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Excise Act (R.S.C., 1985, c. E-14)

Full Document:  

Act current to 2024-05-01 and last amended on 2023-06-22. Previous Versions

PART VTobacco and Cigars and Manufacturers Thereof (continued)

Offences and Punishment (continued)

Marginal note:Unlawful sale or possession of manufactured tobacco or cigars

  •  (1) Subject to subsections (2) and (3), every person who sells or offers for sale or has in the person’s possession any manufactured tobacco or cigars, whether manufactured in or imported into Canada, not put up in packages and stamped with tobacco stamps or cigar stamps in accordance with this Act and the ministerial regulations,

    • (a) is guilty of an indictable offence and liable to

      • (i) a fine of not less than the amount determined under subsection (1.1) and not more than the amount determined under subsection (1.2), or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding 5 years; or

    • (b) is guilty of an offence punishable on summary conviction and liable to

      • (i) a fine of not less than the amount determined under subsection (1.1) and not more than the lesser of $500,000 and the amount determined under subsection (1.2), or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years.

  • Marginal note:Minimum amount

    (1.1) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of

    • (a) the total of

      • (i) $0.16 multiplied by the number of cigarettes, if any, to which the offence relates,

      • (ii) $0.11 multiplied by the number of tobacco sticks, if any, to which the offence relates,

      • (iii) $0.11 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and

      • (iv) $0.16 multiplied by the number of cigars, if any, to which the offence relates, and

    • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

  • Marginal note:Maximum amount

    (1.2) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of

    • (a) the total of

      • (i) $0.24 multiplied by the number of cigarettes, if any, to which the offence relates,

      • (ii) $0.16 multiplied by the number of tobacco sticks, if any, to which the offence relates,

      • (iii) $0.16 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and

      • (iv) $0.50 multiplied by the number of cigars, if any, to which the offence relates, and

    • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

  • Marginal note:Where possession not an offence

    (2) Subsection (1) does not apply to the possession of manufactured tobacco or cigars

    • (a) by a licensed tobacco manufacturer or licensed cigar manufacturer, in the manufactory of that manufacturer;

    • (b) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c), in that bonding warehouse;

    • (c) while the manufactured tobacco or cigars are in transit in accordance with ministerial regulations after having been removed in bond under ministerial regulations;

    • (d) in the case of cigars or imported manufactured tobacco, by a person licensed under the Customs Tariff to operate a bonded warehouse or under the Customs Act to operate a sufferance warehouse or duty free shop, in that warehouse or duty free shop;

    • (e) by a person who is an accredited representative for the personal or official use of that person;

    • (f) in the case of cigars or imported manufactured tobacco, as ships’ stores by a person if the acquisition and possession of the cigars or manufactured tobacco by that person are in accordance with the regulations made under the Customs Act, the Customs Tariff and the Excise Tax Act; or

    • (g) in such quantities as may be prescribed by ministerial regulations, where

      • (i) the manufactured tobacco or cigars were imported by an individual for consumption by the individual or for consumption by another person at the individual’s expense,

      • (ii) the manufactured tobacco or cigars were imported in quantities not in excess of such quantities as are prescribed by ministerial regulations made for the purposes of subsection 201(3), and

      • (iii) all duties, within the meaning assigned by subsection 2(1) of the Customs Act, payable on the manufactured tobacco or cigars have been paid.

