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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-09-11 and last amended on 2022-09-01. Previous Versions

PART 4.1Cannabis (continued)

Cannabis Production and Stamping (continued)

Marginal note:Prohibition — cannabis for sale

 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.

  • 2018, c. 12, s. 73

Marginal note:Selling, etc., unstamped cannabis

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Sale or distribution by licensee

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Packaging and stamping of cannabis

 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.

  • 2018, c. 12, s. 73

Marginal note:Notice — absence of stamping

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Cannabis — waste removal

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Re-working or destruction of cannabis

 A cannabis licensee may re-work or destroy a cannabis product in the manner authorized by the Minister.

  • 2018, c. 12, s. 73

Responsibility for Cannabis

Marginal note:Responsibility

 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.

  • 2018, c. 12, s. 73

Marginal note:Person not responsible

 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.

  • 2018, c. 12, s. 73

Imposition and Payment of Duty on Cannabis

Marginal note:Imposition — flat-rate duty

  •  (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).

  • 2018, c. 12, s. 73

Marginal note:Imposition — additional cannabis duty

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Duty on imported cannabis

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Additional cannabis duty on imported cannabis

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Application of Customs Act

 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.

  • 2018, c. 12, s. 73

Marginal note:Value for duty

 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.

  • 2018, c. 12, s. 73

Marginal note:Duty on cannabis taken for use

  •  (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.

  • 2018, c. 12, s. 73
 
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