• 4.1 (1) Subject to subsections (2) to (4), the amount of security for the purpose of subsection 25.1(3) of the Act is the greater of

  • (a) the amount equal to one half of the amount of duty that would be imposed under section 42 of the Act on tobacco products if they were stamped with

    • (i) the unaffixed excise stamps in the applicant’s possession at the time of application, and

    • (ii) the excise stamps to be issued in respect of the application; and

  • (b) $5,000.

• (2) Subject to subsection (3), if the amount referred to in paragraph (1)(a) is greater than $2 million, the amount of security for the purpose of subsection 25.1(3) of the Act is $2 million.

• (3) If a person has provided security under paragraph 23(3)(b) of the Act in an amount that is equal to or greater than the amount of security determined in accordance with subsection (1) or (2), as the case may be, the amount of security for the purpose of subsection 25.1(3) of the Act is nil.

• (4) If a person has provided security under paragraph 23(3)(b) of the Act in an amount that is less than the amount of security determined in accordance with subsection (1) or (2), as the case may be, the amount of security for the purpose of subsection 25.1(3) of the Act is the difference between the amount of security determined in accordance with subsection (1) or (2), as the case may be, and the amount of security provided by the person under paragraph 23(3)(b) of the Act.

4.2 For the purposes of the definition “stamped” in section 2 of the Act and subsection 25.3(1) of the Act, the prescribed manner of affixing an excise stamp to a package is by affixing the stamp

• (a) in a conspicuous place on the package;

• (b) in a manner that seals the package;

• (c) in a manner that the stamp remains affixed to the package after the package is opened;

• (d) in a manner that does not interfere with the stamp’s security features; and

• (e) in a manner that does not obstruct any information that is required by or under an Act of Parliament to appear on the package.

• 5. (1) For the purposes of paragraphs 32(2)(j) and 35(2)(c) of the Act, the prescribed limit is five units of tobacco products.

• (2) For the purposes of subsection (1), a unit of tobacco products consists of

  • (a) 200 cigarettes;

  • (b) 50 cigars;

  • (c) 200 tobacco sticks; or

  • (d) 200 g of manufactured tobacco.

• 6. (1) For the purposes of subsection 38(1) of the Act, the required tobacco markings are

  • (a) for containers of manufactured tobacco and cigars manufactured in Canada, the marking set out in Schedule 7; and

  • (b) for containers of manufactured tobacco and cigars manufactured outside Canada, the marking set out in Schedule 8.

• (2) Despite paragraph (1)(a), the required tobacco marking for containers of cigars manufactured in Canada and intended for delivery to a duty free shop or as ships’ stores is the marking set out in Schedule 8.

• (3) The tobacco markings must be printed on or affixed to the container in a conspicuous manner and in accordance with the specifications set out in the appropriate Schedule.