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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-06-20 and last amended on 2022-06-09. Previous Versions

PART 4Alcohol (continued)

Excise Warehouses

Marginal note:Restriction — entering into warehouse

 No person shall enter non-duty-paid packaged alcohol into an excise warehouse except in accordance with this Act.

Marginal note:Import by warehouse licensee

  •  (1) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee who imported it, the licensee shall immediately enter it into the excise warehouse of the licensee.

  • Marginal note:Import by licensed user

    (2) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the licensed user who imported it, the licensed user shall immediately enter it into the specified premises of the licensed user.

Marginal note:Restriction on removal

  •  (1) No person shall remove non-duty-paid packaged alcohol from an excise warehouse.

  • Marginal note:Exception

    (2) Subject to the regulations, a person may remove from an excise warehouse

    • (a) non-duty-paid packaged alcohol, other than alcohol in a marked special container, for

      • (i) entry into the duty-paid market,

      • (ii) delivery to another excise warehouse,

      • (iii) delivery to an accredited representative for their personal or official use,

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

      • (v) delivery to a duty free shop for sale in accordance with the Customs Act to persons who are about to leave Canada,

      • (vi) delivery to a licensed user,

      • (vii) delivery to a registered user for use in accordance with their registration,

      • (viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or

      • (ix) export;

    • (a.1) non-duty-paid packaged wine, other than wine in a marked special container, if the warehouse is the excise warehouse of the wine licensee who produced or packaged the wine and the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine;

    • (b) a non-duty-paid marked special container of wine for

      • (i) delivery to another excise warehouse, or

      • (ii) entry into the duty-paid market for delivery to a bottle-your-own premises;

    • (c) a non-duty-paid marked special container of spirits for

      • (i) delivery to another excise warehouse,

      • (ii) if the container is marked for delivery to and use by a registered user, delivery to a registered user for use in accordance with their registration, or

      • (iii) if the container is marked for delivery to and use at a bottle-your-own premises, entry into the duty-paid market for delivery to a bottle-your-own premises; or

    • (d) an imported non-duty-paid marked special container of alcohol, for export.

  • 2002, c. 22, s. 151
  • 2007, c. 18, s. 105

Marginal note:Return of duty-paid alcohol

 If packaged alcohol that has been removed from an excise warehouse for entry into the duty-paid market is returned to that warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

Marginal note:Return of non-duty-paid alcohol

 If non-duty-paid packaged alcohol that has been removed from an excise warehouse in accordance with section 147 is returned to an excise warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

Marginal note:Return of non-duty-paid wine

 If non-duty-paid packaged wine that has been removed from an excise warehouse under subparagraph 151(2)(a)(viii) is returned to that warehouse under prescribed conditions, the wine may, if it had not been entered into the duty-paid market, be entered into the warehouse as non-duty-paid packaged wine.

  • 2007, c. 18, s. 106

Marginal note:Supplying packaged alcohol to retail store

  •  (1) Subject to subsections (2) and 155(1), an excise warehouse licensee shall not, during a calendar year, supply from a particular premises specified in the excise warehouse licence of the licensee to a retail store more than 30% of the total volume of packaged alcohol supplied from those premises to all retail stores during the year.

  • Marginal note:Exception for certain retail stores

    (2) An excise warehouse licensee who is an alcohol licensee may supply from the particular premises to a retail store of the licensee more than 30% of that total volume if

    • (a) the store is located at a place at which the licensee produces or packages alcohol; and

    • (b) not less than 90% of the volume of packaged alcohol supplied to the store from the particular premises in the year consists of alcohol that was packaged by, or, if the licensee was responsible for the alcohol immediately before it was packaged, on behalf of, the licensee.

Marginal note:Exception for remote stores

  •  (1) On application in the prescribed form and manner by an excise warehouse licensee who is a liquor authority or a non-retailer of alcohol, the Minister may authorize the licensee to supply during a calendar year from a particular premises specified in their excise warehouse licence to a retail store more than 30% of the total volume of packaged alcohol to be supplied from the premises to all retail stores during the year if the Minister is satisfied that the delivery of packaged alcohol by railway, truck or water vessel to the store is not possible for five consecutive months in every year.

  • Marginal note:Revocation

    (2) The Minister may revoke an authorization under subsection (1) if

    • (a) the licensee makes a written request to the Minister to revoke the authorization;

    • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

    • (c) the Minister is no longer satisfied that the requirements of subsection (1) are met; or

    • (d) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (3) If the Minister revokes an authorization of a licensee, the Minister shall notify the licensee in writing of the revocation and its effective date.

Marginal note:Removal of special container

 An alcohol licensee who has marked a special container of alcohol may remove the container from their excise warehouse to return it to the bulk alcohol inventory of the licensee if the marking on the container is removed by the licensee in the manner approved by the Minister.

Marginal note:Removal of packaged wine from excise warehouse

 A wine licensee may remove non-duty-paid packaged wine from their excise warehouse to return it to the bulk wine inventory of the licensee.

Marginal note:Removal of packaged spirits from excise warehouse

 A spirits licensee may remove non-duty-paid packaged spirits from their excise warehouse to return them to the bulk spirits inventory of the licensee.

