2) The Minister may refund to a tobacco licensee the tax imposed and payable under Part 3.1 on taxed cigarettes, as defined in section 58.1, if

  • (a) the licensee provides evidence satisfactory to the Minister that the cigarettes were manufactured in Canada, that they were re-worked or destroyed by the licensee in accordance with section 41 and that either

    • (i) the cigarettes were taxed cigarettes of the licensee and the tax was paid by the licensee, or

    • (ii) the cigarettes were taxed cigarettes of a particular person that is not the licensee, the tax was paid by that particular person and an amount equal to the tax was paid by the licensee to that particular person on account of that tax; and

  • (b) the licensee applies for the refund within two years after the taxed cigarettes are re-worked or destroyed.

• Marginal note:Refund of inventory tax — destroyed imported cigarettes

  (3) The Minister may refund to a particular person the tax imposed and payable under Part 3.1 on taxed cigarettes, as defined in section 58.1, other than cigarettes in respect of which duty has been imposed under section 53, if

  • (a) the particular person provides evidence satisfactory to the Minister that the cigarettes were imported by the particular person, that they were destroyed by the particular person in accordance with the Customs Act or the Customs Tariff and that either

    • (i) the cigarettes were taxed cigarettes of the particular person and the tax was paid by the particular person, or

    • (ii) the cigarettes were taxed cigarettes of another person that is not the particular person, the tax was paid by the other person and an amount equal to the tax was paid by the particular person to the other person on account of that tax; and

  • (b) the particular person applies for the refund within two years after the taxed cigarettes are destroyed.

Marginal note:Refund of duty — destroyed imported tobacco

• 181.1 (1) The Minister may refund to a duty free shop licensee the duty under section 53 that was paid on imported manufactured tobacco that is destroyed by the licensee in accordance with the Customs Act if the licensee applies for the refund within two years after the tobacco is destroyed.

• Marginal note:Refund of inventory tax — destroyed imported cigarettes

  (2) The Minister may refund to a duty free shop licensee the tax imposed and payable under Part 3.1 on taxed cigarettes, as defined in section 58.1, of the licensee in respect of which duty has been imposed under section 53, if

  • (a) the licensee provides evidence satisfactory to the Minister that

    • (i) the cigarettes were taxed cigarettes of the licensee and the tax was paid by the licensee, and

    • (ii) the cigarettes were destroyed by the licensee in accordance with the Customs Act; and

  • (b) the licensee applies for the refund within two years after the cigarettes are destroyed.

Marginal note:Refund of tax to importer if foreign taxes paid

• 182 (1) The Minister may refund, to a person who has imported into a foreign country a tobacco product (as defined in section 55) that was manufactured in Canada and exported by the tobacco licensee who manufactured it to the foreign country in accordance with paragraph 50(4)(a), an amount determined in accordance with subsection (2) in respect of the product if

  • (a) the person provides evidence satisfactory to the Minister that

    • (i) all taxes and duties imposed on the product under the laws of the foreign country having national application have been paid, and

    • (ii) the container containing the product has printed on it or affixed to it tobacco markings; and

  • (b) the person applies to the Minister for the refund within two years after the product was exported to the foreign country.

• Marginal note:Determination of refund

  (2) The amount of the refund under subsection (1) is equal to the lesser of

  • (a) the total of the taxes and duties referred to in subparagraph (1)(a)(i) that are paid in respect of the tobacco product, and

  • (b) the amount of the special duty imposed under paragraph 56(1)(a) in respect of the product that is paid by the tobacco licensee who manufactured it.

• Marginal note:Overpayment of refund or interest

  (3) If an amount has been paid to a person as a refund in respect of a tobacco product exported by the tobacco licensee who manufactured it or as interest in respect of such a refund and a special duty under paragraph 56(1)(b) was imposed in respect of the product, the amount is deemed to be duty payable under this Act by the licensee that became payable during the fiscal month of the licensee in which the amount was paid to the person.

• Marginal note:Refund of special duty to tobacco licensee if foreign taxes paid

  (4) If a refund under subsection (1) has been paid in respect of an exported tobacco product, the Minister may refund to the tobacco licensee who manufactured the product the amount, if any, by which the special duty imposed under paragraph 56(1)(a) in respect of the product and paid by the licensee exceeds the amount of the refund under subsection (1) if the licensee applies to the Minister for the refund under this subsection within two years after the product was exported.

Marginal note:Refund of special duty to duty free shop licensee

• 183 (1) If a duty free shop licensee who holds a licence issued under section 22 sells, in accordance with the Customs Act, imported manufactured tobacco to an individual who is not a resident of Canada and who is about to depart Canada, the Minister may refund to the licensee the special duty paid under section 53 in respect of that portion of the total quantity of the tobacco exported by the individual on their departure that does not exceed

  • (a) in the case of cigarettes, 200 cigarettes;

  • (b) in the case of tobacco sticks, 200 sticks; and

  • (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, 200 g.

