Excise Act, 2001 (S.C. 2002, c. 22)

236 [Repealed, 2014, c. 20, s. 77]

Marginal note:Diversion of non-duty-paid alcohol

• 237 (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free tobacco

  (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free cigars

  (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose.

• Marginal note:Diversion of duty-free tobacco in special excise warehouse

  (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose.

• Marginal note:Diversion of imported tobacco

  (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Diversion of unstamped vaping products

  (5.1) Every vaping product licensee is liable to a penalty in respect of a vaping product manufactured in Canada that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.68(2) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Diversion of imported vaping products

  (5.2) Every excise warehouse licensee is liable to a penalty in respect of an imported vaping product that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.69(2) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Amount of penalty for diversion of vaping products

  (5.3) The amount of a penalty for each vaping product that is removed from an excise warehouse for a purpose referred to in subsection (5.1) or (5.2) and that is not delivered or exported, as the case may be, for that purpose is equal to the amount determined by the formula

  (A + B) × 200%

  where

  A

  is the amount determined under Schedule 8 in respect of the vaping product, using the rates of duty applicable at the time the vaping product is removed from the excise warehouse; and

  B

  is

  • (a) if at least one province is prescribed for the purposes of the definition specified vaping province in section 2 at the time the vaping product is removed from the excise warehouse, the amount determined for A, and

  • (b) in any other case, 0.

• Marginal note:Exception

  (6) A licensee that would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol, tobacco product or vaping product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse.

Marginal note:Penalty in respect of unaccounted tobacco

238 Every excise warehouse licensee and every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product entered into their excise warehouse or special excise warehouse, as the case may be, if the licensee cannot account for the product

• (a) as being in the warehouse;

• (b) as having been removed from the warehouse in accordance with this Act; or

• (c) as having been destroyed by fire while kept in the warehouse.

Marginal note:Penalty in respect of unaccounted vaping products

• 238.01 (1) Every excise warehouse licensee is liable to a penalty in respect of a vaping product entered into their excise warehouse if the licensee cannot account for the vaping product

  • (a) as being in the warehouse;

  • (b) as having been removed from the warehouse in accordance with this Act; or

  • (c) as having been destroyed by fire while kept in the warehouse.

• Marginal note:Amount of penalty

  (2) The amount of a penalty for each vaping product that cannot be accounted for is equal to the amount determined by the formula

  (A + B) × 200%

  where

  A

  is the amount determined under Schedule 8 in respect of the vaping product, using the rates of duty applicable at the time the vaping product is entered into the excise warehouse; and

  B

  is

  • (a) if at least one province is prescribed for the purposes of the definition specified vaping province in section 2 at the time the vaping product is entered into the excise warehouse, the amount determined for A, and

  • (b) in any other case, 0.

Marginal note:Penalty in respect of unaccounted excise stamps

• 238.1 (1) Every person who is issued excise stamps is liable to a penalty if the person cannot account for the stamps as being in their possession unless

  • (a) the person can demonstrate that the stamps were affixed to tobacco products, cannabis products, vaping products or their containers in the manner prescribed for the purposes of the definition stamped in section 2 and that duty, other than special duty, has been paid on the tobacco products, cannabis products or vaping products; or

  • (b) in the case of stamps that were cancelled, the person can demonstrate that the stamps were returned or destroyed as directed by the Minister.

• Marginal note:Amount of the penalty

  (2) The amount of the penalty for each excise stamp that cannot be accounted for is equal to

  • (a) in the case of a tobacco excise stamp, the duty that would be imposed on a tobacco product for which the stamp was issued under subsection 25.1(1);

  • (b) in the case of a cannabis excise stamp, five times the total of the following amounts:

    • (i) the dollar amount set out in subparagraph 1(a)(i) of Schedule 7,

    • (ii) if the stamp is in respect of a specified province, three times the dollar amount set out in subparagraph 1(a)(i) of Schedule 7, and

    • (iii) if the stamp is in respect of a prescribed specified province, $5.00; or

  • (c) in the case of a vaping excise stamp

    • (i) if the stamp is in respect of a specified vaping province, $10.00, and

    • (ii) in any other case, $5.00.