  • Marginal note:Where sale or offer to sell not an offence

    (3) Subsection (1) does not apply to the sale or offer for sale of manufactured tobacco or cigars

    • (a) in the case of manufactured tobacco, by a licensed tobacco manufacturer for export from Canada in accordance with this Act and the ministerial regulations;

    • (a.1) in the case of cigars, by a licensed cigar manufacturer

      • (i) for export from Canada in accordance with this Act and the ministerial regulations, or

      • (ii) as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act;

    • (b) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c);

    • (c) by a person licensed under the Customs Tariff to operate a bonded warehouse, where

      • (i) the cigars were manufactured in Canada and are sold or offered for sale as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, or

      • (ii) the manufactured tobacco or cigars were imported and are, in accordance with this Act, the Customs Act and the Customs Tariff, sold or offered for sale to an accredited representative, to a duty free shop licensed under the Customs Act, as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, to an operator of a bonded warehouse licensed under the Customs Tariff or for export; or

    • (d) by a person licensed under the Customs Act to operate a duty free shop, if

      • (i) the manufactured tobacco was imported and is sold or offered for sale in accordance with that Act to a person about to leave Canada, or

      • (ii) the cigars are sold or offered for sale in accordance with that Act to a person about to leave Canada.

  • Marginal note:Imprisonment in default of payment

    (4) Where a fine is imposed under subsection (1), a term of imprisonment may be imposed in default of payment of the fine, but no such term shall exceed

    • (a) where the fine is imposed under paragraph (1)(a), five years in addition to any other term of imprisonment imposed on the person under that paragraph; and

    • (b) where the fine is imposed under paragraph (1)(b), two years in addition to any other term of imprisonment imposed on the person under that paragraph.

  • Marginal note:Offence to sell or distribute except in original package

    (5) Every person who

    • (a) sells or offers for sale any cigars or manufactured tobacco, other than cigarettes, otherwise than in or from the original package stamped with a cigar stamp or tobacco stamp in accordance with this Act and the ministerial regulations,

    • (b) sells or offers for sale any cigarettes otherwise than in the original package stamped with a tobacco stamp in accordance with this Act and the ministerial regulations, or

    • (c) distributes free of charge for advertising purposes any cigars or manufactured tobacco otherwise than in or from the original package stamped with a cigar stamp or tobacco stamp in accordance with this Act and the ministerial regulations,

    whether or not the proper duty has been paid under this Act or under the Customs Act and the Customs Tariff on the manufactured tobacco or cigars, is guilty of an offence punishable on summary conviction and liable to a fine not exceeding ten thousand dollars and, in default of payment of the fine, to imprisonment for a term not exceeding twelve months.

  • R.S., 1985, c. E-14, s. 240
  • 1989, c. 22, s. 12
  • 1993, c. 25, s. 52
  • 1994, c. 29, s. 15
  • 1995, c. 41, s. 112
  • 1999, c. 17, s. 144(E)
  • 2001, c. 16, s. 15
  • 2002, c. 22, s. 425(F)

 [Repealed, 1993, c. 25, s. 52]

PART VIDenatured Alcohol, Specially Denatured Alcohol and Wood Alcohol

Marginal note:Definitions

 In this Part, and in any regulation made under this Part,

denatured alcohol

denatured alcohol means alcohol in suitable admixture with such denaturants as to render it in the judgment of the Minister non-potable and to prevent recovery of the ethyl alcohol; (alcool dénaturé)

denatured spirits

denatured spirits means spirits in suitable admixture with such denaturants as to render them in the opinion of the Minister non-potable and to prevent recovery of the ethyl alcohol; (eau-de-vie dénaturée)

regulation

regulation means a regulation made under this Part; (règlement)

specially denatured alcohol

specially denatured alcohol means alcohol in suitable admixture with such special denaturants as have been approved by the Minister; (alcool spécialement dénaturé)

wood alcohol

wood alcohol means any volatile liquid, whether obtained by the destructive distillation of wood or otherwise, the chief constituent of which is methyl alcohol and which contains not more than twenty-five per cent by weight of acetone. (alcool méthylique)

  • R.S., c. E-12, s. 249
  • 1980-81-82-83, c. 68, s. 75

Marginal note:Exemption from duty

 Denatured alcohol and specially denatured alcohol that are intended for use in the arts and industries, or for fuel, light or power, or for any mechanical purpose, may be manufactured in Canada free from excise duty.

  • R.S., c. E-12, s. 250

Marginal note:Alcohol made and treated in distilleries

 Except as provided in this Act, no alcohol shall be manufactured, denatured or recovered in Canada, except in distilleries thereto licensed, and it is further declared that this section refers to and is binding on Her Majesty whether in right of Canada or any province.

  • R.S., c. E-12, s. 251

Marginal note:Denatured alcohol

  •  (1) Denatured alcohol shall be sold, delivered and transported without restriction to dealers, manufacturers and other persons.

  • Marginal note:Specially denatured alcohol

    (2) Specially denatured alcohol shall be imported, manufactured or sold only under such conditions as the Minister may by regulation prescribe.

  • Marginal note:Sale or delivery to manufacturer or dealer

    (2.1) Specially denatured alcohol shall not be sold or delivered to a manufacturer or dealer unless it is sold or delivered to the manufacturer or dealer, as the case may be,

    • (a) under a ministerial permit; and

    • (b) for a use in respect of which denatured alcohol would be unsuitable.

  • Marginal note:None for beverage purposes

    (3) No alcohol shall be manufactured or sold under this Part for beverage purposes.

  • R.S., 1985, c. E-14, s. 246
  • 1999, c. 17, s. 143(E)
  • 2000, c. 30, s. 169

Marginal note:Restriction on use of recovered alcohol

 The recovery of alcohol after it has been used for industrial purposes and its redistillation and purification shall only be done on the premises in which the alcohol was used or at a duly licensed distillery, and all alcohol recovered on those premises must be used in the same manufacturing establishment in which it was originally used.

  • R.S., c. E-12, s. 253

Marginal note:Labels on containers of methyl-hydrate or denatured alcohol

 All vessels containing wood alcohol or denatured alcohol, the labelling of which is not regulated by any regulations made under the Hazardous Products Act, shall be labelled in accordance with regulations prescribed under this Act for the purpose of ensuring that the contents of the vessels are clearly identified as a poison.

  • R.S., c. E-12, s. 254
  • R.S., c. 15(1st Supp.), s. 43

Marginal note:Licence necessary

 No person who has not been licensed as provided in this Act shall carry on the business of the manufacture of wood alcohol.

  • R.S., c. E-12, s. 255

Marginal note:Conditions of licence

  •  (1) A licence to carry on the business of the manufacture of wood alcohol may be granted to any person who has complied with this Act, if the granting of the licence has been approved by the district inspector and authorized by the Minister, and the person has, jointly with a guarantee company, approved by the Minister, entered into a bond to Her Majesty in the sum of four thousand dollars.

  • Marginal note:Conditions of bond

    (2) The bond entered into under subsection (1) shall be conditioned on the rendering of all accounts, inventories, statements and returns prescribed by law and the payment of all duties and penalties that the person to whom the licence is to be granted becomes liable to render or pay under this Act, and on the person faithfully complying with all the requirements of this Act according to their true intent and meaning.

  • R.S., c. E-12, s. 256

Marginal note:Fee for licence

 A person to whom a licence for the manufacture of wood alcohol is granted shall pay to the collector of the district or excise division in which he proposes to carry on the manufacturing of wood alcohol a licence fee prescribed by the regulations.

  • R.S., c. E-12, s. 257
  • R.S., c. 15(1st Supp.), s. 44

Marginal note:Application of certain provisions to manufacture methyl-hydrate

 All the provisions of this Act respecting bonded manufacturers, licences and the obligations of persons holding them, the keeping of books or accounts, and the making of returns, in so far as applied by ministerial regulations, and all provisions respecting penalties, in so far as applicable, have full force and effect with respect to the manufacture of wood alcohol, the manufacture, denaturing, special denaturing and recovery of alcohol, and the persons licensed as provided in this Act, as if those provisions had been enacted with special reference to the manufacture, denaturing, special denaturing and recovery of alcohol and the issue of licences for the manufacturers.

  • R.S., 1985, c. E-14, s. 252
  • 1999, c. 17, s. 144(E)
 

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