Excise Act, 2001 (S.C. 2002, c. 22)

Excise Warehouses

Marginal note:Restriction — entering vaping products

158.67 No person shall enter into an excise warehouse

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

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

Marginal note:Prohibition on removal

• 158.68 (1) Except if prescribed circumstances exist, no person shall remove from an excise warehouse vaping products manufactured in Canada.

• Marginal note:Removal of Canadian manufactured vaping products

  (2) Subject to the regulations, a vaping product manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured it only if it is

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

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

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

  (3) Subject to the regulations, vaping products manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 158.53.

Marginal note:Removal of imported vaping products

• 158.69 (1) Except if prescribed circumstances exist, no person shall remove imported vaping products from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, imported vaping products may be removed from an excise warehouse

  • (a) for delivery to another excise warehouse;

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

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

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 or a vaping product 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 or vaping product licensee

  (1.01) For the purposes of this Act, the fiscal months of a cannabis licensee or a vaping product 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 and section 159.2, 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.

Marginal note:Definition of calendar quarter

• 159.2 (1) In this section, calendar quarter means a period of three months beginning on the first day of January, April, July or October.

• Marginal note:Reporting period — calendar quarters

  (2) On application by a cannabis licensee, the Minister may, in writing, authorize the reporting periods of the cannabis licensee to be calendar quarters, beginning on the first day of a calendar quarter.

• Marginal note:Application — form and filing

  (3) An application made by a cannabis licensee under subsection (2) is to be

  • (a) made in prescribed form containing prescribed information; and

  • (b) filed with the Minister in prescribed manner on or before the last day of the first month of the calendar quarter for which the authorization is to take effect or any later day that the Minister may allow.

• (4) [Repealed, 2024, c. 15, s. 155]

• Marginal note:Revocation by Minister

  (5) The Minister may revoke an authorization under subsection (2) in respect of a cannabis licensee if

  • (a) the cannabis licensee requests in writing that the Minister do so;

  • (b) the cannabis licensee fails to comply with the Act; or

  • (c) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (6) If the Minister revokes an authorization in respect of a cannabis licensee, the following rules apply:

  • (a) the Minister shall send a notice in writing of the revocation to the cannabis licensee and shall specify in the notice the fiscal month of the cannabis licensee for which the revocation becomes effective; and

  • (b) if the revocation becomes effective before the last day of a calendar quarter, the period beginning on the first day of the calendar quarter and ending immediately before the first day of that fiscal month is deemed to be a reporting period of the cannabis licensee.

• (7) [Repealed, 2024, c. 15, s. 155]

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:Definition of electronic payment

• 163 (1) In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (e) or by any electronic means specified by the Minister.

• Marginal note:Electronic payment

  (2) Every person that is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through

  • (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 that is 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 that is 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.