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Excise Act, 2001 (S.C. 2002, c. 22)

Assented to 2002-06-13

Marginal note:Storage

 A ferment-on-premises registrant shall not store packaged wine at their ferment-on-premises facility.

Marginal note:Restriction — licensed user

 A licensed user shall not use or dispose of non-duty-paid packaged alcohol other than to

  • (a) use it in an approved formulation;

  • (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

  • (c) use it to produce vinegar;

  • (d) return it under prescribed conditions to the excise warehouse licensee who supplied it;

  • (e) export it, if the alcohol was imported by the licensed user;

  • (f) use it for analysis in a manner approved by the Minister; or

  • (g) destroy it in a manner approved by the Minister.

Marginal note:Restriction — registered user

 A registered user shall not use or dispose of non-duty-paid packaged spirits other than to

  • (a) use them in accordance with their registration;

  • (b) use them for analysis in a manner approved by the Minister;

  • (c) return them under prescribed conditions to the excise warehouse licensee who supplied them; or

  • (d) destroy them in a manner approved by the Minister.

Marginal note:Unauthorized removal — spirits
  •  (1) No person shall remove spirits from a marked special container of spirits other than

    • (a) a registered user, in the case of a container that is marked for delivery to and use by a registered user; and

    • (b) a purchaser of the spirits at a bottle-your-own premises, in the case of a container that is marked for delivery to and use at a bottle-your-own premises.

  • Marginal note:Removal of spirits from returned container

    (2) If the operator of a bottle-your-own premises returns a marked special container of spirits to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the spirits from the container for the purpose of destroying the spirits in a manner approved by the Minister.

Marginal note:Unauthorized removal — wine
  •  (1) No person shall remove wine from a marked special container of wine other than a purchaser of the wine at a bottle-your-own premises.

  • Marginal note:Removal of wine from returned container

    (2) If the operator of a bottle-your-own premises returns a marked special container of wine to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the wine from the container for the purpose of destroying the wine in a manner approved by the Minister.

Denatured Alcohol and Specially Denatured Alcohol

Marginal note:Prohibition — denaturing of spirits

 No person, other than a spirits licensee, shall denature spirits.

Marginal note:Prohibition — sale as beverage
  •  (1) No person shall sell or provide denatured alcohol or specially denatured alcohol for use in or as a beverage.

  • Marginal note:Prohibition — use as beverage

    (2) No person shall use denatured alcohol or specially denatured alcohol in or as a beverage.

Marginal note:Prohibition — use of SDA

 No person shall, except in accordance with a specially denatured alcohol registration issued to the person, use specially denatured alcohol.

Marginal note:Prohibition — possession of SDA
  •  (1) No person shall possess specially denatured alcohol.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to

    • (a) a spirits licensee or an SDA registrant who possesses specially denatured alcohol produced by a spirits licensee;

    • (b) a spirits licensee, an SDA registrant or a sufferance warehouse licensee who possesses specially denatured alcohol imported by a spirits licensee;

    • (c) an SDA registrant who possesses specially denatured alcohol that they imported;

    • (d) a sufferance warehouse licensee who possesses specially denatured alcohol imported by an SDA registrant; or

    • (e) an alcohol registrant who possesses specially denatured alcohol only for the purposes of its storage and transportation, if the alcohol was produced by a spirits licensee or imported by a spirits licensee or an SDA registrant.

Marginal note:Prohibition — supply of SDA

 No person shall give possession of specially denatured alcohol to a person who is not a spirits licensee, an SDA registrant or an alcohol registrant.

Marginal note:Prohibition — sale of SDA
  •  (1) No person shall sell specially denatured alcohol.

  • Marginal note:Exceptions

    (2) Subsection (1) does not apply where

    • (a) a spirits licensee sells specially denatured alcohol to another spirits licensee or to an SDA registrant; or

    • (b) an SDA registrant returns specially denatured alcohol in accordance with paragraph 103(a) or exports it in accordance with paragraph 103(b).

Marginal note:Prohibition — importing of SDA

 No person shall import specially denatured alcohol other than a spirits licensee or an SDA registrant.

Marginal note:Spirits mistakenly imported as DA or SDA
  •  (1) If a person, other than a spirits licensee or licensed user, who has imported a product that was reported under the Customs Act as being denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

    • (a) export it for return to the person from whom it was acquired; or

    • (b) dispose of or destroy it in the manner specified by the Minister.

  • Marginal note:Spirits mistakenly possessed as DA or SDA

    (2) If a person, other than a spirits licensee, licensed user or alcohol registrant, who possesses a product that the person believed was denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

    • (a) return it to the spirits licensee who produced or supplied the product; or

    • (b) dispose of or destroy it in the manner specified by the Minister.

  • Marginal note:If product used

    (3) If the person is unable to comply with subsection (1) or (2) in respect of an amount of the product because they had already used it in the production of another product before they learned that the product was not denatured alcohol or specially denatured alcohol, the person shall

    • (a) dispose of or destroy the other product in the manner specified by the Minister; and

    • (b) pay any penalty imposed under section 254 for which they are liable under section 244 in respect of the amount.

  • Marginal note:Exception

    (4) Subsection (3) does not apply if

    • (a) the other product is not, in the opinion of the Minister, spirits;

    • (b) the Minister deems the other product to have been produced using denatured alcohol or specially denatured alcohol, as the case may be; and

    • (c) the person complies with any conditions imposed by the Minister.

Marginal note:Prohibition — exporting of SDA

 No person shall export specially denatured alcohol other than the SDA registrant who imported it or a spirits licensee.

Marginal note:Restriction on disposal

 An SDA registrant shall not dispose of specially denatured alcohol other than to

  • (a) return it to the spirits licensee who supplied it;

  • (b) export it, if it was imported by the SDA registrant; or

  • (c) destroy it in a manner approved by the Minister.

Responsibility for Bulk Spirits

Marginal note:Responsibility

 Subject to sections 105 to 107, 111 and 112, the person who is responsible for bulk spirits at any time is

  • (a) the spirits licensee or licensed user who owns the spirits at that time;

  • (b) if the spirits are not owned at that time by a spirits licensee or licensed user, the spirits licensee or licensed user who last owned them; or

  • (c) if the spirits were never owned by a spirits licensee or licensed user, the spirits licensee who imported or produced them or the licensed user who imported them.

Marginal note:Return of spirits purchased from unlicensed person
  •  (1) This section applies if a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the spirits,

    • (a) the purchaser returns the spirits to the spirits licensee who was responsible for them immediately before they were purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the spirits licensee who supplied them (in this section referred to as the “supplier”); and

    • (b) the ownership of the spirits reverts to the unlicensed person.

  • Marginal note:Determination of person responsible for returned spirits

    (2) At the later of the time at which the previously responsible licensee or supplier receives the spirits and the time at which the ownership of the spirits reverts to the unlicensed person,

    • (a) the previously responsible licensee becomes again responsible for the spirits; and

    • (b) the purchaser of the spirits ceases to be responsible for them.

Marginal note:Exception — provincial ownership

 If, at any time, the government of a province or a liquor authority that is a spirits licensee or a licensed user owns bulk spirits for a purpose not related to its licence, section 104 applies as though that ownership by the government or the liquor authority did not exist at that time.

 

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