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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-07-25 and last amended on 2022-06-30. Previous Versions

PART 8Transitional Provisions and Consequential, Related and Coordinating Amendments

Transitional Provisions

Marginal note:Meaning of implementation date

 In sections 306 to 320, implementation date means the day on which Parts 3 and 4 come into force.

Marginal note:Transitional treatment of duties on packaged spirits

 The following rules apply to packaged spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was imposed under that Act or levied under the Customs Tariff but that had not become payable before the implementation date:

  • (a) as of that day, the duty is relieved;

  • (b) as of that day, the Excise Act ceases to apply in respect of the spirits;

  • (c) in the case of imported packaged spirits that have not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of them as though they were imported on that day; and

  • (d) in the case of any other packaged spirits, this Act applies in respect of them as though

    • (i) they were produced and packaged in Canada on that day by the person having possession of them immediately before that day and the person were permitted under this Act to produce and package them, and

    • (ii) if the spirits are in the possession of a duty free shop or an accredited representative or delivered as ships’ stores in accordance with the Ships’ Stores Regulations, they had been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(1)(a) on that day.

Marginal note:Transitional treatment of duties on bulk spirits

  •  (1) The following rules apply to bulk spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was imposed under that Act or levied under the Customs Tariff but that had not become payable before the implementation date:

    • (a) as of that day, the duty is relieved;

    • (b) as of that day, the Excise Act ceases to apply in respect of the spirits;

    • (c) in the case of imported bulk spirits that have not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of them as though they were imported on that day; and

    • (d) in the case of any other bulk spirits, this Act applies in respect of them as though they were produced in Canada on that day by the person having possession of them immediately before that day.

  • Marginal note:Transitional treatment of bulk spirits imported for bottling or blending

    (2) The following rules apply to bulk spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was levied under the Customs Tariff and remitted under the Distilled Spirits for Bottling in Bond Remission Order or the Imported Spirits for Blending Remission Order before the implementation date:

    • (a) as of that day, the duty imposed on the spirits under subsection 135(1) of the Excise Act when they were entered into a distillery is relieved;

    • (b) as of that day, the Excise Act ceases to apply in respect of the spirits; and

    • (c) this Act applies in respect of them as though they were produced in Canada on that day by the person having possession of them immediately before that day.

Marginal note:Transitional treatment of excise taxes on wine

 The following rules apply to wine on which tax was imposed under section 27 of the Excise Tax Act but had not become payable before the implementation date:

  • (a) as of that day, the tax is relieved;

  • (b) as of that day, Parts III, VI and VII of the Excise Tax Act cease to apply in respect of the wine;

  • (c) in the case of imported wine that has not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of the wine as though it were imported on that day;

  • (d) in the case of bulk wine to which paragraph (c) does not apply, this Act applies in respect of it as though it were produced in Canada on that day

    • (i) if the wine is located in a ferment-on-premises facility or at the residence of an individual, by the individual who owned the wine immediately before that day, or

    • (ii) in any other case, by the person having possession of it immediately before that day; and

  • (e) in the case of wine to which neither paragraph (c) nor (d) apply, this Act applies in respect of it as though

    • (i) it were produced and packaged in Canada on that day by the person having possession of it immediately before that day and the person were permitted under this Act to produce and package it, and

    • (ii) in the case of wine in the possession of a duty free shop or an accredited representative or delivered as ships’ stores in accordance with the Ships’ Stores Regulations, it had been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(1)(a) on that day.

Marginal note:Transitional treatment of packaged wine in inventory of small manufacturers

  •  (1) If tax under Part IV of the Excise Tax Act is not payable in respect of packaged wine because it was produced by a person who is exempt from payment of excise tax under the Small Manufacturers or Producers Exemption Regulations, subsection 135(1) does not apply to the wine if it was packaged before the implementation date.

  • Marginal note:Determination of sales for transitional purposes

    (2) For the period beginning on the implementation date and ending on the day that is one year after that day, the words “products subject to duty under subsection (1), or would have been so subject to duty in the absence of this subsection,” in paragraph 135(2)(b) shall be read as “goods referred to in paragraph 2(1)(a) of the Small Manufacturers or Producers Exemption Regulations”.

Marginal note:Application of Act to tax-paid packaged wine

  •  (1) If packaged wine on which tax imposed under section 27 of the Excise Tax Act became payable before the implementation date is entered into the excise warehouse of an excise warehouse licensee on or before the end of six months after that day, this Act applies in respect of the wine as though it were produced and packaged in Canada by the licensee and the licensee were permitted under this Act to produce and package it on the day it is entered into the warehouse.

  • Marginal note:Refund of excise tax paid on packaged wine

    (2) If the tax imposed under section 27 of the Excise Tax Act in respect of the wine entered into the warehouse has been paid, the licensee may apply to the Minister for a refund of the tax.

