Tobacco Tax Amendments Act, 2001 (S.C. 2001, c. 16)
Full Document:
Assented to 2001-06-14
R.S., c. E-15EXCISE TAX ACT
Marginal note:1994, c. 29, s. 1(1)
16. (1) The definitions “Atlantic manufactured tobacco”, “black stock manufactured tobacco” and “licensed tobacco manufacturer” in subsection 2(1) of the Excise Tax Act are repealed.
(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
“foreign duty free shop”
« boutique hors taxes à l’étranger »
“foreign duty free shop” means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country;
“foreign ships’ stores”
« provisions de bord à l’étranger »
“foreign ships’ stores” means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft;
Marginal note:1994, c. 29, s. 1(2)
(3) Subsection 2(7) of the Act is repealed.
(4) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.
Marginal note:1993, c. 25, s. 55(1)
17. (1) Subsection 23(1) of the Act is replaced by the following:
Marginal note:Tax on various articles at schedule rates
23. (1) Subject to subsections (6) to (8.3), whenever goods mentioned in Schedules I and II are imported into Canada or manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other Act or law, an excise tax in respect of the goods at the applicable rate set out in the applicable section in whichever of those Schedules is applicable, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be.
Marginal note:1993, c. 25, s. 55(2)
(2) Subsection 23(5) of the Act is replaced by the following:
Marginal note:Tax on release by duty free shop of Schedule II tobacco products
(5) Subject to section 66.1, whenever tobacco products mentioned in Schedule II are sold by the operator of a duty free shop or are retained for the use of the operator, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those tobacco products at the applicable rate set out in the applicable section in that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the price at which the tobacco products were purchased by the operator, as the case may be, and payable by the operator at the time the tobacco products are delivered to the purchaser or so retained for use.
(3) Subsection 23(8) of the Act is amended by striking out the word “or” at the end of paragraph (b.1) and by adding the following after that paragraph:
(b.2) manufactured tobacco imported into Canada by an individual for their personal use if it is stamped in accordance with the Excise Act and duty has been imposed on it under section 200 of that Act; or
Marginal note:1993, c. 25, s. 55(3)
(4) Paragraph 23(8.2)(a) of the Act is replaced by the following:
(a) in the case of cigars, products in respect of which section 23.3 applies that are not exported for delivery to a foreign duty free shop or as foreign ships’ stores, or cut filler or cut rag or products manufactured less fully than cut filler or cut rag, the products have been exported in bond by their manufacturer or producer;
(a.1) in the case of products other than those to which paragraph (a) applies, the products have been exported by their manufacturer or producer;
(5) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.
(6) Subsection (4) applies to tobacco products exported after April 5, 2001.
Marginal note:1994, c. 29, s. 5(1)
18. (1) Sections 23.1 and 23.2 of the Act are replaced by the following:
Definition of “tobacco product”
23.1 In sections 23.11 to 23.3, “tobacco product” means manufactured tobacco other than cut filler, cut rag or products manufactured less fully than cut filler or cut rag.
Marginal note:Tax on domestic tobacco delivered to a duty free shop or as ships’ stores
23.11 (1) There shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax, at the applicable rate set out in subsection (2), in respect of tobacco products that are manufactured or produced in Canada and are
(a) delivered to a duty free shop;
(b) delivered to a bonded warehouse, licensed as such under the Customs Tariff;
(c) delivered to a person for use as ships’ stores in accordance with the regulations made under this Act and the Customs Tariff; or
(d) exported for delivery to a foreign duty free shop or as foreign ships’ stores.
Marginal note:Rate of tax
(2) The rate of tax imposed under subsection (1) is
(a) $0.0225 per cigarette, in the case of cigarettes;
(b) $0.01665 per stick, in the case of tobacco sticks; and
(c) $11.65 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.
Marginal note:When and by whom tax is payable
(3) The tax imposed under subsection (1) is payable by the manufacturer or producer of the tobacco products and is payable at the time
(a) if paragraph (1)(d) applies, they are exported; and
(b) in any other case, they are delivered.
Marginal note:Tax on imported tobacco delivered to a duty free shop
23.12 (1) If imported tobacco products are delivered to a duty free shop, there shall be imposed, levied and collected in respect of them, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax at the rate of
(a) $0.05 per cigarette, in the case of cigarettes;
(b) $0.035 per stick, in the case of tobacco sticks; and
(c) $0.03 per gram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.
Marginal note:When and by whom tax payable
(2) The tax imposed under this section is payable at the time of delivery and is payable by the operator of the duty free shop.
Marginal note:Tax on exports of tobacco products not exceeding maximum quantity
23.13 (1) If tobacco products manufactured or produced in Canada are exported in bond in accordance with subparagraph 58.1(3)(a)(i) and paragraph 58.1(3)(b) of the Excise Act by their manufacturer or producer, there shall be imposed, levied and collected in respect of the tobacco products, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax at the rate of
(a) $0.05 per cigarette, in the case of cigarettes;
(b) $0.035 per stick, in the case of tobacco sticks; and
(c) $30.00 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.
Marginal note:Tax on exports of tobacco products exceeding maximum quantity
(2) If tobacco products manufactured or produced in Canada are exported and subsection (1) does not apply to those products, there shall be imposed, levied and collected in respect of those products, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax at the rate of
(a) $0.0825 per cigarette, in the case of cigarettes;
(b) $0.06165 per stick, in the case of tobacco sticks; and
(c) $41.65 per kilogram, in the case of manufactured tobacco other than cigarettes and tobacco sticks.
Marginal note:When and by whom tax is payable
(3) The tax imposed under this section is payable at the time the tobacco products are exported and is payable by
(a) if subsection (1) applies, the manufacturer or producer of the products; and
(b) if subsection (2) applies, the exporter of the products.
Marginal note:Tax not payable on exports to foreign duty free shops or as foreign ships’ stores
(4) The tax imposed under this section is not payable in respect of tobacco products that are exported by their manufacturer or producer for delivery
(a) to a foreign duty free shop for sale in the shop; or
(b) as foreign ships’ stores.
(2) Subsection (1) is deemed to have come into force on April 6, 2001, except that section 23.11 of the Act, as enacted by subsection (1), does not apply to tobacco products that had been entered into a bonding warehouse before that day.
Marginal note:2000, c. 30, s. 3(1)
19. (1) Subsection 23.21(2) of the Act is replaced by the following:
Marginal note:Exemption for limited exports
(2) The excise tax imposed under subsection 23.2(1) is not payable by a manufacturer or producer in respect of a particular quantity of a category of tobacco product exported at a time in a calendar year if the total quantity of that category of tobacco product exported by the manufacturer or producer in the calendar year up to and including that time, plus the particular quantity, does not exceed 1 1/2% of the total quantity of that category of tobacco product manufactured or produced by the manufacturer or producer in the preceding calendar year.
(2) Section 23.21 of the Act, as amended by subsection (1), is repealed.
(3) Subsection (1) is deemed to have come into force on April 1, 2000, except that, in applying subsection 23.21(2) of the Act, as enacted by subsection (1), before January 2001, the reference in that subsection to “1 1/2%” shall be read as a reference to “1 3/4%”.
(4) Subsection (2) is deemed to have come into force on April 6, 2001.
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