Excise Act, 2001 (S.C. 2002, c. 22)

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Act current to 2018-07-05 and last amended on 2018-06-21. Previous Versions

Imposition and Payment of Duty on Cannabis

Marginal note:Imposition — flat-rate duty
  •  (1) Duty is imposed on cannabis products produced in Canada at the time they are packaged in the amount determined under section 1 of Schedule 7.

  • Marginal note:Imposition — ad valorem duty

    (2) Duty is imposed on packaged cannabis products produced in Canada at the time of their delivery to a purchaser in the amount determined under section 2 of Schedule 7.

  • Marginal note:Duty payable

    (3) The greater of the duty imposed under subsection (1) and the duty imposed under subsection (2) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the lesser of those duties.

  • Marginal note:Equal duties

    (4) If the amount of duty imposed under subsection (1) is equal to the amount of duty imposed under subsection (2), the duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser and the cannabis products are relieved of the duty imposed under subsection (2).

  • 2018, c. 12, s. 73.
Marginal note:Imposition — additional cannabis duty
  •  (1) In addition to the duty imposed under section 158.19, a duty in respect of a specified province is imposed on cannabis products produced in Canada in prescribed circumstances in the amount determined in a prescribed manner.

  • Marginal note:Duty payable

    (2) The duty imposed under subsection (1) is payable by the cannabis licensee that packaged the cannabis products at the time of their delivery to a purchaser.

  • 2018, c. 12, s. 73.
Marginal note:Duty on imported cannabis
  •  (1) Duty is imposed on imported cannabis products in the amount that is equal to the greater of

    • (a) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

    • (b) the amount determined in respect of the cannabis products under section 3 of Schedule 7.

  • Marginal note:Duty payable

    (2) The duty imposed under subsection (1) is payable by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the cannabis products if they were subject to that duty.

  • 2018, c. 12, s. 73.
Marginal note:Additional cannabis duty on imported cannabis
  •  (1) In addition to the duty imposed under section 158.21, a duty in respect of a specified province is imposed on imported cannabis products in prescribed circumstances in the amount determined in a prescribed manner.

  • Marginal note:Duty payable

    (2) The duty imposed under subsection (1) is payable by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the cannabis products if they were subject to that duty.

  • 2018, c. 12, s. 73.
Marginal note:Application of Customs Act

 The duties imposed under sections 158.21 and 158.22 on imported cannabis products 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 duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

  • 2018, c. 12, s. 73.
Marginal note:Value for duty

 For the purposes of section 3 of Schedule 7 and of any regulations made for the purposes of section 158.22 in respect of imported cannabis products,

  • (a) the value of a cannabis product is equal to the value of the cannabis product, as it would be determined under the Customs Act for the purpose of calculating duties imposed under the Customs Tariff on the cannabis product at a percentage rate, whether the cannabis product is in fact subject to duty under the Customs Tariff; or

  • (b) despite paragraph (a), the value of a cannabis product imported in prescribed circumstances shall be determined in prescribed manner.

  • 2018, c. 12, s. 73.
Marginal note:Duty on cannabis taken for use
  •  (1) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, the following rules apply:

    • (a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

    • (b) duty is imposed on the cannabis products in the amount that is equal to the greater of

      • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

      • (ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

  • Marginal note:Specified province — duty on cannabis taken for use

    (2) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

  • Marginal note:Duty payable

    (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

  • 2018, c. 12, s. 73.
Marginal note:Duty on unaccounted cannabis
  •  (1) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), the following rules apply:

    • (a) if the cannabis products are packaged, they are relieved of the duty imposed under subsection 158.19(1); and

    • (b) duty is imposed on the cannabis products in the amount that is equal to the greater of

      • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

      • (ii) the amount determined in respect of the cannabis products under section 4 of Schedule 7.

  • Marginal note:Specified province — duty on unaccounted cannabis

    (2) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), a duty in respect of a specified province is imposed on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. This duty is in addition to the duty imposed under subsection (1).

  • Marginal note:Duty payable

    (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

  • Marginal note:Exception

    (4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.1.

  • 2018, c. 12, s. 73.
Marginal note:Definition of commencement day
  •  (1) For the purposes of this section, commencement day has the same meaning as in section 152 of the Cannabis Act.

  • Marginal note:Duty on cannabis — production before commencement day

    (2) Duty is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in the amount that is equal to the greater of

    • (a) the amount determined in respect of the cannabis product under section 1 of Schedule 7, and

    • (b) the amount determined in respect of the cannabis product under section 2 of Schedule 7.

  • Marginal note:Additional cannabis duty — production before commencement day

    (3) In addition to the duty imposed under subsection (2), a duty in respect of a specified province is imposed on cannabis products that are produced in Canada and delivered to a purchaser before commencement day for sale or distribution on or after that day in prescribed circumstances in the amount determined in a prescribed manner.

  • Marginal note:Duty payable

    (4) The duty imposed under subsection (2) or (3) is payable on commencement day by the cannabis licensee that packaged the cannabis product.

  • Marginal note:Exception

    (5) Subsection (2) does not apply to a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered to a prescribed person in prescribed circumstances or for a prescribed purpose.

  • 2018, c. 12, s. 73.
 
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