Excise Act, 2001 (S.C. 2002, c. 22)

Act current to 2017-11-20 and last amended on 2017-06-22. Previous Versions

Marginal note:Removal of imported tobacco
  •  (1) No person shall remove imported manufactured tobacco or cigars from an excise warehouse.

  • Marginal note:Exception

    (2) Subject to the regulations, imported manufactured tobacco or cigars may be removed from an excise warehouse

    • (a) for delivery to another excise warehouse;

    • (b) for delivery to an accredited representative for their personal or official use;

    • (c) for delivery as ships’ stores, in accordance with the Ships’ Stores Regulations;

    • (d) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act; or

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

  • 2002, c. 22, s. 51;
  • 2007, c. 18, s. 86.
Marginal note:Restriction — special excise warehouse

 No special excise warehouse licensee shall store manufactured tobacco or cigars that are manufactured in Canada in their special excise warehouse for any purpose other than the sale and distribution of the tobacco or cigars to an accredited representative for the personal or official use of the representative.

  • 2002, c. 22, s. 52;
  • 2007, c. 18, s. 87.

Special Duties on Tobacco Products

Marginal note:Special duty on imported manufactured tobacco delivered to duty free shop
  •  (1) A special duty is imposed, at the rates set out in section 1 of Schedule 3, on imported manufactured tobacco that is delivered to a duty free shop and that is not stamped.

  • Marginal note:When and by whom duty is payable

    (2) The special duty is payable at the time of delivery and is payable by the duty free shop licensee.

  • 2002, c. 22, s. 53;
  • 2008, c. 28, s. 56;
  • 2014, c. 20, s. 65(F).

Meaning of traveller’s tobacco

  •  (1) In this section, traveller’s tobacco means manufactured tobacco that is imported by a person at any time and

    • (a) is classified under tariff item No. 9804.10.00, 9804.20.00, 9805.00.00 or 9807.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; or

    • (b) would be classified under tariff item No. 9804.10.00 or 9804.20.00 in that List but for the fact that the total value for duty as determined under section 46 of the Customs Act of all goods imported by the person at that time exceeds the maximum value specified in that tariff item.

  • Marginal note:Special duty on traveller’s tobacco

    (2) A special duty is imposed on traveller’s tobacco at the time it is imported at the rates set out in section 2 of Schedule 3.

  • Marginal note:When and how duty is payable

    (3) The special duty 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 special duty 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.

  • Marginal note:Exception

    (4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if duty under section 42 was previously imposed on the tobacco and the tobacco is stamped.

  • 2002, c. 22, s. 54;
  • 2008, c. 28, s. 57;
  • 2014, c. 20, s. 66(F).

Definition of tobacco product

 In sections 56 to 58, tobacco product means manufactured tobacco other than partially manufactured tobacco.

Marginal note:Imposition
  •  (1) A special duty is imposed on a tobacco product that is manufactured in Canada and exported

    • (a) if the export is in accordance with paragraph 50(4)(a) by the tobacco licensee who manufactured it, at the rates set out in section 3 of Schedule 3; or

    • (b) in any other case, at the rates set out in section 4 of Schedule 3.

  • Marginal note:When and by whom duty is payable

    (2) Subject to sections 57 and 58, the special duty is payable, at the time the tobacco product is exported, by

    • (a) if paragraph (1)(a) applies, the tobacco licensee who manufactured it; or

    • (b) if paragraph (1)(b) applies, the person who exported it.

  • 2002, c. 22, s. 56;
  • 2014, c. 20, s. 67(F).
Marginal note:Duty relieved — deliveries to a foreign duty free shop and as foreign ships’ stores

 The special duty imposed under section 56 is relieved on a tobacco product that is exported by the tobacco licensee who manufactured it for delivery to a foreign duty free shop or as foreign ships’ stores.

Marginal note:Duty relieved — prescribed tobacco product
  •  (1) The special duty imposed under section 56 is relieved on a tobacco product of a particular brand if

    • (a) the tobacco product of that brand is prescribed;

    • (b) during the three-year period before the year in which the tobacco product of that brand is exported, the tobacco product of that brand was not sold in Canada, other than in a duty free shop, except in quantities not significantly greater than the minimum quantities sufficient for the purposes of registering the trade mark for that brand; and

    • (c) during any year before the three-year period referred to in paragraph (b), sales in Canada of the product of that brand never exceeded

      • (i) 0.5% of total sales in Canada of similar products, or

      • (ii) if another percentage that is less than 0.5% is prescribed for the purposes of this subsection, that percentage of total sales in Canada of similar products.

  • Marginal note:Duty relieved — prescribed cigarettes

    (2) The special duty imposed under section 56 is relieved on cigarettes of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada if

    • (a) cigarettes of the particular type or formulation exported under that brand are prescribed; and

    • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

  • Marginal note:Distinguishing different cigarettes

    (3) For the purpose of subsection (2), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

PART 3.1Cigarette Inventory Tax

Marginal note:Definitions

 The following definitions apply in this Part.

adjustment day

adjustment day means

  • (a) March 23, 2017; or

  • (b) in the case of an inflationary adjusted year, December 1 of that year. (date d’ajustement)

inflationary adjusted year

inflationary adjusted year has the same meaning as in subsection 43.1(1). (année inflationniste)

loose tobacco

loose tobacco[Repealed, 2014, c. 20, s. 69]

separate retail establishment

separate retail establishment of a person means a shop or store of the person

  • (a) that is geographically separate from other places of business of the person;

  • (b) at which, in the ordinary course of the person’s business, the person regularly sells, otherwise than through vending machines, tobacco products to consumers, within the meaning of section 123 of the Excise Tax Act, attending at the shop or store; and

  • (c) in respect of which separate records are maintained. (établissement de détail distinct)

taxed cigarettes

taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 before March 23, 2017 at the rate set out in paragraph 1(a) of Schedule 1, as it read on March 22, 2017, and that, at the beginning of March 23, 2017,

  • (a) were owned by that person for sale in the ordinary course of a business of the person;

  • (b) were not held in a vending machine; and

  • (c) were not relieved from that duty under this Act. (cigarettes imposées)

taxed tobacco

taxed tobacco[Repealed, 2014, c. 20, s. 69]

unit

unit[Repealed, 2014, c. 20, s. 69]

  • 2006, c. 4, s. 34;
  • 2007, c. 35, s. 197;
  • 2014, c. 20, s. 69;
  • 2017, c. 20, s. 45.
 
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