Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Transitional treatment of packaged wine in inventory of small manufacturers

• 309 (1) If tax under Part IV of the Excise Tax Act is not payable in respect of packaged wine because it was produced by a person who is exempt from payment of excise tax under the Small Manufacturers or Producers Exemption Regulations, subsection 135(1) does not apply to the wine if it was packaged before the implementation date.

• Marginal note:Determination of sales for transitional purposes

  (2) For the period beginning on the implementation date and ending on the day that is one year after that day, the words “products subject to duty under subsection (1), or would have been so subject to duty in the absence of this subsection,” in paragraph 135(2)(b) shall be read as “goods referred to in paragraph 2(1)(a) of the Small Manufacturers or Producers Exemption Regulations”.

Marginal note:Application of Act to tax-paid packaged wine

• 310 (1) If packaged wine on which tax imposed under section 27 of the Excise Tax Act became payable before the implementation date is entered into the excise warehouse of an excise warehouse licensee on or before the end of six months after that day, this Act applies in respect of the wine as though it were produced and packaged in Canada by the licensee and the licensee were permitted under this Act to produce and package it on the day it is entered into the warehouse.

• Marginal note:Refund of excise tax paid on packaged wine

  (2) If the tax imposed under section 27 of the Excise Tax Act in respect of the wine entered into the warehouse has been paid, the licensee may apply to the Minister for a refund of the tax.

• Marginal note:Limitation

  (3) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Application of Act to tax-paid bulk wine

• 311 (1) If bulk wine on which tax imposed under section 27 of the Excise Tax Act became payable before the implementation date is entered into the specified premises of a licensed user on that day, this Act applies in respect of the wine as though it were produced in Canada on that day by the user and the user were permitted to produce the wine.

• Marginal note:Refund of excise tax paid on bulk wine

  (2) If the tax imposed under section 27 of the Excise Tax Act in respect of the wine entered into the specified premises of a licensed user has been paid, the user may apply to the Minister for a refund of the tax.

• Marginal note:Limitation

  (3) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Definitions

• 312 (1) The definitions in this subsection apply in this section.

  bonded manufacturer

  bonded manufacturer means a person who holds, before the implementation date, a licence under subsection 182(1) of the Excise Act. (fabricant entrepositaire)

  licensed pharmacist

  licensed pharmacist means a person who holds, before the implementation date, a licence under subsection 136(2) of the Excise Act. (pharmacien titulaire de licence)

• Marginal note:Application of Act to spirits in possession of bonded manufacturer or licensed pharmacist

  (2) If, on the implementation date, a bonded manufacturer or a licensed pharmacist possesses, in accordance with their licence, spirits that were produced before that day, the following rules apply:

  • (a) as of that day, the Excise Act ceases to apply in respect of the spirits; and

  • (b) this Act applies in respect of them as though

    • (i) in the case of bulk spirits, the spirits were produced in Canada on that day by the manufacturer or the pharmacist and, if they are a licensed user, they were permitted to produce the spirits, or

    • (ii) in the case of packaged spirits, the spirits were produced and packaged in Canada on that day by the manufacturer or the pharmacist and they were permitted to produce and package the spirits.

• Marginal note:Refund of duty paid by bonded manufacturer or licensed pharmacist

  (3) If, on the implementation date, a bonded manufacturer or licensed pharmacist possesses spirits on which duty at a rate determined by the application of subsection 1(2) or (3) of Part I of the schedule to the Excise Act was paid, the manufacturer or pharmacist may apply to the Minister for a refund of the duty.

• Marginal note:Limitation

  (4) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Application of Act to spirits to be used for scientific purposes

313 If a person described by any of paragraphs 135(2)(a) to (d) of the Excise Act possesses, on the implementation date, spirits in respect of which a drawback under subsection 135(2) of that Act is granted at any time, the following rules apply:

• (a) as of that day, the Excise Act ceases to apply in respect of the spirits;

• (b) this Act applies in respect of them as though

  • (i) in the case of bulk spirits, the spirits were produced in Canada on that day by the person and, if the person is a registered user, the person were permitted to produce the spirits, or

  • (ii) in the case of packaged spirits,

    • (A) the spirits were produced and packaged in Canada on that day by the person,

    • (B) the person were permitted to produce and package the spirits, and

    • (C) if the person is a registered user, the spirits were, on that day, entered into an excise warehouse and then removed from the warehouse in accordance with subparagraph 147(1)(a)(iii); and

• (c) if the spirits are contained in a special container and the person is a registered user

  • (i) the person shall, despite subsection 78(1), mark the container on that day, and

  • (ii) the container is deemed to have been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(2)(a) on that day.

Marginal note:Application of Act to alcohol in bottle-your-own premises

314 The following rules apply to alcohol contained in a special container located on a person’s bottle-your-own premises on the implementation date:

• (a) the person shall, despite subsections 78(1) and 83(1), mark the container on that day;

• (b) in the case of spirits, this Act applies in respect of them as though the duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, that had become payable before that day in respect of them were imposed and, if the duty is paid, paid under this Act; and

• (c) in the case of wine,

  • (i) for the purposes of subsection 135(1), section 82 does not apply to the marking of the container under paragraph (a), and

  • (ii) this Act applies in respect of the wine as though the tax under section 27 of the Excise Tax Act that had become payable before that day in respect of it were a duty that was imposed and, if the tax is paid, paid under this Act.