• Marginal note:Application

  (2) No refund shall be paid to a duty free shop licensee in respect of a sale of imported manufactured tobacco unless the licensee applies to the Minister for the refund within two years after the sale.

Marginal note:Payment if bad debt

• 184 (1) If an ad valorem duty under section 43 has been paid by a tobacco licensee in respect of an arm’s length sale of cigars and the licensee has established that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off all or part of the debt as a bad debt in the licensee’s books of account, an amount equal to the proportion of the amount of that duty that the amount of the debt written off is of the price for which the cigars were sold may, subject to this Act, be paid to that licensee if the licensee applies for a refund of the amount within two years after the end of the licensee’s fiscal month during which the debt was so written off.

• Marginal note:Recovery of payment

  (2) If a tobacco licensee recovers all or any part of a debt in respect of which an amount is paid to the licensee under subsection (1) (in this subsection referred to as the “refunded amount”), that licensee shall immediately pay to the Receiver General an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

• Marginal note:Definition of arm’s length sale

  (3) In this section, arm’s length sale in respect of cigars means a sale of cigars by a tobacco licensee to a person with whom the licensee is dealing at arm’s length at the time of the sale.

Marginal note:Refund — imported bulk spirits

• 185 (1) If imported bulk spirits on which special duty has been paid are returned by a licensed user to the spirits licensee who supplied them to the licensed user, the Minister may refund the duty to the spirits licensee who paid the duty if the licensee applies for the refund within two years after the spirits are returned.

• Marginal note:Refund — packaged imported spirits

  (2) If imported spirits that are packaged and on which special duty has been paid are returned under prescribed conditions by a licensed user to the excise warehouse of the excise warehouse licensee who supplied them to the licensed user, the Minister may refund the duty to the excise warehouse licensee who paid the duty if the excise warehouse licensee applies for the refund within two years after the spirits are returned.

Marginal note:Refund — alcohol returned to warehouse

186 If packaged alcohol that has been removed from the excise warehouse of an excise warehouse licensee for entry into the duty-paid market is returned in accordance with section 152 to the warehouse, the Minister may refund to the licensee the duty paid on the alcohol if the licensee applies for the refund within two years after the alcohol is returned.

Marginal note:Refund — alcohol in special container

187 If a marked special container of alcohol is returned to the excise warehouse licensee who paid duty on the alcohol, the Minister may refund to the licensee the duty on the alcohol remaining in the container when it is returned if the licensee

• (a) destroys the alcohol in the manner approved by the Minister; and

• (b) applies for the refund within two years after the container is returned.

Marginal note:Refund of duty — destroyed cannabis

187.1 The Minister may refund to a cannabis licensee the duty paid on a cannabis product that is re-worked or destroyed by the cannabis licensee in accordance with section 158.16 if the cannabis licensee applies for the refund within two years after the cannabis product is re-worked or destroyed.

Assessments

Marginal note:Assessments

• 188 (1) The Minister may assess

  • (a) the duty payable by a person for a reporting period of the person; and

  • (b) subject to section 190, interest and any other amount payable by a person under this Act.

• Marginal note:Reassessment

  (2) The Minister may reassess or make an additional assessment of any duty, interest or other amount that may be assessed under subsection (1).

• Marginal note:Allowance of unclaimed amounts

  (3) If, in assessing the duty, interest or other amount payable by a person for a reporting period of the person or other amount payable by a person under this Act, the Minister determines that

  • (a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is

    • (i) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

    • (ii) if the assessment is in respect of interest or other amount, the day on which the interest or other amount became payable by the person,

  • (b) the refund was not claimed by the person in an application filed before the day on which notice of the assessment is sent to the person, and

  • (c) the refund would be payable to the person if it were claimed in an application under this Act filed on the day on which notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the refund expired before that day,

  the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.

• Marginal note:Application of overpayment

  (4) If, in assessing the duty payable by a person for a reporting period of the person, the Minister determines that there is an overpayment of duty payable for the period, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the overpayment

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day on which the person was required to file a return for the period, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

      • (A) the particular day,

      • (B) the day on which the return for the reporting period was filed, and

      • (C) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the overpayment that was not applied under paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

    • (i) the particular day,

    • (ii) the day on which the return for the reporting period was filed, and

    • (iii) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Application of payment

  (5) If, in assessing the duty payable by a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the refund that was not applied under subsection (3)

    against

    • (ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day that is

      • (A) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

      • (B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,

      the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the refund so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the refund that was not applied under subsection (3) or paragraph (a) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

      • (A) the particular day, and

      • (B) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the refund and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the refund that was not applied under any of subsection (3) and paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

    • (i) the particular day, and

    • (ii) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Limitation on refunding overpayments

