Excise Act, 2001 (S.C. 2002, c. 22)

Assented to 2002-06-13

Penalties

Marginal note:Contravention of section 34 or 37

 Every tobacco licensee who contravenes section 34 or 37 is liable to a penalty equal to 200% of the duty that was imposed on the tobacco product to which the contravention relates.

Marginal note:Contravention of section 38, 40, 41, 49, 61, 99, 149 or 151

 Every person who contravenes section 38, 40, 41, 49, 61, 99, 149 or 151 is liable to a penalty of not more than $25,000.

Marginal note:Penalty for unauthorized export of raw leaf tobacco

 Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $25,000.

Marginal note:Diversion of black stock tobacco
  •  (1) Every tobacco licensee is liable to a penalty if manufactured tobacco on which duty was imposed under section 42 at a rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1 is

    • (a) delivered by the licensee other than to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations; or

    • (b) exported by the licensee other than for delivery to a foreign duty free shop or as foreign ships’ stores.

  • Marginal note:Amount of penalty

    (2) The amount of the penalty is equal to 200% of the total of

    • (a) the amount by which

      • (i) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1

      exceeds

      • (ii) the duty that was imposed under section 42 on the tobacco, and

    • (b) the amount, if any, of special duty that was payable under paragraph 56(1)(b) in respect of the tobacco.

Marginal note:Diversion of non-duty-paid alcohol
  •  (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Diversion of duty-free tobacco

    (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Diversion of duty-free cigars

    (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose.

  • Marginal note:Diversion of duty-free tobacco in special excise warehouse

    (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose.

  • Marginal note:Diversion of imported tobacco

    (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Exception

    (6) A licensee who would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol or tobacco product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse.

Marginal note:Penalty in respect of unaccounted tobacco

 Every excise warehouse licensee and every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product entered into their excise warehouse or special excise warehouse, as the case may be, if the licensee cannot account for the product

  • (a) as being in the warehouse;

  • (b) as having been removed from the warehouse in accordance with this Act; or

  • (c) as having been destroyed by fire while kept in the warehouse.

Marginal note:Other diversions

 Unless section 237 applies, every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol or a tobacco product if

  • (a) it was acquired by the person and duty was not payable because of the purpose for which the person acquired it or because of its destination; and

  • (b) it is sold or used for a purpose or sent to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination.

Marginal note:Contravention of subsection 50(5)

 Every tobacco licensee who contravenes subsection 50(5) is liable to a penalty equal to the total of

  • (a) $0.25995 per cigarette that was removed in contravention of that subsection,

  • (b) $0.159966 per tobacco stick that was removed in contravention of that subsection, and

  • (c) $149.966 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

Marginal note:Contravention of section 71

 Every person who contravenes section 71 is liable to a penalty equal to 200% of the duty that was imposed on the bulk spirits to which the contravention relates.

Marginal note:Contravention of section 72

 Every person who contravenes section 72 is liable to a penalty equal to $1.0244 per litre of wine to which the contravention relates.

Marginal note:Contravention of section 73, etc.

 Every person who contravenes any of sections 73, 76 or 89 to 91 is liable to a penalty equal to

  • (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or

  • (b) if the contravention relates to wine, $0.5122 per litre of that wine.

 
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