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Excise Act, 2001 (S.C. 2002, c. 22)

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Act current to 2022-07-13 and last amended on 2022-06-30. Previous Versions

PART 4.1Cannabis (continued)

Imposition and Payment of Duty on Cannabis (continued)

Marginal note:Duty on unaccounted cannabis

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Definition of commencement day

  •  (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.

  • 2018, c. 12, s. 73

Marginal note:Duty relieved — cannabis imported by licensee

 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.

  • 2018, c. 12, s. 73

Marginal note:Duty relieved — prescribed circumstances

 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.

  • 2018, c. 12, s. 73

Marginal note:Duty not payable

 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.

  • 2018, c. 12, s. 73

Marginal note:Quantity of cannabis

 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.

  • 2018, c. 12, s. 73

Marginal note:Delivery to purchaser

 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.

  • 2018, c. 12, s. 73

Marginal note:Time of delivery

 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.

  • 2018, c. 12, s. 73

Marginal note:Dutiable amount

 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.

  • 2018, c. 12, s. 73

PART 4.2Vaping Products

Marginal note:Issuance of vaping excise stamps

  •  (1) On application in the prescribed form and manner, the Minister may issue, to a vaping product licensee or to a prescribed person that is importing vaping products, stamps the purpose of which is to indicate that vaping duty and, if applicable, additional vaping duty have been paid on a vaping product.

  • Marginal note:Quantity of vaping excise stamps

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

  • Marginal note:Security

    (3) No person shall be issued a vaping 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 vaping excise stamps

    (4) The Minister may authorize a producer of vaping excise stamps to supply, on the direction of the Minister, vaping 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 vaping excise stamps shall be subject to the approval of the Minister.

Marginal note:Counterfeit vaping excise stamps

 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 vaping excise stamp.

Marginal note:Unlawful possession of vaping excise stamps

  •  (1) No person shall possess a vaping excise stamp that has not been affixed to the container of a vaping product in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty has been paid on the vaping product.

  • Marginal note:Exceptions — possession

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

    • (a) the person that lawfully produced the vaping excise stamp;

    • (b) the person to which the vaping excise stamp is issued;

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

    • (d) a prescribed person.

Marginal note:Unlawful supply of vaping excise stamps

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

Marginal note:Cancellation of vaping excise stamps

 The Minister may

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

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

Marginal note:Notice — absence of stamping

  •  (1) The absence on a vaping product of stamping that indicates that vaping duty has been paid is notice to all persons that vaping duty has not been paid on the vaping product.

  • Marginal note:Notice — specified vaping province

    (2) The absence on a vaping product of stamping that indicates that additional vaping duty in respect of a specified vaping province has been paid is notice to all persons that additional vaping duty in respect of the specified vaping province has not been paid on the vaping product.

Marginal note:Vaping product markings — warehousing

  •  (1) Subject to subsection (4), no person shall enter into an excise warehouse a container of vaping products unless the container has printed on it, or affixed to it, vaping product markings and other prescribed information.

  • (2) [Not in force]

  • Marginal note:Delivery of imported stamped vaping products

    (3) A container of imported vaping products that were manufactured outside Canada and are stamped may be delivered to a customs bonded warehouse.

  • Marginal note:Exception in prescribed circumstances

    (4) A container of vaping products does not require vaping product markings to be printed on it, or affixed to it, if prescribed circumstances exist.

Marginal note:Application of Customs Act

 The duties imposed under sections 158.57 and 158.58 on imported vaping 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 — unstamped vaping products

  •  (1) The duties imposed under sections 158.57 and 158.58 are relieved on a vaping product that is not stamped.

  • Marginal note:Vaping products imported for personal use

    (2) Subsection (1) does not apply to the importation of vaping 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.

 
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