  (6) An overpayment of duty payable for a reporting period of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

  • (a) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act; or

  • (b) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Limitation

  (7) A refund or a part of the refund that was not applied under subsection (3) and interest on the refund under paragraphs (5)(b) and (c)

  • (a) shall not be applied under paragraph (5)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable by a person unless the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which the person defaulted in paying the outstanding amount and, in the case of a payment under section 176, if that section allowed the person to claim the payment within four years after the person paid the amount in respect of which the payment would be so payable; and

  • (b) shall not be refunded under paragraph (5)(c) unless

    • (i) the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which notice of the assessment is sent to the person, and

    • (ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

      • (A) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act, or

      • (B) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Deemed claim or application

  (8) If, in assessing any duty, interest or other amount payable by a person under this Act, the Minister applies or refunds an amount under subsection (3), (4) or (5),

  • (a) the person is deemed to have claimed the amount in a return or application filed under this Act; and

  • (b) to the extent that an amount is applied against any duty, interest or other amount payable by the person, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid the duty, interest or other amount payable against which it was applied.

• Marginal note:Refund on reassessment

  (9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that

  • (a) begins on the day that is 30 days after the latest of

    • (i) the day on which the person was required to file a return for the reporting period,

    • (ii) the day on which the person filed a return for the reporting period, and

    • (iii) the day on which the amount was paid by the person; and

  • (b) ends on the day on which the refund is paid.

• Marginal note:Refund of interest or penalty

  (9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.

• Marginal note:Meaning of overpayment of duty payable

  (10) In this section, overpayment of duty payable of a person for a reporting period of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the period exceeds the total of

  • (a) the duty payable for the period, and

  • (b) all amounts paid to the person under this Act as a refund for the period.

Marginal note:Assessment of refund

• 189 (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.

• Marginal note:Reassessment

  (2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.

• Marginal note:Payment

  (3) If on assessment under this section the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.

• Marginal note:Restriction

  (4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.

• Marginal note:Interest

  (5) If a refund is paid to a person, the Minister shall pay interest at the prescribed rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

Marginal note:No assessment for penalty

190 No assessment shall be made for any penalty imposed under section 254.

Marginal note:Limitation period for assessments

• 191 (1) Subject to subsections (3) to (7), no assessment shall be made for any duty, interest or other amount payable under this Act

  • (a) in the case of an assessment of the duty payable for a reporting period, more than four years after the later of the day on which the return for the period was required to be filed and the day on which the return was filed;

  • (b) in the case of an assessment for any other amount payable under this Act, more than four years after the amount became payable; or

  • (c) in the case of an assessment for an amount for which a trustee in bankruptcy became liable under section 212, after the earlier of

    • (i) the day that is 90 days after the return on which the assessment is based is filed with, or other evidence of the facts on which the assessment is based comes to the attention of, the Minister, and

    • (ii) the expiry of the period referred to in paragraph (a) or (b), whichever applies in the circumstances.

• Marginal note:Limitation re refund assessment

  (2) Subject to subsections (3) to (7), an assessment of the amount of a refund or any other payment that may be obtained under this Act may be made at any time but a reassessment or additional assessment of an amount paid or applied as a refund under this Act or of an amount paid as interest in respect of an amount paid or applied as a refund under this Act shall not be made more than four years after the application for the amount was filed in accordance with this Act.

• Marginal note:Exception

  (3) Subsections (1) and (2) do not apply to a reassessment of a person made

  • (a) to give effect to a decision on an objection or appeal;

  • (b) with the consent in writing of the person to dispose of an appeal; or

  • (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (7).

• Marginal note:No limitation on assessment if fraud, etc.

  (4) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter,

  • (a) made a misrepresentation that is attributable to their neglect, carelessness or wilful default;

  • (b) committed fraud

    • (i) in making or filing a return under this Act,

    • (ii) in making or filing an application for a refund under this Act, or

    • (iii) in supplying or failing to supply any information under this Act; or

  • (c) filed a waiver under subsection (8) that is in effect at that time.

• Marginal note:No limitation if payment for another reporting period

  (5) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or on account of duty payable for a reporting period of the person that was payable for another reporting period of the person, the Minister may at any time make an assessment for that other period in respect of that matter.

• Marginal note:Reduction of duty — reporting period

  (6) If the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of duty payable by a person and, by reason of the reduction, any refund or other payment claimed by the person for a reporting period, or in an application for a refund or other payment, should be decreased, the Minister may at any time assess or reassess that reporting period or that application only for the purpose of taking the reduction of duty into account in respect of the refund or other payment.

• Marginal note:Alternative basis or argument

  (7) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable or remittable by a person under this Act, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless on an appeal under this Act

  • (a) there is relevant evidence that the person is no longer able to adduce without the leave of the court; and

  • (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced.

• Marginal note:Limitation

  (7.1) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (7) in support of a particular assessment of the person, the Minister shall not reassess for an amount that is greater than the total amount of the particular assessment.

• Marginal note:Exception

  (7.2) Subsection (7.1) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Act at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Act were read without reference to subsection (7).

• Marginal note:Waiver

  (8) Any person may, within the time otherwise limited by subsection (1) or (2) for an assessment, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the prescribed form and manner specifying the matter in respect of which the person waives the application of that subsection.

• Marginal note:Revoking waiver

  (9) Any person who files a waiver under subsection (8) may revoke it on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner.

Marginal note:Minister not bound

• 192 (1) The Minister is not bound by any return, application or information provided by or on behalf of a person and may make an assessment despite any return, application or information provided or not provided.

• Marginal note:Liability not affected

  (2) Liability to pay any duty, interest or other amount is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Binding effect — unincorporated body

  (3) If a person (referred to in this subsection as the “body”) that is not an individual or a corporation is assessed in respect of any matter,

  • (a) the assessment is not invalid only because one or more other persons (each of which is referred to in this subsection as a “representative”) who are liable for obligations of the body did not receive a notice of the assessment;

  • (b) the assessment is binding on each representative of the body, subject to a reassessment of the body and the rights of the body to object to or appeal from the assessment under this Act; and

  • (c) an assessment of a representative in respect of the same matter is binding on the representative, subject only to a reassessment of the representative and the rights of the representative to object to or appeal from the assessment of the representative under this Act on the grounds that the representative is not a person who is liable to pay an amount to which the assessment of the body relates, the body has been reassessed in respect of that matter or the assessment of the body in respect of that matter has been vacated.

• Marginal note:Assessment deemed valid

  (4) Subject to being reassessed or vacated as a result of an objection or appeal under this Act, an assessment is deemed to be valid and binding despite any error, defect or omission in the assessment or in any proceeding under this Act relating to it.

• Marginal note:Irregularities

  (5) An appeal from an assessment shall not be allowed by reason only of an irregularity, informality, omission or error on the part of any person in the observation of a directory provision of this Act.

Marginal note:Notice of assessment

• 193 (1) After making an assessment, the Minister shall send to the person assessed a notice of the assessment.

• Marginal note:Scope of notice

  (2) A notice of assessment may include assessments in respect of any number or combination of reporting periods, refunds or amounts payable under this Act.

Marginal note:Assessment payable

194 Any amount assessed by the Minister is payable by the person assessed as of the date of the assessment.

Objections to Assessment

Marginal note:Objection to assessment

• 195 (1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

• Marginal note:Issue to be decided

  (2) A notice of objection shall

  • (a) reasonably describe each issue to be decided;

  • (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the person in respect of each issue.

• Marginal note:Late compliance

  (3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

• Marginal note:Limitation on objections

  (4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

  • (a) only if the person complied with subsection (2) in the notice with respect to that issue; and

  • (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

• Marginal note:Application of subsection (4)

  (5) If a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

• Marginal note:Limitation on objections

  (6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

• Marginal note:Acceptance of objection

  (7) The Minister may accept a notice of objection even though it was not filed in the prescribed form and manner.

• Marginal note:Consideration of objection

  (8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment.

• Marginal note:Waiving reconsideration

  (9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

• Marginal note:Notice of decision

  (10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall send notice of the Minister’s decision by registered or certified mail to the person objecting.

Marginal note:Extension of time by Minister

• 196 (1) If no objection to an assessment is filed under section 195 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

• Marginal note:Contents of application

  (2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

• Marginal note:How application made

  (3) An application must be made by delivering or mailing to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Agency the application accompanied by a copy of the notice of objection.

• Marginal note:Defect in application

  (4) The Minister may accept an application even though it was not made in accordance with subsection (3).

• Marginal note:Duties of Minister

  (5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by registered or certified mail.

• Marginal note:Date of objection if application granted

  (6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

• Marginal note:Conditions — grant of application

  (7) No application shall be granted under this section unless

  • (a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted it to be made.

Appeal

Marginal note:Extension of time by Tax Court

• 197 (1) A person who has made an application under section 196 may apply to the Tax Court to have the application granted after either

  • (a) the Minister has refused the application; or

  • (b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

• Marginal note:When application may not be made

  (2) No application may be made after the expiry of 30 days after the decision referred to in subsection 196(5) was mailed to the person.

• Marginal note:How application made

  (3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the documents delivered or mailed under subsection 196(3).

• Marginal note:Copy to the Commissioner

  (4) The Tax Court must send a copy of the application to the Commissioner.

• Marginal note:Powers of Court

  (5) The Tax Court may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

• Marginal note:When application to be granted

  (6) No application shall be granted under this section unless

  • (a) the application under subsection 196(1) was made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application under subsection 196(1) was made as soon as circumstances permitted it to be made.