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Excise Act (R.S.C., 1985, c. E-14)

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Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART IIDistilleries (continued)

Offences and Punishment (continued)

Marginal note:Removal of spirits contrary to regulations

 Where spirits are removed from a distillery in a cask or package containing less than a quantity prescribed by the regulations, those spirits are forfeited to the Crown and shall be seized by an officer and dealt with accordingly.

  • R.S., c. E-12, s. 162
  • R.S., c. 15(1st Supp.), s. 26

Marginal note:Sale of spirits unlawfully manufactured, etc.

  •  (1) Every person is guilty of an indictable offence who, without lawful excuse, sells or offers for sale or purchases or has in the person’s possession any spirits, whether or not the person is the owner thereof,

    • (a) unlawfully manufactured;

    • (b) unlawfully imported;

    • (c) unlawfully or fraudulently removed from any distillery;

    • (d) unlawfully or fraudulently removed from any bonded manufactory;

    • (e) unlawfully or fraudulently removed from any bonded warehouse;

    • (f) unlawfully or fraudulently removed from any place where spirits subject to drawback are held;

    • (g) that have been released from excise bond exempt from duty as being for the use of a person or organization by law entitled to the exemption, but which spirits have been subsequently sold or otherwise disposed of to a person not entitled to any exemption; or

    • (h) that have been released from excise bond either free or at a reduced rate of duty for a specific use and have been subsequently diverted to a use other than that for which the exemption was given.

  • Marginal note:Punishment

    (2) Every person who is convicted of an offence under subsection (1) is liable to

    • (a) a fine of not more than ten thousand dollars and not less than five hundred dollars,

    • (b) imprisonment for a term not exceeding twelve months, or

    • (c) both fine and imprisonment

    and, in default of payment of a fine imposed under paragraph (a) or (c), to imprisonment for a term not exceeding twelve months in addition to the imprisonment, if any, imposed under paragraph (b) or (c).

  • Marginal note:Forfeiture

    (3) All spirits referred to in subsection (1) wherever they are found, and all horses and vehicles, vessels and other appliances that have been or are being used for the purpose of transporting the spirits so manufactured, imported, removed, disposed of, diverted, or in or on which the spirits are found, shall be forfeited to the Crown, and may be seized and detained by any officer and be dealt with accordingly.

  • R.S., 1985, c. E-14, s. 163
  • 1989, c. 22, s. 11

 [Repealed, 1995, c. 36, s. 14]

Marginal note:Illegal possession

 Where any two or more persons are found together and they, or any one of them, have in their or his possession any spirits liable to seizure under this Act, each of those persons having knowledge of the fact of the possession is guilty of an offence and punishable in accordance with the provisions of this Act as if the goods were found in his possession.

  • R.S., c. E-12, s. 165

Marginal note:Attaching to packages of spirits any unauthorized label

 Every person who, except as authorized by the Trademarks Act, attaches to any bottle, flask or other package of spirits any label, stamp or other device containing any statement or information other than the name of the spirits and the name of the bottler and his place of residence, unless the form and wording thereof have been first approved by the Minister, is guilty of an offence and liable on summary conviction,

  • (a) for a first offence, to a fine not exceeding fifty dollars, and

  • (b) for each subsequent offence, to a fine not exceeding one hundred dollars,

and in addition thereto in either case to an additional fine equal to eleven cents per litre on the reputed contents of the bottles, flasks or other packages so illegally labelled or stamped.

  • R.S., 1985, c. E-14, s. 166
  • 2014, c. 20, s. 366(E)

PART IIIBreweries

Interpretation

Marginal note:Provisions additional to Part I

 The provisions of this Part are to be construed as additional or supplemental to the provisions of Part I applicable to breweries.

  • R.S., c. E-12, s. 168

Licences

Marginal note:Conditions of licence

  •  (1) A licence to carry on the trade or business of a brewer may be granted to any person who has complied with the requirements of this Act, if the granting of the licence has been approved by the district inspector, and the person has, jointly with a guarantee company approved by the Minister, entered into a bond to Her Majesty in an amount determined by the Minister that is not less than five thousand dollars.

  • Marginal note:Conditions of bond

    (2) The bond entered into under subsection (1) shall be conditioned on the rendering of all accounts 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, with regard to the accounts, duties and penalties, as well as to all other matters and things whatever.

  • R.S., c. E-12, s. 169

Marginal note:Fee for licence

  •  (1) A person to whom a licence for brewing is granted shall pay to the collector of the district or excise division in which he proposes to carry on the trade or business of a brewer a licence fee prescribed by the regulations.

