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Excise Act, 2001 (S.C. 2002, c. 22)

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

PART 6Enforcement (continued)

Offences and Punishment (continued)

Marginal note:Other contraventions

 Every person who contravenes a provision of this Act or the regulations for which no other offence is specified in this Act is guilty of an offence and is liable on summary conviction to a fine of not more than $100,000 or to imprisonment for a term of not more than 12 months, or to both.

Marginal note:Defence of due diligence

 No person shall be convicted of an offence under this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence.

Marginal note:Compliance orders

 If a person has been convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make any order that it considers proper in order to enforce compliance with the provision.

Marginal note:No penalty unless imposed before laying of information

 A person who is convicted of failing to comply with a provision of this Act is not liable to pay a penalty under any of sections 233 to 253 for the same failure unless the penalty was imposed under section 254 before the information or complaint giving rise to the conviction was laid or made.

Marginal note:Officers of corporations, etc.

 If a person other than an individual commits an offence under this Act, every officer, director or agent of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted.

Marginal note:Offences by employees or agents

 In any prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused, whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

Marginal note:Power to decrease punishment

 Despite the Criminal Code or any other law, the court has, in any prosecution or proceeding under this Act, neither the power to impose less than the minimum fine fixed under this Act nor the power to suspend sentence.

Marginal note:Information or complaint

  •  (1) An information or complaint under this Act may be laid or made by any officer. If an information or complaint is purported to have been laid or made under this Act, it is deemed to have been laid or made by an officer and shall not be called into question for lack of authority of the officer except by the Minister or a person acting for the Minister or for Her Majesty.

  • Marginal note:Two or more offences

    (2) An information or complaint in respect of an offence under this Act may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences.

  • Marginal note:Limitation of prosecutions

    (3) Despite subsection 786(2) of the Criminal Code, an information or complaint in respect of an offence under this Act that is to be prosecuted by way of summary conviction proceedings may be laid or made within two years after the day on which the matter of the information or complaint arose.

Proceeds of Crime

Marginal note:Property obtained from offences

  •  (1) No person shall possess any property or any proceeds of any property knowing that all or any part of it was obtained or derived directly or indirectly as a result of

    • (a) the commission of an offence under section 214 or subsection 216(1), 218(1), 218.1(1), 218.2(1) or 231(1); or

    • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

  • Marginal note:Punishment

    (2) Every person who contravenes subsection (1)

    • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

    • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

  • Marginal note:Exception

    (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person possesses property or the proceeds of property mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

Marginal note:Laundering proceeds of certain offences

  •  (1) No person shall use, transfer the possession of, send or deliver to any person or place, transport, transmit, alter, dispose of or otherwise deal with, in any manner or by any means, any property or any proceeds of any property with intent to conceal or convert that property or those proceeds, knowing that all or part of that property or those proceeds were obtained or derived directly or indirectly as a result of

    • (a) the commission of an offence under section 214 or subsection 216(1), 218(1), 218.1(1) or 218.2(1); or

    • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

  • Marginal note:Punishment

    (2) Every person who contravenes subsection (1)

    • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

    • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

  • Marginal note:Exception

    (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person does any of the things mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

Marginal note:Part XII.2 of Criminal Code applicable

  •  (1) Sections 462.3 and 462.32 to 462.5 of the Criminal Code apply, with any modifications that the circumstances require, in respect of proceedings for an offence under section 214, subsection 216(1), 218(1), 218.1(1) or 218.2(1) or section 230 or 231.

  • Marginal note:Reference to enterprise crime offence

    (2) For the purpose of subsection (1), the references in sections 462.37 and 462.38 and subsection 462.41(2) of the Criminal Code to an enterprise crime offence are deemed to include references to the offences referred to in subsection (1).

Penalties

Marginal note:Contravention of section 34 or 37

 Every tobacco licensee who contravenes section 34 or 37 is liable to a penalty equal to 200% of the duty that was imposed on the tobacco product to which the contravention relates.

Marginal note:Contravention of section 158.13

 Every cannabis licensee that contravenes section 158.13 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A
is the greater of
  • (a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

  • (b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;

B
is
  • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (b) in any other case, 0; and

C
is
  • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

  • (b) in any other case, 0.

