Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-11-16 and last amended on 2022-10-01. Previous Versions

PART 4.2Vaping Products (continued)

Manufacturing and Stamping (continued)

Marginal note:Prohibition — vaping products for sale

 No person shall purchase or receive for sale a vaping product

  • (a) from a manufacturer that the person knows, or ought to know, is not a vaping product licensee;

  • (b) that is required under this Act to be packaged and stamped unless it is packaged and stamped in accordance with this Act; or

  • (c) that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Unlawful possession or sale of vaping products

  •  (1) Except if prescribed circumstances exist, no person, other than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a vaping product unless

    • (a) it is packaged; and

    • (b) it is stamped to indicate that vaping duty has been paid.

  • Marginal note:Unlawful possession or sale — specified vaping province

    (2) Except if prescribed circumstances exist, no person, other than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a vaping product in a specified vaping province unless it is stamped to indicate that additional vaping duty in respect of the specified vaping province has been paid.

  • Marginal note:Exception — possession of vaping products

    (3) Subsections (1) and (2) do not apply to the possession of vaping products

    • (a) in the case of imported vaping products,

      • (i) by an excise warehouse licensee in their excise warehouse,

      • (ii) by a sufferance warehouse licensee in their sufferance warehouse, or

      • (iii) by a customs bonded warehouse licensee in their customs bonded warehouse;

    • (b) by a prescribed person that is transporting the vaping products under prescribed circumstances and conditions;

    • (c) by a person that possesses the vaping products for analysis or destruction in accordance with subparagraph 158.66(a)(iv);

    • (d) by an accredited representative for their personal or official use;

    • (e) by an individual who has imported the vaping products for their personal use in quantities not in excess of prescribed limits;

    • (f) by an individual who has manufactured the vaping products in accordance with subsection 158.35(3); or

    • (g) if the vaping products are vaping product drugs.

  • Marginal note:Exception — sale or offer for sale

    (4) Subsections (1) and (2) do not apply to the disposal, sale, offering for sale or purchase of a vaping product if

    • (a) the vaping product is an imported vaping product, an excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product for export and the vaping product is exported by the licensee in accordance with this Act;

    • (b) the vaping product is an imported vaping product and an excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product to an accredited representative for their personal or official use; or

    • (c) the vaping product is a vaping product drug.

Marginal note:Sale or distribution by licensee

  •  (1) Except if prescribed circumstances exist, no vaping product licensee shall distribute a vaping product or sell or offer for sale a vaping product to a person unless

    • (a) it is packaged;

    • (b) it is stamped to indicate that vaping duty has been paid; and

    • (c) if additional vaping duty in respect of a specified vaping province is imposed on the vaping product, it is stamped to indicate that the additional vaping duty has been paid.

  • Marginal note:Exceptions

    (2) Subsection (1) does not apply to the distribution, sale or offering for sale of a vaping product by a vaping product licensee

    • (a) if the distribution, sale or offering for sale is to

      • (i) another vaping product licensee, or

      • (ii) an accredited representative for their personal or official use;

    • (b) if the vaping product is exported by the vaping product licensee in accordance with this Act; or

    • (c) if the vaping product is a vaping product drug.

Marginal note:Packaging and stamping of vaping products

 A vaping product licensee that manufactures a vaping product shall not enter the vaping product into the duty-paid market unless

  • (a) the vaping product has been packaged by the licensee;

  • (b) the package has printed on it prescribed information;

  • (c) the vaping product is stamped at the time of packaging to indicate that vaping duty has been paid; and

  • (d) if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped at the time of packaging to indicate that additional vaping duty in respect of the specified vaping province has been paid.

Marginal note:Packaging and stamping of imported vaping products

  •  (1) Except if prescribed circumstances exist, if a vaping product is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,

    • (a) be packaged in a package that has printed on it prescribed information;

    • (b) be stamped to indicate that vaping duty has been paid; and

    • (c) if the vaping product is to be entered in the duty-paid market of a specified vaping province, be stamped to indicate that additional vaping duty in respect of the specified vaping province has been paid.

  • Marginal note:Exceptions for certain importations

    (2) Subsection (1) does not apply to a vaping product

    • (a) that is imported by a vaping product licensee for further manufacturing by the licensee;

    • (b) that a vaping product licensee is authorized to import under subsection 158.53(2); or

    • (c) that is imported by an individual for their personal use in quantities not in excess of prescribed limits.

