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Excise Act (R.S.C., 1985, c. E-14)

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Act current to 2019-08-15 and last amended on 2019-06-17. Previous Versions

PART VTobacco and Cigars and Manufacturers Thereof (continued)

Canadian Leaf Tobacco (continued)

Marginal note:Fee for licence

 A person to whom a licence to carry on the trade or business of a tobacco packer is granted shall pay to the collector of the district or excise division in which he proposes to carry on that trade or business a licence fee prescribed by the regulations.

  • R.S., c. E-12, s. 227
  • R.S., c. 15(1st Supp.), s. 38

Marginal note:Regulations

 The Minister may, subject to this Act, make such regulations as to him seem necessary for carrying into effect and enforcing the provisions of this Act concerning Canadian raw leaf tobacco,

  • (a) for causing accounts to be kept by tobacco packers of all Canadian raw leaf tobacco received by them, and the stemmed and unstemmed leaf subsequently disposed of by them by removal, sale or otherwise;

  • (b) for the stemming, reconstituting or converting of Canadian raw leaf tobacco and for the disposal of stemmed, reconstituted or converted leaf and of stems and waste;

  • (c) for the preparing and packing of Canadian raw leaf tobacco and for the disposal thereof to persons or firms licensed under this Act who are entitled to receive raw leaf tobacco, or for export;

  • (d) for the packaging, stamping and disposal of Canadian raw leaf tobacco for consumption;

  • (e) for providing for any difference in weight occurring in, or resulting from, the operations of handling, storing, preparing, packing, stemming or otherwise treating Canadian raw leaf tobacco; and

  • (f) for the inspection of Canadian raw leaf tobacco on the premises of licensed tobacco packers and the collection of duty thereon, and as is deemed most effective for the prevention of frauds in the payment of that duty.

  • R.S., c. E-12, s. 228
  • R.S., c. 15(1st Supp.), s. 39

Marginal note:Monthly account

 Every tobacco packer shall render monthly to the collector a just and true account, in writing, extracted from the books kept as required by this Act, which account shall exhibit such particulars as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 224
  • 1999, c. 17, s. 144(E)

Marginal note:Selling, etc., unstamped raw leaf tobacco

  •  (1) Every person who, except as provided in this Act, without having a licence as required by this Act, disposes of, sells, offers for sale, purchases or has in the person’s possession Canadian raw leaf tobacco that is not stamped with a tobacco stamp in accordance with this Act and the ministerial regulations is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months.

  • Marginal note:Forfeiture

    (2) Any tobacco found that is not packaged and stamped as required by this Act shall be forfeited to the Crown and be seized and dealt with accordingly.

  • Marginal note:Exceptions

    (3) It shall be deemed not to be an offence against this section for a tobacco grower to have in his possession

    • (a) tobacco grown by him on his own property for sale or other disposal only to persons licensed and thereby entitled to receive the tobacco, where the tobacco is either on his property or is being transported by him for the purpose of being cured as provided in paragraph (b) or after being cured as provided in that paragraph; and

    • (b) tobacco grown by any other person, if the tobacco grower, in whose possession it is, operates a tobacco drying kiln on his property and the tobacco is on that property with the written permission of a superior officer and solely for the purpose of being cured and returned to the other person forthwith after completion of the curing process.

  • R.S., 1985, c. E-14, s. 225
  • 1993, c. 25, s. 45
  • 1999, c. 17, s. 144(E)

Offences and Punishment

Marginal note:Operating without a licence

 Every person who, without having a licence under this Act then in force,

  • (a) manufactures any tobacco or cigars except as permitted by this Act,

  • (b) claiming to have grown any tobacco and manufactured it solely for his own use, sells or barters away any tobacco so manufactured, or

  • (c) having purchased any raw leaf tobacco grown in Canada from the cultivator thereof, in any way unlawfully manufactures that tobacco and sells it, or offers it for sale in a manufactured state,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 226
  • 1993, c. 25, s. 46

Marginal note:Unlawfully manufacturing home produced tobacco

 Every person who, without having a licence under this Act then in force, manufactures any tobacco grown on his own land or property

  • (a) for the purpose of sale, or for any purpose other than use by himself and such members of his family as are resident with him on the farm or premises on which the tobacco was grown,

  • (b) into any product other than Canada twist, or

  • (c) in excess of fifteen kilograms (15 kg) for each adult member of the family resident on the farm or premises,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 227
  • 1993, c. 25, s. 47

Marginal note:Further punishment

 Every person who becomes liable to a punishment provided for in section 226 or 227 shall, in addition thereto, forfeit to Her Majesty in right of Canada triple the amount of excise duty and licence fee that should have been paid by that person under this Act.

  • R.S., 1985, c. E-14, s. 228
  • 1993, c. 25, s. 48

 [Repealed, 1993, c. 25, s. 48]

Marginal note:Unlawful packaging or stamping

  •  (1) Every person who packages or stamps tobacco or cigars in such a way as to indicate that the duties of excise have been paid in respect of the tobacco or cigars or, in the case of imported tobacco or cigars, that the additional customs duty has been paid under the Customs Act and the Customs Tariff in respect of the tobacco or cigars, and who is not a licensed tobacco manufacturer, a licensed cigar manufacturer or a tobacco packer or, where the tobacco or cigars have been reported under the Customs Act and released under that Act, the importer or owner of the tobacco or cigars,

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

      • (i) a fine of not less than ten thousand dollars and not more than one million dollars, or

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

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

      • (i) a fine of not less than one thousand dollars and not more than one hundred thousand dollars, or

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

  • Marginal note:Imprisonment in default of payment

    (2) 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:Forfeiture

    (3) All articles subject to excise on the premises at the time the tobacco or cigars referred to in subsection (1) are discovered shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 233
  • 1993, c. 25, s. 49

 [Repealed, 1993, c. 25, s. 49]

Marginal note:Unlawful removal of tobacco or cigars

  •  (1) Every person who removes or permits the removal from any manufactory, or from any place where tobacco or cigars are made, any manufactured tobacco or cigars

    • (a) without the manufactured tobacco or cigars being packaged,

    • (b) without the manufactured tobacco or cigars being stamped with tobacco stamps or cigar stamps in accordance with this Act and the ministerial regulations, where the tobacco or cigars are entered for consumption, or

    • (c) without having printed on, or affixed to, the packages, cartons, boxes, crates or other containers containing the manufactured tobacco or cigars tobacco markings in accordance with this Act and the regulations, where the tobacco or cigars are removed in bond,

    is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars or to both that fine and imprisonment for a term not exceeding twelve months.

  • Marginal note:Imprisonment in default of payment

    (2) 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 twelve months in addition to any other term of imprisonment imposed on the person under that subsection.

  • Marginal note:Forfeiture

    (3) All manufactured tobacco or cigars removed in contravention of subsection (1), or possessed without being stamped with tobacco stamps or cigar stamps as required by this Act and the ministerial regulations or without the packages, cartons, boxes, crates or other containers in which the manufactured tobacco or cigars are contained having printed on them or affixed to them tobacco markings as required by this Act and the regulations, shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 235
  • 1993, c. 25, s. 50
  • 1994, c. 37, s. 7
  • 1999, c. 17, s. 144(E)
 
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