  • Marginal note:Limitation

    (3) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Application of Act to tax-paid bulk wine

  •  (1) If bulk wine on which tax imposed under section 27 of the Excise Tax Act became payable before the implementation date is entered into the specified premises of a licensed user on that day, this Act applies in respect of the wine as though it were produced in Canada on that day by the user and the user were permitted to produce the wine.

  • Marginal note:Refund of excise tax paid on bulk wine

    (2) If the tax imposed under section 27 of the Excise Tax Act in respect of the wine entered into the specified premises of a licensed user has been paid, the user may apply to the Minister for a refund of the tax.

  • Marginal note:Limitation

    (3) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Definitions

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

    bonded manufacturer

    bonded manufacturer means a person who holds, before the implementation date, a licence under subsection 182(1) of the Excise Act. (fabricant entrepositaire)

    licensed pharmacist

    licensed pharmacist means a person who holds, before the implementation date, a licence under subsection 136(2) of the Excise Act. (pharmacien titulaire de licence)

  • Marginal note:Application of Act to spirits in possession of bonded manufacturer or licensed pharmacist

    (2) If, on the implementation date, a bonded manufacturer or a licensed pharmacist possesses, in accordance with their licence, spirits that were produced before that day, the following rules apply:

    • (a) as of that day, the Excise Act ceases to apply in respect of the spirits; and

    • (b) this Act applies in respect of them as though

      • (i) in the case of bulk spirits, the spirits were produced in Canada on that day by the manufacturer or the pharmacist and, if they are a licensed user, they were permitted to produce the spirits, or

      • (ii) in the case of packaged spirits, the spirits were produced and packaged in Canada on that day by the manufacturer or the pharmacist and they were permitted to produce and package the spirits.

  • Marginal note:Refund of duty paid by bonded manufacturer or licensed pharmacist

    (3) If, on the implementation date, a bonded manufacturer or licensed pharmacist possesses spirits on which duty at a rate determined by the application of subsection 1(2) or (3) of Part I of the schedule to the Excise Act was paid, the manufacturer or pharmacist may apply to the Minister for a refund of the duty.

  • Marginal note:Limitation

    (4) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Application of Act to spirits to be used for scientific purposes

 If a person described by any of paragraphs 135(2)(a) to (d) of the Excise Act possesses, on the implementation date, spirits in respect of which a drawback under subsection 135(2) of that Act is granted at any time, the following rules apply:

  • (a) as of that day, the Excise Act ceases to apply in respect of the spirits;

  • (b) this Act applies in respect of them as though

    • (i) in the case of bulk spirits, the spirits were produced in Canada on that day by the person and, if the person is a registered user, the person were permitted to produce the spirits, or

    • (ii) in the case of packaged spirits,

      • (A) the spirits were produced and packaged in Canada on that day by the person,

      • (B) the person were permitted to produce and package the spirits, and

      • (C) if the person is a registered user, the spirits were, on that day, entered into an excise warehouse and then removed from the warehouse in accordance with subparagraph 147(1)(a)(iii); and

  • (c) if the spirits are contained in a special container and the person is a registered user

    • (i) the person shall, despite subsection 78(1), mark the container on that day, and

    • (ii) the container is deemed to have been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(2)(a) on that day.

Marginal note:Application of Act to alcohol in bottle-your-own premises

 The following rules apply to alcohol contained in a special container located on a person’s bottle-your-own premises on the implementation date:

  • (a) the person shall, despite subsections 78(1) and 83(1), mark the container on that day;

  • (b) in the case of spirits, this Act applies in respect of them as though the duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, that had become payable before that day in respect of them were imposed and, if the duty is paid, paid under this Act; and

  • (c) in the case of wine,

    • (i) for the purposes of subsection 135(1), section 82 does not apply to the marking of the container under paragraph (a), and

    • (ii) this Act applies in respect of the wine as though the tax under section 27 of the Excise Tax Act that had become payable before that day in respect of it were a duty that was imposed and, if the tax is paid, paid under this Act.

Marginal note:Removal of alcohol from customs bonded warehouse

  •  (1) If packaged alcohol is located in a customs bonded warehouse on the implementation date,

    • (a) the alcohol shall be removed from the warehouse; and

    • (b) any duty on the alcohol that is imposed under this Act or levied under section 21.2 of the Customs Tariff as a result of the operation of section 306 or 308 is payable on that day unless the alcohol is without delay entered into an excise warehouse.

  • Marginal note:Exception

    (2) Subsection (1) does not apply if the alcohol in the customs bonded warehouse is to be

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

    • (b) delivered

      • (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) as ships’ stores in accordance with the Ships’ Stores Regulations, or

      • (iv) to an air carrier that is licensed under section 69 or 73 of the Canada Transportation Act to operate an international air service.

Marginal note:Transitional application of Distillery Regulations

  •  (1) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 7, 8, 9, 12 and 15 of the Distillery Regulations, C.R.C., c. 569, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.

  • Marginal note:Transitional application of Distillery Departmental Regulations

    (2) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 13 and 14 of the Distillery Departmental Regulations, C.R.C., c. 570, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.

  • 2007, c. 18, s. 131
 
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