Marginal note:Removal of alcohol from customs bonded warehouse

• 315 (1) If packaged alcohol is located in a customs bonded warehouse on the implementation date,

  • (a) the alcohol shall be removed from the warehouse; and

  • (b) any duty on the alcohol that is imposed under this Act or levied under section 21.2 of the Customs Tariff as a result of the operation of section 306 or 308 is payable on that day unless the alcohol is without delay entered into an excise warehouse.

• Marginal note:Exception

  (2) Subsection (1) does not apply if the alcohol in the customs bonded warehouse is to be

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

  • (b) delivered

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

    • (ii) to a duty free shop for sale in accordance with the Customs Act,

    • (iii) as ships’ stores in accordance with the Ships’ Stores Regulations, or

    • (iv) to an air carrier that is licensed under section 69 or 73 of the Canada Transportation Act to operate an international air service.

Marginal note:Transitional application of Distillery Regulations

• 315.1 (1) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 7, 8, 9, 12 and 15 of the Distillery Regulations, C.R.C., c. 569, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.

• Marginal note:Transitional application of Distillery Departmental Regulations

  (2) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 13 and 14 of the Distillery Departmental Regulations, C.R.C., c. 570, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.

Marginal note:Transitional treatment of Canadian manufactured tobacco products

• 316 (1) The following rules apply to a tobacco product manufactured in Canada before the implementation date:

  • (a) if tax on the product imposed under section 23 of the Excise Tax Act had not become payable before that day,

    • (i) the tax is relieved,

    • (ii) if duty on the product imposed under the Excise Act had not become payable before that day, the duty is relieved, and

    • (iii) this Act applies in respect of the product as though it were manufactured in Canada on that day by the manufacturer to the same extent that the product was manufactured immediately before that day;

  • (b) if the product was stamped or marked under the Excise Act, the product is deemed to be stamped or marked, as the case may be, under this Act; and

  • (c) the Excise Act and Parts III, VI and VII of the Excise Tax Act cease to apply in respect of the product.

• Marginal note:Refund of duty paid

  (2) If duty imposed under the Excise Act on a tobacco product manufactured in Canada before the implementation date had become payable before that day but tax under section 23 of the Excise Tax Act had not become payable before that day, the manufacturer of the product may apply to the Minister for a refund of the duty.

• Marginal note:Limitation

  (3) No refund shall be paid under this section unless the application for the refund is filed with the Minister in the prescribed form and manner within one year after the implementation date.

Marginal note:Refund for re-worked or destroyed tobacco product

316.1 If duty imposed under the Excise Act and tax imposed under section 23 of the Excise Tax Act on a tobacco product manufactured in Canada had become payable before the implementation date and a tobacco licensee under this Act who was, before that day, licensed under those Acts to manufacture the product re-works or destroys, on or after that day, the product in a manner authorized by the Minister, section 181 applies as though that duty and tax were duty paid under this Act.

Marginal note:Transitional treatment of imported tobacco products

317 The following rules apply to an imported tobacco product:

• (a) if duty levied under section 21 of the Customs Tariff and tax imposed under section 23 of the Excise Tax Act on the product had not become payable before the implementation date,

  • (i) the duty and tax are relieved, and

  • (ii) this Act and the Customs Act apply in respect of the product as though it were imported into Canada on that day by the importer;

• (b) if the product was stamped or marked under the Excise Act, the product is deemed to be stamped or marked, as the case may be, under this Act; and

• (c) the Excise Act and Parts III, VI and VII of the Excise Tax Act cease to apply in respect of the product.

Marginal note:Imported tobacco delivered to duty free shop before implementation date

317.1 If, on the implementation date, imported manufactured tobacco on which tax under section 23.12 of the Excise Tax Act was paid is possessed by a duty free shop licensee and no application for a refund of the tax has been made under that Act, this Act applies in respect of the tobacco as though the tax were special duty under section 53.

Marginal note:Transitional treatment of imported raw leaf tobacco

318 If, on the implementation date, a person possesses raw leaf tobacco that was imported before that day, this Act applies as though the person imported the tobacco on that day.

Marginal note:Removal of cigars from customs bonded warehouse

319 If cigars manufactured in Canada are located in a customs bonded warehouse on the implementation date, they shall be removed from the warehouse and entered into an excise warehouse on that day.

Marginal note:Removal of tobacco products from bonding warehouse of manufacturer

• 320 (1) If a tobacco product manufactured in Canada is, on the implementation date, located in a bonding warehouse of a person who is licensed under subsection 196(1) of the Excise Act, the product shall be removed from the warehouse and entered into an excise warehouse on that day.

• Marginal note:Removal of tobacco products from bonding warehouse of authorized distributor

  (2) If a tobacco product manufactured in Canada is, on the implementation date, located in a bonding warehouse of a person who is licensed under paragraph 50(1)(c) of the Excise Act, the product shall, on that day, be removed from the warehouse and

  • (a) entered into the person’s special excise warehouse, if the person is a special excise warehouse licensee and the product is one that the person is permitted under this Act to distribute; or

  • (b) returned to the excise warehouse of the tobacco licensee who manufactured the product.