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:Duty payable on removal from warehouse
  •  (1) Subject to subsection (2), if packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.

  • Marginal note:Removals for consignment sales

    (2) If a small wine licensee removes packaged wine that the licensee produced or packaged from the excise warehouse of the licensee for delivery and sale on a consignment basis at a retail store operated on behalf of two or more small wine licensees and that is not located on the premises of a wine licensee, the wine is deemed to be removed from the warehouse for entry into the duty-paid market at the time the wine is sold.

  • Meaning of small wine licensee

    (3) In this section, a wine licensee is a small wine licensee during a fiscal year of the licensee if, in the previous fiscal year, the total amount of wine sold by the licensee did not exceed 60,000 litres.

  • 2002, c. 22, s. 136;
  • 2007, c. 18, s. 101.
Marginal note:Duty payable on packaged wine taken for use

 Subject to sections 144 to 146, if non-duty-paid packaged wine that is in the possession of an excise warehouse licensee or a licensed user is taken for use, duty is payable on the wine at the time it is taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged wine
  •  (1) Duty is payable on non-duty-paid packaged wine that has been received by an excise warehouse licensee or a licensed user but that cannot be accounted for by the licensee or user

    • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

    • (a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection;

    • (b) as having been removed, used or destroyed in accordance with this Act; or

    • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

  • Marginal note:When duty payable

    (2) Duty is payable by the licensee or user at the time the wine cannot be accounted for.

  • 2002, c. 22, s. 138;
  • 2007, c. 18, s. 102.
Marginal note:Duty on wine in marked special container relieved
  •  (1) Duty imposed under subsection 135(1) is relieved on wine that is contained in a marked special container of wine from which the marking has been removed in accordance with section 156.

  • Marginal note:Duty on returned wine relieved

    (2) Duty imposed under subsection 135(1) or levied under subsection 21.2(2) of the Customs Tariff is relieved on wine that is returned to the bulk wine inventory of a wine licensee in accordance with section 157.

Liability of Excise Warehouse Licensees and Licensed Users

Marginal note:Non-duty-paid packaged alcohol

 If non-duty-paid packaged alcohol is entered into an excise warehouse immediately after being packaged, the excise warehouse licensee is liable for the duty on the alcohol at the time it is entered into the warehouse.

Marginal note:Imported packaged alcohol

 If, in accordance with subsection 21.2(3) of the Customs Tariff, imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee or licensed user who imported it, the excise warehouse licensee or licensed user is liable for the duty on the alcohol.

Marginal note:Transfer between warehouse licensees
  •  (1) If non-duty-paid packaged alcohol is removed from the excise warehouse of an excise warehouse licensee (in this subsection referred to as the “transferor”) to the excise warehouse of another excise warehouse licensee, at the time the alcohol is entered into the warehouse of the other licensee,

    • (a) the other licensee becomes liable for the duty on the alcohol; and

    • (b) the transferor ceases to be liable for the duty.

  • Marginal note:Transfer to licensed user

    (2) If non-duty-paid packaged alcohol is removed from an excise warehouse to the specified premises of a licensed user, at the time the alcohol is entered into those premises,

    • (a) the licensed user becomes liable for the duty on the alcohol; and

    • (b) the excise warehouse licensee ceases to be liable for the duty.

  • Marginal note:Transfer from licensed user

    (3) If non-duty-paid packaged alcohol is removed from the specified premises of a licensed user to an excise warehouse, at the time the alcohol is entered into the warehouse,

    • (a) the excise warehouse licensee becomes liable for the duty on the alcohol; and

    • (b) the licensed user ceases to be liable for the duty.

Non-dutiable Uses and Removals of Alcohol

Marginal note:Approved formulations

 The Minister may impose any conditions or restrictions that the Minister considers necessary in respect of the making, importation, packaging, use or sale of, or other dealing with, an approved formulation.

Marginal note:Non-dutiable uses — approved formulations

 Duty is relieved on bulk alcohol and non-duty-paid packaged alcohol used by a licensed user in an approved formulation.

Marginal note:Duty not payable — bulk alcohol
  •  (1) Duty is not payable on bulk alcohol

    • (a) taken for analysis by an alcohol licensee or a licensed user in a manner approved by the Minister;

    • (b) destroyed by an alcohol licensee or a licensed user in a manner approved by the Minister; or

    • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister.

  • Marginal note:Duty not payable — packaged alcohol

    (2) Duty is not payable on non-duty-paid packaged alcohol

    • (a) taken for analysis by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

    • (b) destroyed by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

    • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister; or

    • (d) in the case of wine, taken for use by an excise warehouse licensee if that licensee is also the wine licensee who produced or packaged the wine and the wine is provided free of charge to individuals for consumption as a sample at the premises where the licensee produces or packages wine.

  • Marginal note:No duty payable — alcohol taken for analysis or destroyed

    (3) Duty is not payable on bulk alcohol or non-duty-paid packaged alcohol that is taken for analysis or destroyed by the Minister.

  • 2002, c. 22, s. 145;
  • 2007, c. 18, s. 103.
Marginal note:Duty not payable — vinegar
  •  (1) Duty is not payable on alcohol that is used by a licensed user to produce vinegar if not less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used.

  • Marginal note:Deemed taken for use if deficiency

    (2) If a licensed user uses alcohol to produce vinegar and less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used, the licensed user is deemed to have taken for use, at the time the vinegar is produced, the number of litres of that alcohol that is equivalent to the number determined by the formula

    A - (2 × B)

    where

    A
    is the number of litres of absolute ethyl alcohol used, and
    B
    is the number of kilograms of acetic acid produced.
Marginal note:Duty not payable — packaged alcohol
  •  (1) Duty is not payable on non-duty-paid packaged alcohol, other than alcohol contained in a marked special container, that is removed from an excise warehouse

    • (a) for delivery

      • (i) to an accredited representative for their personal or official use,

      • (ii) to a duty free shop for sale in accordance with the Customs Act,

      • (iii) to a registered user for use in accordance with their registration, or

      • (iv) as ships’ stores in accordance with the Ships’ Stores Regulations; or

    • (b) for export by the excise warehouse licensee in accordance with this Act.

  • Marginal note:Duty not payable — special container of spirits

    (2) Duty is not payable on spirits contained in a marked special container that is removed from an excise warehouse

    • (a) for delivery to a registered user for use in accordance with their registration, if the container is marked for delivery to and use by a registered user; or

    • (b) for export by the excise warehouse licensee in accordance with this Act, if the container was imported.

  • Marginal note:Duty not payable — special container of wine

    (3) Duty is not payable on wine imported in a marked special container that is removed from an excise warehouse for export by the excise warehouse licensee in accordance with this Act.

  • Marginal note:Duty not payable — wine samples

    (4) Duty is not payable on non-duty-paid packaged wine, other than wine contained in a marked special container, that is removed from the excise warehouse of the wine licensee who produced or packaged the wine if the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine.

  • 2002, c. 22, s. 147;
  • 2007, c. 18, s. 104.
 
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