  • Marginal note:Manufacture of malt products

    (2) No person shall manufacture a product if malt or malt and other ingredients are infused and the resultant wort is used in the manufacturing process, unless a formula is submitted and approved by the Minister, and the person manufacturing the product has, jointly with a guarantee company approved by the Minister, entered into a bond to Her Majesty in the sum of five thousand dollars conditioned on the complete manufacture of the goods in accordance with the formula and compliance with such other conditions as are prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 169
  • 1999, c. 17, s. 144(E)

Duties of Excise

Marginal note:Duties — beer or malt liquor

  •  (1) There shall be imposed, levied and collected on every hectolitre of beer or malt liquor, other than beer concentrate, the duties of excise set out in Part II of the schedule, which duties shall be paid to the collector as provided in this Act.

  • Marginal note:Duties — beer concentrate

    (1.1) There shall be imposed, levied and collected, and paid to the collector as provided in this Act, on beer concentrate the duties of excise determined by the following formula:

    A × B × C

    where

    A
    is the quantity in litres of beer concentrate,
    B
    is the maximum quantity, determined in hectolitres, of any particular beer product that can be transformed in a manner approved by the Minister from a litre of that beer concentrate, and
    C
    is the rate of duties of excise set out in Part II of the schedule that is applicable in respect of a hectolitre of that particular beer product.
  • Marginal note:Wastage allowance

    (2) Notwithstanding subsection (1), where beer or malt liquor is produced by a person licensed under section 168 to carry on the trade or business of a brewer, an allowance prescribed by the regulations shall be made for loss in production based on the duty assessed on the beer or malt liquor produced, but the allowance shall not exceed five per cent thereof.

  • R.S., 1985, c. E-14, s. 170
  • 2007, c. 2, s. 60
  • 2017, c. 33, s. 167

Marginal note:Reduced rates — production

  •  (1) With respect to the first 75,000 hectolitres of beer and malt liquor brewed in Canada per year by a licensed brewer and any person related or associated with the brewer, there shall be imposed, levied and collected on each of those hectolitres the duties of excise set out in Part II.1 of the schedule, which duties shall be paid to the collector as provided in this Act, and section 170 does not apply to those hectolitres.

  • Marginal note:Exclusion — beer concentrate

    (1.1) Despite subsection (1), the duties of excise set out in Part II.1 of the schedule do not apply to beer concentrate or beer transformed from beer concentrate and that beer concentrate or beer transformed from beer concentrate does not count toward the determination under subsection (1) of the first 75,000 hectolitres of beer and malt liquor brewed in Canada per year.

  • Marginal note:Reduced rates — packaging

    (2) If the beer or malt liquor described by subsection (1) is packaged by a licensed brewer (in this subsection, referred to as the “packaging brewer”) other than the licensed brewer or related or associated person referred to in that subsection, there shall be imposed, levied and collected on every hectolitre of beer or malt liquor packaged by the packaging brewer duties of excise at the rates that applied to the beer or malt liquor under subsection (1).

  • Marginal note:Exclusion of exports and de-alcoholized beer

    (3) In subsection (1), the reference to “first 75,000 hectolitres of beer and malt liquor brewed in Canada” does not include

    • (a) beer or malt liquor that is exported or deemed to be exported under section 173; and

    • (b) beer or malt liquor containing not more than 0.5 % absolute ethyl alcohol by volume.

  • Marginal note:Treatment of contract production

    (4) If, at any time, beer or malt liquor is brewed by a licensed brewer for another licensed brewer under an agreement with the other brewer, subsection (1) applies as though it had been brewed by the brewer who has brewed the greater volume of beer and malt liquor during the year up to that time.

  • Marginal note:Election for related or associated licensees

    (5) If a licensed brewer is related or associated with one or more other licensed brewers, each of the brewers must file with the Minister an election in a form and manner satisfactory to the Minister that allocates the 75,000 hectolitre quantity amongst the brewers. The election must be filed no later than the filing due date of the first return in which the brewer reports duties that are imposed, levied and collected under subsection (1).

  • Marginal note:Brewer formed by business combination

    (6) For the purposes of this section, if, in a year, two or more brewers (each of which is referred to in this subsection as a “predecessor brewer”) are amalgamated, merged or otherwise combined to form a new brewer, the following rules apply:

    • (a) the aggregate production of beer and malt liquor of the new and predecessor brewers for that year will be used for the purposes of applying subsection (1);

    • (b) the new brewer must determine the amount of duty that would have been imposed, levied and collected under subsection (1) on the aggregate production; and

    • (c) the new brewer is liable for and must, within 60 days of the combination, report and pay any difference between the amount calculated under paragraph (b) and the amounts paid by the predecessor brewers.

  • 2007, c. 2, s. 61
  • 2017, c. 33, s. 168
 
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