Marginal note:Notice — absence of stamping

  •  (1) The absence on a vaping product of stamping that indicates that vaping duty has been paid is notice to all persons that vaping duty has not been paid on the vaping product.

  • Marginal note:Notice — specified vaping province

    (2) The absence on a vaping product of stamping that indicates that additional vaping duty in respect of a specified vaping province has been paid is notice to all persons that additional vaping duty in respect of the specified vaping province has not been paid on the vaping product.

Marginal note:Unstamped products to be warehoused

 If vaping products manufactured in Canada are not stamped by a vaping product licensee, the vaping product licensee must immediately enter the vaping products into the licensee’s excise warehouse.

Marginal note:Vaping product markings — warehousing

  •  (1) Subject to subsection (4), no person shall enter into an excise warehouse a container of vaping products unless the container has printed on it, or affixed to it, vaping product markings and other prescribed information.

  • Marginal note:Vaping product markings — imports

    (2) Subject to subsections (3) and (4), no person shall deliver a container of imported vaping products that does not have printed on it, or affixed to it, vaping product markings and other prescribed information to

    • (a) an accredited representative; or

    • (b) a customs bonded warehouse.

  • Marginal note:Delivery of imported stamped vaping products

    (3) A container of imported vaping products that were manufactured outside Canada and are stamped may be delivered to a customs bonded warehouse.

  • Marginal note:Exception in prescribed circumstances

    (4) A container of vaping products does not require vaping product markings to be printed on it, or affixed to it, if prescribed circumstances exist.

Marginal note:Non-compliant imports

  •  (1) If an imported vaping product intended for the duty-paid market is not stamped to indicate that vaping duty has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

  • Marginal note:Non-compliant imports — specified vaping province

    (2) If an imported vaping product intended for the duty-paid market of a specified vaping province is not stamped to indicate that additional vaping duty in respect of the province has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

  • Marginal note:Exception

    (3) Subsections (1) and (2) do not apply in prescribed circumstances.

Marginal note:Vaping products — waste removal

  •  (1) No person shall remove a vaping product that is waste from the premises of a vaping product licensee other than the licensee or a person authorized by the Minister.

  • Marginal note:Removal requirements

    (2) If a vaping product that is waste is removed from the premises of a vaping product licensee, it shall be dealt with in the manner authorized by the Minister.

Marginal note:Re-working or destruction of vaping products

  •  (1) A vaping product licensee may re-work or destroy a vaping product in the manner authorized by the Minister.

  • Marginal note:Importation for re-working or destruction

    (2) The Minister may authorize a vaping product licensee to import vaping products manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Responsibility for Vaping Products

Marginal note:Responsibility — vaping products manufactured in Canada

  •  (1) Subject to section 158.55, a person is responsible for a vaping product manufactured in Canada at any time if

    • (a) the person is

      • (i) the vaping product licensee that owns the vaping product at that time, or

      • (ii) if the vaping product is not owned at that time by a vaping product licensee, the vaping product licensee that last owned it; or

    • (b) the person is a prescribed person.

  • Marginal note:Responsibility — imported vaping products

    (2) Subject to sections 158.55 and 158.56, a person is responsible for an imported vaping product at any time if the person

    • (a) imported the vaping product; or

    • (b) is a prescribed person.

Marginal note:Person not responsible

 A person that is responsible for a vaping product ceases to be responsible for it if

  • (a) it is packaged and stamped and the duty on it is paid;

  • (b) it is consumed or used in the manufacturing of a vaping product that is

    • (i) a vaping product drug, or

    • (ii) a prescribed vaping product;

  • (c) it is taken for use and the duty on it is paid;

  • (d) it is taken for use in accordance with any of subparagraphs 158.66(a)(i) to (iv);

  • (e) it is exported;

  • (f) it is delivered to an accredited representative for their personal or official use;

  • (g) it is lost in prescribed circumstances and the person fulfils any prescribed conditions; or

  • (h) prescribed circumstances exist.

Marginal note:Imports for personal use

 An individual that imports vaping products for their personal use in quantities not in excess of prescribed limits is not responsible for those vaping products.

Imposition and Payment of Duty on Vaping Products

Marginal note:Imposition

 Duty is imposed on vaping products manufactured in Canada or imported in the amount determined under Schedule 8 and is payable

  • (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are packaged; and

  • (b) in the case of imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.

 
Date modified: