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 2023-01-11 and last amended on 2022-12-15. Previous Versions

PART 4.2Vaping Products (continued)

Responsibility for Vaping Products (continued)

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.

Marginal note:Imposition — additional vaping duty

 In addition to the duty imposed under section 158.57, a duty in respect of a specified vaping province is imposed on vaping products manufactured in Canada, or imported, in prescribed circumstances in the amount determined in a prescribed manner 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.

Marginal note:Application of Customs Act

 The duties imposed under sections 158.57 and 158.58 on imported vaping products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Duty on vaping products taken for use

  •  (1) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, the following rules apply:

    • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

    • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

  • Marginal note:Specified vaping province — taken for use

    (2) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

  • Marginal note:Duty payable

    (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Marginal note:Duty on unaccounted vaping products

  •  (1) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), the following rules apply:

    • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

    • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

  • Marginal note:Specified vaping province — unaccounted vaping products

    (2) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

  • Marginal note:Duty payable

    (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

  • Marginal note:Exception

    (4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.2.

Marginal note:Duty relieved — unstamped vaping products

  •  (1) The duties imposed under sections 158.57 and 158.58 are relieved on a vaping product that is not stamped.

  • Marginal note:Vaping products imported for personal use

    (2) Subsection (1) does not apply to the importation of vaping products by an individual for their personal use to the extent that the quantity of the products imported exceeds the quantity permitted under Chapter 98 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to be imported without the payment of duties, as defined in Note 4 to that Chapter.

Marginal note:Duty relieved — importation by an individual

  •  (1) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured in Canada and are stamped.

  • Marginal note:Duty relieved — reimportation

    (2) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured outside Canada, were previously imported into Canada and are stamped.

Marginal note:Duty relieved — importation for destruction

 The duties imposed under paragraphs 158.57(b) and 158.58(b) are relieved on a stamped vaping product that was manufactured in Canada by a vaping product licensee and that is imported for re-working or destruction in accordance with section 158.53.

Marginal note:Duty relieved — prescribed circumstances

 The duties imposed under section 158.57 or 158.58 are relieved on a vaping product in prescribed circumstances.

Marginal note:Duty not payable

 Duty is not payable on a vaping product

  • (a) that is

    • (i) taken for analysis, or destroyed, by the Minister,

    • (ii) taken for analysis by a vaping product licensee in a manner approved by the Minister,

    • (iii) destroyed by a vaping product licensee in a manner approved by the Minister,

    • (iv) delivered by a vaping product licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

    • (v) a vaping product drug, or

    • (vi) a prescribed vaping product; or

  • (b) in prescribed circumstances.

Excise Warehouses

Marginal note:Restriction — entering vaping products

 No person shall enter into an excise warehouse

  • (a) a vaping product that is stamped; or

  • (b) any other vaping product except in accordance with this Act.

Marginal note:Prohibition on removal

  •  (1) Except if prescribed circumstances exist, no person shall remove from an excise warehouse vaping products manufactured in Canada.

  • Marginal note:Removal of Canadian manufactured vaping products

    (2) Subject to the regulations, a vaping product manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured it only if it is

    • (a) for export by the licensee in accordance with this Act; or

    • (b) for delivery to an accredited representative for their official or personal use.

  • Marginal note:Removal from warehouse for re-working or destruction

    (3) Subject to the regulations, vaping products manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 158.53.

Marginal note:Removal of imported vaping products

  •  (1) Except if prescribed circumstances exist, no person shall remove imported vaping products from an excise warehouse.

  • Marginal note:Exception

    (2) Subject to the regulations, imported vaping products may be removed from an excise warehouse

    • (a) for delivery to another excise warehouse;

    • (b) for delivery to an accredited representative for their official or personal use; or

    • (c) for export by the excise warehouse licensee in accordance with this Act.

PART 5General Provisions Concerning Duty and Other Amounts Payable

Fiscal Periods

Marginal note:Determination of fiscal months

  •  (1) The fiscal months of a person other than a cannabis licensee or a vaping product licensee shall be determined in accordance with the following rules:

    • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

    • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the person may select for the purposes of this Act fiscal months that meet the requirements set out in that subsection 243(2); and

    • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

  • Marginal note:Fiscal months — cannabis or vaping product licensee

    (1.01) For the purposes of this Act, the fiscal months of a cannabis licensee or a vaping product licensee are calendar months.

  • Marginal note:Determination of fiscal half-years

    (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

    • (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

    • (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

  • Marginal note:Notification of Minister

    (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

Reporting Periods

Marginal note:Reporting period — general

  •  (1) Subject to this section and section 159.2, the reporting period of a person is a fiscal month.

  • Marginal note:Reporting period — semi-annual

    (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

    • (a) the person is a licensee in one or more of the following categories:

      • (i) an excise warehouse licensee who does not hold in their excise warehouse manufactured tobacco or cigars,

      • (ii) a spirits licensee,

      • (iii) a wine licensee, or

      • (iv) a licensed user;

    • (b) the person has been licensed for a period exceeding twelve consecutive fiscal months;

    • (c) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

    • (d) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the particular fiscal year does not exceed $120,000;

    • (e) in the case where the person is an excise warehouse licensee, the liability of the person and any excise warehouse licensee associated with the person with respect to duty on alcohol entered into an excise warehouse

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (f) in the case where the person is a licensed user, the liability of the person and any licensed user associated with the person with respect to duty on alcohol entered into their specified premises

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (g) the volume of absolute ethyl alcohol added to the bulk spirits inventory of the person that is a spirits licensee and any spirits licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on spirits set out in section 1 of Schedule 4;
    • (h) the volume of wine added to the bulk wine inventory of the person that is a wine licensee and any wine licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on wine set out in paragraph (c) of Schedule 6; and
    • (i) the person is in compliance with the Act.

  • Marginal note:Deemed revocation

    (3) An authorization under subsection (2) is deemed to be revoked if

    • (a) any of the conditions described in paragraphs (2)(d) to (h) is no longer met in respect of the person, which revocation is effective as of the first day after the end of the fiscal half-year in which the condition is no longer met; or

    • (b) an excise warehouse licensee holds in their excise warehouse manufactured tobacco or cigars, which revocation is effective as of the first day of the fiscal month in which the licensee begins to hold the tobacco or cigars.

  • Marginal note:Revocation — other

    (4) The Minister may revoke an authorization if

    • (a) the person requests in writing the Minister to do so;

    • (b) the person fails to comply with the Act; or

    • (c) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

  • Marginal note:Deemed reporting period on revocation

    (6) If a revocation under paragraph (3)(b) or subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

 
Date modified: