Excise Act, 2001 (S.C. 2002, c. 22)

Assented to 2002-06-13

Marginal note:No sale or distribution except in original package

 No person shall

  • (a) sell or offer for sale cigars otherwise than in or from the original package;

  • (b) sell or offer for sale manufactured tobacco otherwise than in the original package; or

  • (c) distribute free of charge for advertising purposes any tobacco product otherwise than in or from the original package.

Marginal note:Packaging and stamping of tobacco

 A tobacco licensee who manufactures a tobacco product shall not enter the tobacco product into the duty-paid market unless

  • (a) the product has been packaged by the licensee;

  • (b) the package has printed on it prescribed information; and

  • (c) the product is stamped at the time of packaging.

Marginal note:Packaging and stamping of imported tobacco
  •  (1) If a tobacco product or raw leaf tobacco is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,

    • (a) be packaged in a package that has printed on it prescribed information; and

    • (b) be stamped.

  • Marginal note:Exception for certain importations

    (2) Subsection (1) does not apply to

    • (a) partially manufactured tobacco that is imported by a tobacco licensee for further manufacturing by the licensee;

    • (b) a tobacco product that a tobacco licensee is authorized to import under subsection 41(2);

    • (c) a tobacco product that is imported by an individual for their personal use in quantities not in excess of prescribed limits; or

    • (d) raw leaf tobacco that is imported by a tobacco licensee.

Marginal note:Absence of stamping — notice

 The absence of stamping on a tobacco product is notice to all persons that duty has not been paid on the product.

Marginal note:Unstamped products to be warehoused

 If a tobacco product manufactured in Canada is not stamped by a tobacco licensee, the tobacco licensee shall immediately enter the product into the licensee’s excise warehouse.

Marginal note:No warehousing of tobacco without markings
  •  (1) No person shall enter into an excise warehouse a container of tobacco products unless the container has printed on it or affixed to it tobacco markings and other prescribed information.

  • Marginal note:No delivery of imported tobacco without markings

    (2) No person shall deliver a container of imported tobacco products that does not have printed on it or affixed to it tobacco markings and other prescribed information to

    • (a) a duty free shop for sale or offer for sale in accordance with the Customs Act;

    • (b) an accredited representative; or

    • (c) a customs bonded warehouse.

  • Marginal note:Exception for prescribed tobacco product

    (3) Subsections (1) and (2) do not apply to a tobacco product of a brand if the brand is not commonly sold in Canada and is prescribed.

  • Marginal note:Exception for prescribed cigarettes

    (4) Subsection (1) does not apply to cigarettes of a particular type or formulation, manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada, if

    • (a) cigarettes of the particular type or formulation exported under that brand are prescribed cigarettes; and

    • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

  • Marginal note:Distinguishing different cigarettes

    (5) For the purpose of subsection (4), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

Marginal note:Non-compliant imports

 If an imported tobacco product or imported raw leaf tobacco intended for the duty-paid market is not stamped when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Removal of raw leaf tobacco or waste tobacco
  •  (1) No person other than a tobacco licensee shall remove raw leaf tobacco or tobacco that is waste from the premises of the licensee.

  • Marginal note:Removal requirements

    (2) If raw leaf tobacco or tobacco that is waste is removed from the premises of a tobacco licensee, the licensee shall deal with the tobacco in the manner authorized by the Minister.

Marginal note:Re-working or destruction of tobacco
  •  (1) A tobacco licensee may re-work or destroy a tobacco product in the manner authorized by the Minister.

  • Marginal note:Importation for re-working or destruction

    (2) The Minister may authorize a tobacco licensee to import any tobacco product manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Duty on Tobacco

Marginal note:Imposition
  •  (1) Duty is imposed on tobacco products manufactured in Canada or imported and on imported raw leaf tobacco at the rates set out in Schedule 1 and is payable

    • (a) in the case of tobacco products manufactured in Canada, by the tobacco licensee who manufactured the tobacco products, at the time they are packaged; and

    • (b) in the case of imported tobacco products or raw leaf tobacco, by the importer, owner or other person who is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or who would be liable to pay that duty on the tobacco or products if they were subject to that duty.

  • Marginal note:Imported partially manufactured tobacco

    (2) The following rules apply to partially manufactured tobacco that is imported by a tobacco licensee for further manufacture:

    • (a) for the purposes of this Act, the tobacco is deemed to be manufactured in Canada by the licensee; and

    • (b) paragraph (1)(a) applies to the tobacco and paragraph (1)(b) and section 44 do not apply.

 
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