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Excise Act (R.S.C., 1985, c. E-14)

Full Document:  

Act current to 2021-06-28 and last amended on 2019-06-17. Previous Versions

PART IGeneral (continued)

Bonding and Warehousing (continued)

Marginal note:When duty computed

 At the time of entering goods for warehouse, the amount of duty shall be computed and ascertained and stated in the entry.

  • R.S., c. E-12, s. 55

Marginal note:Transfer of goods other than cigars and manufactured tobacco in bond

  •  (1) Goods, other than cigars and manufactured tobacco, warehoused under this Act may, without payment of duty, be transferred or removed from one bonding warehouse to another in bond, exported in bond or released from bond to accredited representatives for their personal or official use, if the transfer, removal, exportation or release is in accordance with the regulations and the ministerial regulations.

  • Marginal note:Removal to customs bonded warehouse or duty free shop

    (2) Goods subject to excise, other than cigars and manufactured tobacco, may, without payment of duty, be removed from a bonding warehouse

    • (a) to a bonded warehouse, licensed as such under the Customs Tariff, if the goods are

      • (i) designated for delivery as ships’ stores,

      • (ii) for sale to accredited representatives for their personal or official use, or

      • (iii) for export; or

    • (b) to a duty free shop, licensed as such under the Customs Act, if the goods are for sale to persons who are about to leave Canada.

  • Marginal note:Delivery and sale to be in accordance with regulations

    (3) Goods removed under subsection (2) shall be delivered and sold in accordance with any ministerial regulations that apply.

  • R.S., 1985, c. E-14, s. 58
  • R.S., 1985, c. 7 (2nd Supp.), s. 63
  • 1993, c. 25, s. 37
  • 1995, c. 41, s. 109
  • 1999, c. 17, s. 144(E)
  • 2001, c. 16, s. 9
  • 2002, c. 22, s. 425(F)

Marginal note:Definitions

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

    foreign brand tobacco

    foreign brand tobacco means tobacco in respect of which the excise tax imposed under section 23.13 of the Excise Tax Act is not payable because of section 23.3 of that Act. (tabac de marque étrangère)

    manufactured tobacco

    manufactured tobacco does not include partially manufactured tobacco or foreign brand tobacco. (tabac fabriqué)

    partially manufactured tobacco

    partially manufactured tobacco means a tobacco product made by a tobacco manufacturer that is cut filler or cut rag or that is manufactured less fully than cut filler or cut rag. (tabac partiellement fabriqué)

  • Marginal note:Categories of manufactured tobacco

    (2) For the purposes of subsection (4), each of the following constitutes a category of manufactured tobacco:

    • (a) cigarettes;

    • (b) tobacco sticks; and

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

  • Marginal note:Removal of manufactured tobacco in bond

    (3) Manufactured tobacco may, without payment of duty, be removed from a bonding warehouse only if

    • (a) it is

      • (i) removed by its manufacturer and exported in bond in accordance with subsection (4) and not for delivery to a foreign duty free shop or as foreign ships’ stores,

      • (ii) removed by its manufacturer and entered into another bonding warehouse in bond, or

      • (iii) released to accredited representatives for their personal or official use; and

    • (b) the removal and exportation, entry or release, as the case may be, are in accordance with the regulations and the ministerial regulations.

  • Marginal note:Maximum quantity permitted to be exported in bond

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

  • Marginal note:Quantities to be excluded for the purpose of subsection (4)

    (5) The total quantities referred to in subsection (4) shall not include any quantity of manufactured tobacco that was exported by the manufacturer for delivery to a foreign duty free shop or as foreign ships’ stores.

  • Marginal note:Removal of cigars in bond

    (6) Cigars may, without payment of duty, be removed from a bonding warehouse only if

    • (a) they are

      • (i) removed by their manufacturer and

        • (A) exported in bond,

        • (B) entered into another bonding warehouse in bond,

        • (C) entered into a bonded warehouse, licensed as such under the Customs Tariff, if the person entering the cigars into the bonded warehouse certifies to the manufacturer that they are for delivery as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act,

        • (D) transferred to a duty free shop, licensed as such under the Customs Act, if the operator of the duty free shop certifies to the manufacturer that the cigars are for sale to persons who are about to leave Canada, or

        • (E) delivered as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, or

      • (ii) released to accredited representatives for their personal or official use; and

    • (b) the removal and export, entry, transfer, sale, delivery or release, as the case may be, are in accordance with the regulations and the ministerial regulations.

  • Marginal note:Removal of partially manufactured tobacco or foreign brand tobacco in bond

    (7) Partially manufactured tobacco or foreign brand tobacco may, without payment of duty, be removed by its manufacturer from a bonding warehouse only if

    • (a) it is entered into another bonding warehouse in bond or exported in bond and not for delivery to a foreign duty free shop or as foreign ships’ stores; and

    • (b) the removal and entry or export, as the case may be, are in accordance with the regulations and the ministerial regulations.

  • Marginal note:Diversion

    (8) A person who has acquired goods that are manufactured tobacco, foreign brand tobacco or cigars is liable to pay the duty that would have been payable on the goods at the time the goods were completely manufactured, if the goods

    • (a) have been relieved, under this Act or otherwise, from the duty because of the purpose for which the person acquired them;

    • (b) are removed from a bonded warehouse licensed as such under the Customs Tariff, sold or used by the person for another purpose; and

    • (c) would not have been relieved from the duty if the person had acquired them for the other purpose.

  • Marginal note:Duty payable at time of acquisition

    (9) The duty a person is liable to pay under subsection (8) on goods is deemed to have become payable by the person at the time the person acquired the goods.

  • 2001, c. 16, s. 9
  • 2002, c. 22, s. 425(F)

Marginal note:Goods entered for warehouse

 Goods entered for warehouse shall be marked and described in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 59
  • 1999, c. 17, s. 144(E)
 
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