Excise Act, 2001 (S.C. 2002, c. 22)

Act current to 2017-07-03 and last amended on 2017-06-22. Previous Versions

Marginal note:Fortifying wine
  •  (1) A licensed user who is also a wine licensee may use bulk spirits to fortify wine to an alcoholic strength not in excess of 22.9% absolute ethyl alcohol by volume.

  • Marginal note:Duty relieved on spirits

    (2) The duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were used to fortify the wine is relieved.

Marginal note:Blending wine with spirits

 A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.

  • 2002, c. 22, s. 131;
  • 2007, c. 18, s. 99.
Marginal note:Producing spirits from wine

 A licensed user who is also a spirits licensee may use bulk wine to produce spirits.

  • 2007, c. 18, s. 99.
Marginal note:Deemed production of spirits — blending wine
  •  (1) If wine is blended with bulk spirits and the resulting product is spirits,

    • (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved; and

    • (b) the resulting spirits are deemed to be produced at the time of the blending.

  • Marginal note:Deemed production of spirits — other blending

    (2) If a material or substance, other than spirits or wine, containing absolute ethyl alcohol is blended with bulk spirits or wine and the resulting product is spirits,

    • (a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the material or substance is relieved; and

    • (b) the resulting spirits are deemed to be produced at the time of the blending.

  • 2007, c. 18, s. 99.
Marginal note:Duty relieved — DA and SDA

 If a spirits licensee denatures bulk spirits into denatured alcohol or specially denatured alcohol, the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved.

Marginal note:Imposition of special duty
  •  (1) In addition to the duty levied under section 21.1 or 21.2 of the Customs Tariff, a special duty is imposed on imported spirits delivered to or imported by a licensed user at the rate set out in Schedule 5.

  • Marginal note:Bulk spirits

    (2) If a spirits licensee imports bulk spirits that are delivered to a licensed user, the special duty is payable at the time the spirits are delivered to the licensed user and is payable

    • (a) by the spirits licensee who is responsible for the spirits at that time;

    • (b) if the licensed user is responsible for the spirits at that time and there was a spirits licensee who was responsible immediately before that time, by that spirits licensee; or

    • (c) if the licensed user is responsible for the spirits at that time and there was not a spirits licensee who was responsible immediately before that time, by the spirits licensee who delivered the spirits.

  • Marginal note:Packaged spirits

    (3) If imported packaged spirits or imported spirits that have been packaged in Canada are removed from an excise warehouse for delivery to a licensed user, the special duty is payable by the excise warehouse licensee at the time the spirits are removed from the excise warehouse.

  • Marginal note:Spirits imported by licensed user

    (4) If bulk or packaged spirits are imported by a licensed user, the special duty

    • (a) is payable by the licensed user at the time the spirits are imported; and

    • (b) 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 duty were a duty levied on the spirits under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Imposition — bulk wine taken for use
  •  (1) Duty is imposed on bulk wine that is taken for use at the rates set out in Schedule 6.

  • Marginal note:Payable by responsible person

    (2) Subject to sections 144 to 146, the duty is payable at the time the wine is taken for use and is payable by the person who is responsible for the wine at that time.

  • Marginal note:Exceptions

    (3) Subsection (1) does not apply to

    • (a) wine that is produced in Canada and composed wholly of agricultural or plant product grown in Canada; and

    • (b) wine that is produced by an individual for their personal use and that is consumed in the course of that use.

  • 2002, c. 22, s. 134;
  • 2007, c. 2, s. 56.
Marginal note:Imposition — wine packaged in Canada
  •  (1) Duty is imposed on wine that is packaged in Canada at the rates set out in Schedule 6.

  • Marginal note:Wine produced for personal use and by small producers

    (2) Subsection (1) does not apply to wine that is

    • (a) produced in Canada and composed wholly of agricultural or plant product grown in Canada;

    • (a.1) produced and packaged by an individual for their personal use; or

    • (b) produced by a wine licensee and packaged by or on behalf of the licensee during a fiscal month in a particular fiscal year of the licensee if

      • (i) the total sales by the licensee of products that are subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the fiscal year ending immediately before the particular fiscal year did not exceed $50,000, and

      • (ii) the total sales by the licensee of those products during the particular fiscal year before the fiscal month did not exceed $50,000.

  • Marginal note:Time of imposition

    (3) The duty is imposed at the time the wine is packaged. It is also payable at that time unless the wine is entered into an excise warehouse immediately after packaging.

  • Marginal note:Payable by responsible person

    (4) The duty is payable by the person who is responsible for the wine immediately before it is packaged.

  • Marginal note:Wine licensee ceases to be liable for duty

    (5) If an excise warehouse licensee becomes liable under section 140 for duty on the wine, the person required under subsection (4) to pay the duty ceases to be liable to pay it.

  • 2002, c. 22, s. 135;
  • 2007, c. 2, s. 57, c. 18, s. 100.
Marginal note:Definitions
  •  (1) The following definitions apply in this section.

    inflationary adjusted year

    inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

    reference year

    reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Schedule 6 applicable in respect of a litre of wine is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A
      is the rate of duty applicable to the litre on March 31 of the inflationary adjusted year, and
      B
      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C
      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and
      D
      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and
    • (b) the rate of duty referred to in the description of A in paragraph (a).

  • Marginal note:Rounding

    (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph (a) by 12; and

    • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Application of adjusted rate

    (5) If duties on wine are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

  • 2017, c. 20, s. 50.
 
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