Marginal note:Other diversions

239 Unless section 237 applies, every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol, a tobacco product, a cannabis product or a vaping product if

• (a) it was acquired by the person and duty was not payable because of the purpose for which the person acquired it or because of its destination; and

• (b) it is sold or used for a purpose or sent to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination.

Marginal note:Contravention of subsection 50(5)

240 Every tobacco licensee who contravenes subsection 50(5) is liable to a penalty equal to the total of

• (a) in the case of cigarettes, the number of cigarettes that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

  (A/5 + B) × 2

  where

  A

  is the rate of duty set out in section 1 of Schedule 1 that applied at the time the cigarettes were removed, and

  B

  is the rate of duty set out in paragraph 4(a) of Schedule 3 that applied at the time the cigarettes were removed,

• (b) in the case of tobacco sticks, the number of tobacco sticks that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

  (C + D) × 2

  where

  C

  is the rate of duty set out in section 2 of Schedule 1 that applied at the time the tobacco sticks were removed, and

  D

  is the rate of duty set out in paragraph 4(b) of Schedule 3 that applied at the time the tobacco sticks were removed, and

• (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, the number of kilograms of manufactured tobacco that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

  (E + F) × 40

  where

  E

  is the rate of duty set out in section 3 of Schedule 1 that applied at the time the manufactured tobacco was removed, and

  F

  is the rate of duty set out in paragraph 4(c) of Schedule 3 that applied at the time the manufactured tobacco was removed.

Marginal note:Contravention of section 71

241 Every person who contravenes section 71 is liable to a penalty equal to 200% of the duty that was imposed on the bulk spirits to which the contravention relates.

Marginal note:Contravention of section 72

242 Every person who contravenes section 72 is liable to a penalty equal to the number of litres of wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

Marginal note:Contravention of section 73, 74 or 90

• 243 (1) Unless section 239, 241, 242 or 243.1 or subsection (2) applies, every person who contravenes section 73, 74 or 90 is liable to a penalty equal to

  • (a) if the contravention relates to spirits, 200% of the duty that was imposed on the spirits; or

  • (b) if the contravention relates to wine, the number of litres of that wine multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

• Marginal note:Contravention of section 73 or 90 by licensed user

  (2) Every licensed user who exports, gives possession of or takes for use alcohol in contravention of section 73 or 90 is liable to a penalty equal to

  • (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or

  • (b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

Marginal note:Contravention of section 76, 89 or 91

243.1 Every person who contravenes section 76, 89 or 91 is liable to a penalty equal to

• (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or

• (b) if the contravention relates to wine, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

Marginal note:Spirits improperly used as DA or SDA

244 Every person who is required to export, return, dispose of or destroy an amount of spirits under paragraph 101(1)(a) or (b) or (2)(a) or (b) but is unable to do so because the amount has been used in the production of another product is liable to a penalty equal to the duty imposed under section 122 or levied under section 21.1 or subsection 21.2(1) of the Customs Tariff on the amount.

Marginal note:Contravention of section 78, 83 or 94

245 Every person who contravenes section 78, 83 or 94 is liable to a penalty equal to 100% of the duty that was imposed on the alcohol to which the contravention relates.

Marginal note:Contravention of section 81, 86, 92 or 93

246 Every person who contravenes section 81, 86, 92 or 93 is liable to a penalty equal to 50% of the duty that was imposed on the alcohol to which the contravention relates.

Marginal note:Unauthorized possession, etc., of SDA

247 Every person who contravenes any of sections 96 to 98, 100, 102 or 103 is liable to a penalty of $10 per litre of specially denatured alcohol to which the contravention relates.

Marginal note:Unauthorized possession, etc., of restricted formulation

247.1 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $10 per litre of restricted formulation to which the contravention relates.

Marginal note:Unauthorized removal of marked special container

248 Every excise warehouse licensee who removes a marked special container of alcohol from their excise warehouse for entry into the duty-paid market is liable to a penalty equal to 50% of the duty that was imposed on the alcohol in the container unless the container is marked for delivery to and use at a bottle-your-own premises and it is delivered to a bottle-your-own premises.