Marginal note:Spirits imported by licensed user

107. A licensed user who imports bulk spirits is responsible for them.

Marginal note:Blended spirits — joint and several or solidary responsibility

• 108. (1) If bulk spirits are blended with other bulk spirits, or if bulk spirits are blended with bulk wine and the resulting product is spirits, every person who is a person responsible for any of the spirits or who is a licensed user responsible for any of the bulk wine is jointly and severally or solidarily responsible for the resulting blended spirits.

• Marginal note:Responsibility for wine ceases

  (2) The wine licensee or licensed user who was responsible for the bulk wine before it was blended with bulk spirits as described in subsection (1) ceases to be responsible for the wine as of the time of blending.

Marginal note:Person not responsible

109. A person who is responsible for bulk spirits ceases to be responsible for them if they are

• (a) taken for use and the duty on them is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) denatured into denatured alcohol or specially denatured alcohol;

• (e) exported in accordance with this Act; or

• (f) lost in prescribed circumstances, if the person fulfills any prescribed conditions.

Marginal note:Notification of change of ownership

110. If a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user, the purchaser shall, except in respect of bulk spirits that are to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the spirits licensee who is responsible for the spirits immediately before they are sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

111. If an unmarked special container of spirits is removed by a spirits licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Marginal note:Removal of spirits

112. If spirits are removed by a spirits licensee from their excise warehouse in accordance with section 158, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Responsibility for Bulk Wine

Marginal note:Responsibility

113. Subject to sections 114 to 116, 120 and 121, the person who is responsible for bulk wine at any time is

• (a) the wine licensee or licensed user who owns the wine at that time;

• (b) if the wine is not owned at that time by a wine licensee or licensed user, the wine licensee or licensed user who last owned it; or

• (c) if the wine was never owned by a wine licensee or licensed user, the wine licensee who imported or produced it or the licensed user who imported it.

Marginal note:Return of wine purchased from unlicensed person

• 114. (1) This section applies if a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the wine,

  • (a) the purchaser returns the wine to the wine licensee who was responsible for it immediately before it was purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the wine licensee who supplied it (in this section referred to as the “supplier”); and

  • (b) the ownership of the wine reverts to the unlicensed person.

• Marginal note:Determination of person responsible for returned wine

  (2) At the later of the time at which the previously responsible licensee or supplier receives the wine and the time at which the ownership of the wine reverts to the unlicensed person,

  • (a) the previously responsible licensee becomes again responsible for the wine; and

  • (b) the purchaser of the wine ceases to be responsible for it.

Marginal note:Exception — provincial ownership

115. If, at any time, the government of a province or a liquor authority that is a wine licensee or a licensed user owns bulk wine for a purpose not related to its licence, section 113 applies as though that ownership by the government or the liquor authority did not exist at that time.

Marginal note:Wine imported by licensed user

116. A licensed user who imports bulk wine is responsible for it.

Marginal note:Blended wine — joint and several or solidary responsibility

• 117. (1) If bulk wine is blended with other bulk wine, or if bulk wine is blended with bulk spirits and the resulting product is wine, every person who is a person responsible for any of the wine or who is a licensed user responsible for any of the bulk spirits is jointly and severally or solidarily responsible for the resulting blended wine.

• Marginal note:Responsibility for spirits ceases

  (2) The spirits licensee or licensed user who was responsible for the bulk spirits before they were blended with bulk wine as described in subsection (1) ceases to be responsible for the spirits as of the time of blending.

Marginal note:Person not responsible

118. A person who is responsible for bulk wine ceases to be responsible for it if it is

• (a) taken for use and the duty on it is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) exported in accordance with this Act; or

• (e) lost, if the loss is recorded in a manner authorized by the Minister.

Marginal note:Notification of change of ownership

119. If a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user, the purchaser shall, except in respect of bulk wine that is to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the wine licensee who is responsible for the wine immediately before it is sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

120. If an unmarked special container of wine is removed by a wine licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the wine unless the wine is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Marginal note:Removal of wine

121. If wine is removed by a wine licensee from their excise warehouse in accordance with section 157, the licensee is responsible for the wine unless it is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Imposition and Payment of Duty on Alcohol

Marginal note:Imposition — domestic spirits

• 122. (1) Duty is imposed on spirits produced in Canada at the rate set out in section 1 of Schedule 4.

• Marginal note:Time of imposition

  (2) The duty is imposed at the time the spirits are produced.

Marginal note:Imposition — low alcoholic strength spirits

123. If spirits do not contain more than 7% of absolute ethyl alcohol by volume at the time that they are packaged,

• (a) the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved; and

• (b) duty is imposed on the spirits at the rate set out in section 2 of Schedule 4.

Marginal note:Duty payable when packaged

• 124. (1) Subject to sections 126 and 127, the duty imposed on spirits is payable at the time the spirits are packaged unless, immediately after packaging, they are entered into an excise warehouse.

• Marginal note:Payable by responsible person

  (2) Duty is payable by the person who is responsible for the spirits immediately before they are packaged.

• Marginal note:Spirits licensee ceases to be liable for duty

  (3) If an excise warehouse licensee becomes liable under section 140 for duty on the spirits, the person required under subsection (2) to pay the duty ceases to be liable to pay it.

Marginal note:Duty payable when removed from warehouse

125. If packaged spirits are removed from an excise warehouse for entry into the duty-paid market, duty is payable on the spirits at the time of their removal and is payable by the excise warehouse licensee of the warehouse.

Marginal note:Duty payable on bulk spirits taken for use

126. Subject to sections 144 to 146, if bulk spirits are taken for use, duty is payable at the time the spirits are taken for use by the person who is responsible for the spirits at that time.

Marginal note:Duty payable on unaccounted bulk spirits

• 127. (1) Duty is payable by the person who is responsible for bulk spirits on any portion of the spirits that cannot be accounted for by the person as being in the possession of a spirits licensee, a licensed user or an alcohol registrant.

• Marginal note:When duty payable

  (2) The duty is payable at the time the spirits cannot be accounted for.

• Marginal note:Exception

  (3) Subsection (1) does not apply in circumstances where the person is convicted of an offence under section 218 or is liable to pay a penalty under section 241.