Excise Act, 2001 (S.C. 2002, c. 22)

Assented to 2002-06-13

Marginal note:Application of Customs Act

 The duties imposed under sections 42 and 43 on imported raw leaf tobacco and tobacco 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
  •  (1) The duties imposed under sections 42 and 43 are relieved on a tobacco product that is not stamped.

  • Marginal note:Tobacco imported by an individual for personal use

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

Marginal note:Duty relieved — raw leaf tobacco

 The duty imposed under section 42 is relieved on raw leaf tobacco that is imported by a tobacco licensee for manufacture by the licensee.

Marginal note:Duty relieved — stamped tobacco imported by individual

 The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured in Canada and is stamped.

Marginal note:Duty relieved — importation for destruction

 The duty imposed under paragraph 42(1)(b) is relieved on stamped manufactured tobacco that was manufactured in Canada by a tobacco licensee and that is imported by the licensee for re-working or destruction in accordance with section 41.

Excise Warehouses

Marginal note:Restriction — entering tobacco

 No person shall enter into an excise warehouse

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

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

Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section.

    “Canadian manufactured tobacco”

    « tabac fabriqué canadien »

    “Canadian manufactured tobacco” means manufactured tobacco that is manufactured in Canada but does not include partially manufactured tobacco or foreign brand tobacco.

    “foreign brand tobacco”

    « tabac de marque étrangère »

    “foreign brand tobacco” means manufactured tobacco in respect of which the special duty imposed under section 56 is relieved because of section 58.

  • Marginal note:Categories of Canadian manufactured tobacco

    (2) For the purposes of subsection (5), each of the following constitutes a category of Canadian manufactured tobacco:

    • (a) cigarettes;

    • (b) tobacco sticks; and

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

  • Marginal note:Prohibition on removal

    (3) No person shall remove from an excise warehouse or a special excise warehouse a tobacco product manufactured in Canada.

  • Marginal note:Exception for Canadian manufactured tobacco

    (4) Subject to the regulations, Canadian manufactured tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is

    • (a) for export by the licensee in accordance with subsection (5) and not for delivery to a foreign duty free shop or as foreign ships’ stores;

    • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the Canadian manufactured tobacco; or

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

  • Marginal note:Maximum quantity permitted to be exported from excise warehouse

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

  • Marginal note:Quantities to be excluded for the purposes of subsection (5)

    (6) In subsection (5), the total quantity of a category of Canadian manufactured tobacco manufactured by a licensee in the preceding calendar year does not include any quantity of that category that was exported by the licensee for delivery to a foreign duty free shop or as foreign ships’ stores.

  • Marginal note:Exception for cigars

    (7) Subject to the regulations, cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them only if they are

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

    • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the cigars;

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

    • (d) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations;

    • (e) for delivery to another excise warehouse, if the excise warehouse licensee of the other excise warehouse certifies in the prescribed form to the tobacco licensee that the cigars are for delivery as ships’ stores in accordance with the Ships’ Stores Regulations; or

    • (f) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act.

  • Marginal note:Exception for partially manufactured tobacco or foreign brand tobacco

    (8) Subject to the regulations, partially manufactured tobacco or foreign brand tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is exported by the licensee and not for delivery to a foreign duty free shop or as foreign ships’ stores.

  • Marginal note:Removal from warehouse — ships’ stores

    (9) Subject to the regulations, cigars manufactured in Canada may be removed from an excise warehouse referred to in paragraph (7)(e) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations.

  • Marginal note:Removal from warehouse for reworking or destruction

    (10) Subject to the regulations, tobacco products manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for reworking or destruction by the licensee in accordance with section 41.

  • Marginal note:Removal from special excise warehouse — accredited representatives

    (11) Subject to the regulations, Canadian manufactured tobacco and cigars may be removed from a special excise warehouse for delivery to an accredited representative for their personal or official use if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars.