Excise Act, 2001 (S.C. 2002, c. 22)

Act current to 2014-10-15 and last amended on 2014-06-19. Previous Versions

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.