PART 4.1Cannabis

Exclusions

Marginal note:Non-application

 This Part does not apply to

  • (a) cannabis products that are produced in Canada by an individual for the personal use of the individual and in accordance with the Cannabis Act, but only to the extent that those cannabis products are used in activities that are not prohibited for those cannabis products under that Act;

  • (b) cannabis products that are produced in Canada by an individual for the medical purposes of the individual and in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, as applicable, but only to the extent that those cannabis products are used by the individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable; or

  • (c) cannabis products that are produced in Canada by a designated person — being an individual who is authorized under the Controlled Drugs and Substances Act or the Cannabis Act to produce cannabis for the medical purposes of another individual — for the medical purposes of the other individual and in accordance with whichever of those Acts is applicable, but only to the extent that those cannabis products are used by the designated person or the other individual in activities that are not prohibited for those cannabis products under whichever of those Acts is applicable.

  • 2018, c. 12, s. 73

Cannabis Production and Stamping

Marginal note:Production without licence prohibited

  •  (1) No person shall, other than in accordance with a cannabis licence issued to the person, produce cannabis products.

  • Marginal note:Deemed producer

    (2) A person that, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the production of a cannabis product is deemed to be producing the cannabis product and the other person is deemed not to be producing the cannabis product.

  • Marginal note:Exception

    (3) Subsection (1) does not apply in respect of

    • (a) the production of industrial hemp by-products by an industrial hemp grower; and

    • (b) a prescribed person that produces prescribed cannabis products, or cannabis products of a prescribed class, in prescribed circumstances or for a prescribed purpose.

  • 2018, c. 12, s. 73

Marginal note:Issuance of cannabis excise stamps

  •  (1) On application in the prescribed form and manner, the Minister may issue, to a cannabis licensee, stamps the purpose of which is to indicate that cannabis duty and, if applicable, additional cannabis duty have been paid on a cannabis product.

  • Marginal note:Quantity of cannabis excise stamps

    (2) The Minister may limit the quantity of cannabis excise stamps that may be issued to a person under subsection (1).

  • Marginal note:Security

    (3) No person shall be issued a cannabis excise stamp unless the person has provided any security required by regulation in a form satisfactory to the Minister.

  • Marginal note:Supply of cannabis excise stamps

    (4) The Minister may authorize a producer of cannabis excise stamps to supply, on the direction of the Minister, cannabis excise stamps to a person to which those stamps are issued under subsection (1).

  • Marginal note:Design and construction

    (5) The design and construction of cannabis excise stamps shall be subject to the approval of the Minister.

  • 2018, c. 12, s. 73

Marginal note:Counterfeit cannabis excise stamps

 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a cannabis excise stamp.

  • 2018, c. 12, s. 73

Marginal note:Unlawful possession of cannabis excise stamps

  •  (1) No person shall possess a cannabis excise stamp that has not been affixed to a packaged cannabis product in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty has been paid on the cannabis product.

  • Marginal note:Exceptions — possession

    (2) Subsection (1) does not apply to the possession of a cannabis excise stamp by

    • (a) the person that lawfully produced the cannabis excise stamp;

    • (b) the person to which the cannabis excise stamp is issued; or

    • (c) a prescribed person.

  • 2018, c. 12, s. 73

Marginal note:Unlawful supply of cannabis excise stamps

 No person shall dispose of, sell or otherwise supply, or offer to supply, a cannabis excise stamp otherwise than in accordance with this Act.

  • 2018, c. 12, s. 73

Marginal note:Cancellation of cannabis excise stamps

 The Minister may

  • (a) cancel a cannabis excise stamp that has been issued; and

  • (b) direct that it be returned or destroyed in a manner specified by the Minister.

  • 2018, c. 12, s. 73

Marginal note:Unlawful packaging or stamping

 No person shall package or stamp a cannabis product unless the person is a cannabis licensee or a prescribed person.

  • 2018, c. 12, s. 73

Marginal note:Unlawful removal

  •  (1) Except as permitted under section 158.15, no person shall remove a cannabis product from the premises of a cannabis licensee unless it is packaged and

    • (a) if the cannabis product is intended for the duty-paid market,

      • (i) it is stamped to indicate that cannabis duty has been paid, and

      • (ii) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, it is stamped to indicate that the additional cannabis duty has been paid; or

    • (b) if the cannabis product is not intended for the duty-paid market, all prescribed information is printed on or affixed to its container in a prescribed manner.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to a cannabis licensee that removes from their premises a cannabis product

    • (a) if the cannabis product is being removed

      • (i) for delivery to another cannabis licensee,

      • (ii) for export as permitted under the Cannabis Act,

      • (iii) for delivery to a person for sterilization in accordance with subparagraph 158.11(3)(a)(ii), or

      • (iv) for delivery to a person for analysis or destruction in accordance with subparagraph 158.3(a)(v);

    • (b) if the cannabis product is

      • (i) a low-THC cannabis product,

      • (ii) a prescription cannabis drug, or

      • (iii) a prescribed cannabis product or a cannabis product of a prescribed class; or

    • (c) in prescribed circumstances or for a prescribed purpose.

  • Marginal note:Removal by Minister

    (3) Subsection (1) does not apply to the removal of a cannabis product for analysis or destruction

    • (a) by the Minister; or

    • (b) by the Minister, as defined in subsection 2(1) of the Cannabis Act.

  • 2018, c. 12, s. 73
 
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