Marginal note:Contravention of section 158.46 or 158.49

 Every vaping product licensee that contravenes section 158.46 or 158.49 is liable to a penalty equal to the amount determined by the formula

(A + B) × 200%

where

A
is the amount determined under Schedule 8 in respect of the vaping products to which the contravention relates, using the rates of duty applicable at the time the contravention occurred; and
B
is
  • (a) if the contravention occurred in a specified vaping province, the amount determined for A, and

  • (b) in any other case, 0.

Marginal note:Contravention of certain sections

  •  (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151, 158.15, 158.5, 158.52 or 158.67 is liable to a penalty of not more than $25,000.

  • Marginal note:Failure to comply

    (2) Every person who fails to return or destroy stamps as directed by the Minister under paragraph 25.5(b), or who fails to re-work or destroy a tobacco product in the manner authorized by the Minister under section 41, is liable to a penalty of not more than $25,000.

  • Marginal note:Failure to comply

    (3) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.07(b), or that fails to re-work or destroy a cannabis product in the manner authorized by the Minister under section 158.16, is liable to a penalty of not more than $25,000.

  • Marginal note:Failure to comply

    (4) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.4(b), or that fails to re-work or destroy a vaping product in the manner authorized by the Minister under section 158.53, is liable to a penalty of not more than $25,000.

  • 2002, c. 22, s. 234
  • 2007, c. 18, s. 121
  • 2010, c. 12, s. 43
  • 2018, c. 12, s. 85
  • 2022, c. 10, s. 70

Marginal note:Contravention of section 158.02, 158.1, 158.11 or 158.12

 Every person that contravenes section 158.02, 158.1, 158.11 or 158.12 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A
is the greater of
  • (a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

  • (b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;

B
is
  • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (b) in any other case, 0; and

C
is
  • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

  • (b) in any other case, 0.

Marginal note:Contravention — sections 158.35 and 158.43 to 158.45

 Every person that contravenes section 158.35, that receives for sale vaping products in contravention of section 158.43 or that sells or offers to sell vaping products in contravention of section 158.44 or 158.45 is liable to a penalty equal to the amount determined by the formula

(A + B) × 200%

where

A
is the amount determined under Schedule 8 in respect of the vaping products to which the contravention relates, using the rates of duty applicable at the time the contravention occurred; and
B
is
  • (a) if the contravention occurred in a specified vaping province, the amount determined for A, and

  • (b) in any other case, 0.

Marginal note:Penalty for unauthorized export of raw leaf tobacco

 Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $25,000.

 [Repealed, 2014, c. 20, s. 77]

Marginal note:Diversion of non-duty-paid alcohol

  •  (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose.

  • Marginal note:Diversion of duty-free tobacco

    (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Diversion of duty-free cigars

    (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose.

  • Marginal note:Diversion of duty-free tobacco in special excise warehouse

    (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose.

  • Marginal note:Diversion of imported tobacco

    (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Diversion of unstamped vaping products

    (5.1) Every vaping product licensee is liable to a penalty in respect of a vaping product manufactured in Canada that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.68(2) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Diversion of imported vaping products

    (5.2) Every excise warehouse licensee is liable to a penalty in respect of an imported vaping product that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.69(2) if the product is not delivered or exported, as the case may be, for that purpose.

  • Marginal note:Amount of penalty for diversion of vaping products

    (5.3) The amount of a penalty for each vaping product that is removed from an excise warehouse for a purpose referred to in subsection (5.1) or (5.2) and that is not delivered or exported, as the case may be, for that purpose is equal to the amount determined by the formula

    (A + B) × 200%

    where

    A
    is the amount determined under Schedule 8 in respect of the vaping product, using the rates of duty applicable at the time the vaping product is removed from the excise warehouse; and
    B
    is
    • (a) if at least one province is prescribed for the purposes of the definition specified vaping province in section 2 at the time the vaping product is removed from the excise warehouse, the amount determined for A, and

    • (b) in any other case, 0.

  • Marginal note:Exception

    (6) A licensee that would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol, tobacco product or vaping product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse.

 
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