Excise Act (R.S.C., 1985, c. E-14)

Act current to 2017-06-19 and last amended on 2010-12-15. Previous Versions

Marginal note:Unlawful sale or possession of manufactured tobacco or cigars
  •  (1) Subject to subsections (2) and (3), every person who sells or offers for sale or has in the person’s possession any manufactured tobacco or cigars, whether manufactured in or imported into Canada, not put up in packages and stamped with tobacco stamps or cigar stamps in accordance with this Act and the ministerial regulations,

    • (a) is guilty of an indictable offence and liable to

      • (i) a fine of not less than the amount determined under subsection (1.1) and not more than the amount determined under subsection (1.2), or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding 5 years; or

    • (b) is guilty of an offence punishable on summary conviction and liable to

      • (i) a fine of not less than the amount determined under subsection (1.1) and not more than the lesser of $500,000 and the amount determined under subsection (1.2), or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years.

  • Marginal note:Minimum amount

    (1.1) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of

    • (a) the total of

      • (i) $0.16 multiplied by the number of cigarettes, if any, to which the offence relates,

      • (ii) $0.11 multiplied by the number of tobacco sticks, if any, to which the offence relates,

      • (iii) $0.11 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and

      • (iv) $0.16 multiplied by the number of cigars, if any, to which the offence relates, and

    • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

  • Marginal note:Maximum amount

    (1.2) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of

    • (a) the total of

      • (i) $0.24 multiplied by the number of cigarettes, if any, to which the offence relates,

      • (ii) $0.16 multiplied by the number of tobacco sticks, if any, to which the offence relates,

      • (iii) $0.16 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and

      • (iv) $0.50 multiplied by the number of cigars, if any, to which the offence relates, and

    • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

  • Marginal note:Where possession not an offence

    (2) Subsection (1) does not apply to the possession of manufactured tobacco or cigars

    • (a) by a licensed tobacco manufacturer or licensed cigar manufacturer, in the manufactory of that manufacturer;

    • (b) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c), in that bonding warehouse;

    • (c) while the manufactured tobacco or cigars are in transit in accordance with ministerial regulations after having been removed in bond under ministerial regulations;

    • (d) in the case of cigars or imported manufactured tobacco, by a person licensed under the Customs Tariff to operate a bonded warehouse or under the Customs Act to operate a sufferance warehouse or duty free shop, in that warehouse or duty free shop;

    • (e) by a person who is an accredited representative for the personal or official use of that person;

    • (f) in the case of cigars or imported manufactured tobacco, as ships’ stores by a person if the acquisition and possession of the cigars or manufactured tobacco by that person are in accordance with the regulations made under the Customs Act, the Customs Tariff and the Excise Tax Act; or

    • (g) in such quantities as may be prescribed by ministerial regulations, where

      • (i) the manufactured tobacco or cigars were imported by an individual for consumption by the individual or for consumption by another person at the individual’s expense,

      • (ii) the manufactured tobacco or cigars were imported in quantities not in excess of such quantities as are prescribed by ministerial regulations made for the purposes of subsection 201(3), and

      • (iii) all duties, within the meaning assigned by subsection 2(1) of the Customs Act, payable on the manufactured tobacco or cigars have been paid.

  • Marginal note:Where sale or offer to sell not an offence

    (3) Subsection (1) does not apply to the sale or offer for sale of manufactured tobacco or cigars

    • (a) in the case of manufactured tobacco, by a licensed tobacco manufacturer for export from Canada in accordance with this Act and the ministerial regulations;

    • (a.1) in the case of cigars, by a licensed cigar manufacturer

      • (i) for export from Canada in accordance with this Act and the ministerial regulations, or

      • (ii) as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act;

    • (b) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c);

    • (c) by a person licensed under the Customs Tariff to operate a bonded warehouse, where

      • (i) the cigars were manufactured in Canada and are sold or offered for sale as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, or

      • (ii) the manufactured tobacco or cigars were imported and are, in accordance with this Act, the Customs Act and the Customs Tariff, sold or offered for sale to an accredited representative, to a duty free shop licensed under the Customs Act, as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, to an operator of a bonded warehouse licensed under the Customs Tariff or for export; or

    • (d) by a person licensed under the Customs Act to operate a duty free shop, if

      • (i) the manufactured tobacco was imported and is sold or offered for sale in accordance with that Act to a person about to leave Canada, or

      • (ii) the cigars are sold or offered for sale in accordance with that Act to a person about to leave Canada.

  • Marginal note:Imprisonment in default of payment

    (4) Where a fine is imposed under subsection (1), a term of imprisonment may be imposed in default of payment of the fine, but no such term shall exceed

    • (a) where the fine is imposed under paragraph (1)(a), five years in addition to any other term of imprisonment imposed on the person under that paragraph; and

    • (b) where the fine is imposed under paragraph (1)(b), two years in addition to any other term of imprisonment imposed on the person under that paragraph.

  • Marginal note:Offence to sell or distribute except in original package

    (5) Every person who

    • (a) sells or offers for sale any cigars or manufactured tobacco, other than cigarettes, otherwise than in or from the original package stamped with a cigar stamp or tobacco stamp in accordance with this Act and the ministerial regulations,

    • (b) sells or offers for sale any cigarettes otherwise than in the original package stamped with a tobacco stamp in accordance with this Act and the ministerial regulations, or

    • (c) distributes free of charge for advertising purposes any cigars or manufactured tobacco otherwise than in or from the original package stamped with a cigar stamp or tobacco stamp in accordance with this Act and the ministerial regulations,

    whether or not the proper duty has been paid under this Act or under the Customs Act and the Customs Tariff on the manufactured tobacco or cigars, is guilty of an offence punishable on summary conviction and liable to a fine not exceeding ten thousand dollars and, in default of payment of the fine, to imprisonment for a term not exceeding twelve months.

  • R.S., 1985, c. E-14, s. 240;
  • 1989, c. 22, s. 12;
  • 1993, c. 25, s. 52;
  • 1994, c. 29, s. 15;
  • 1995, c. 41, s. 112;
  • 1999, c. 17, s. 144(E);
  • 2001, c. 16, s. 15;
  • 2002, c. 22, s. 425(F).
 
Date modified: