Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Definition of coordinated cannabis duty system

• 304.1 (1) In this section, coordinated cannabis duty system means the system providing for the payment, collection and remittance of duty imposed under any of sections 158.2 and 158.22 and subsections 158.25(2) and 158.26(2) and any provisions relating to duty imposed under those provisions or to refunds in respect of any such duty.

• Marginal note:Coordinated cannabis duty system regulations — transition

  (2) The Governor in Council may make regulations, in relation to the joining of a province to the coordinated cannabis duty system,

  • (a) prescribing transitional measures, including

    • (i) a tax on the inventory of cannabis products held by a cannabis licensee or any other person, and

    • (ii) a duty or tax on cannabis products that are delivered prior to the province joining that system; and

  • (b) generally to effect the implementation of that system in relation to the province.

• Marginal note:Coordinated cannabis duty system regulations — rate variation

  (3) The Governor in Council may make regulations

  • (a) prescribing rules in respect of whether, how and when a change in the rate of duty for a specified province applies (in this section any such change in the rate of duty is referred to as a “rate variation”), including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

  • (b) if a manner of determining an amount of duty is to be prescribed in relation to the coordinated cannabis duty system,

    • (i) specifying the circumstances or conditions under which a change in the manner applies, and

    • (ii) prescribing transitional measures in respect of a change in the manner, including

      • (A) a tax on the inventory of cannabis products held by a cannabis licensee or any other person, and

      • (B) a duty or tax on cannabis products that are delivered prior to the change; and

  • (c) prescribing amounts and rates to be used to determine any refund that relates to, or is affected by, the coordinated cannabis duty system, excluding amounts that would otherwise be included in determining any such refund, and specifying circumstances under which any such refund shall not be paid or made.

• Marginal note:Coordinated cannabis duty system regulations — general

  (4) For the purpose of facilitating the implementation, application, administration and enforcement of the coordinated cannabis duty system or a rate variation or the joining of a province to the coordinated cannabis duty system, the Governor in Council may make regulations

  • (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to a specified province, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

  • (b) prescribing rules related to the movement of cannabis products between provinces, including a duty, tax or refund in respect of such movement;

  • (c) providing for refunds relating to the application of that system in relation to a specified province;

  • (d) adapting any provision of this Act or of the regulations made under this Act to the coordinated cannabis duty system or modifying any provision of this Act or those regulations to adapt it to the coordinated cannabis duty system;

  • (e) defining, for the purposes of this Act or the regulations made under this Act, or any provision of this Act or those regulations, in its application to the coordinated cannabis duty system, words or expressions used in this Act or those regulations including words or expressions defined in a provision of this Act or those regulations;

  • (f) providing that a provision of this Act or of the regulations made under this Act, or a part of such a provision, does not apply to the coordinated cannabis duty system;

  • (g) prescribing compliance measures, including penalties and anti-avoidance rules; and

  • (h) generally in respect of the application of that system in relation to a province.

• Marginal note:Conflict

  (5) If a regulation made under this Act in respect of the coordinated cannabis duty system states that it applies despite any provision of this Act, in the event of a conflict between the regulation and this Act, the regulation prevails to the extent of the conflict.

Marginal note:Definition of cannabis duty system

• 304.2 (1) In this section, cannabis duty system means the system providing for the payment, collection and remittance of duty imposed under Part 4.1 and any provisions relating to duty imposed under that Part or to refunds in respect of any such duty.

• Marginal note:Transitional cannabis duty system regulations

  (2) For the purpose of facilitating the implementation, application, administration or enforcement of the cannabis duty system, the Governor in Council may make regulations adapting any provision of this Act or of the regulations made under this Act to take into account the making of regulations under the Cannabis Act or amendments to those regulations.

• Marginal note:Retroactive effect

  (3) Despite subsection 304(2), regulations made under subsection (2) may, if they so provide, be retroactive and have effect with respect to any period before they are made.

Marginal note:Definition of coordinated vaping duty system

• 304.3 (1) In this section, coordinated vaping duty system means the system providing for the payment, collection and remittance of duty imposed under any of section 158.58 and subsections 158.6(2) and 158.61(2) and any provisions relating to duty imposed under those provisions or to refunds in respect of any such duty.

• Marginal note:Coordinated vaping duty system regulations — transition

  (2) The Governor in Council may make regulations, in relation to the joining of a province to the coordinated vaping duty system,

  • (a) prescribing transitional measures, including

    • (i) a tax on the inventory of vaping products held by a vaping product licensee or any other person, and

    • (ii) a duty or tax on vaping products that are delivered prior to the province joining that system; and

  • (b) generally to effect the implementation of that system in relation to the province.

• Marginal note:Coordinated vaping duty system regulations — rate variation

  (3) The Governor in Council may make regulations

  • (a) prescribing rules in respect of whether, how and when a change in the rate of duty for a specified vaping province applies (in this section any such change in the rate of duty is referred to as a “rate variation”), including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

  • (b) if a manner of determining an amount of duty is to be prescribed in relation to the coordinated vaping duty system,

    • (i) specifying the circumstances or conditions under which a change in the manner applies, and

    • (ii) prescribing transitional measures in respect of a change in the manner, including

      • (A) a tax on the inventory of vaping products held by a vaping product licensee or any other person, and

      • (B) a duty or tax on vaping products that are delivered prior to the change; and

  • (c) prescribing amounts and rates to be used to determine any refund that relates to, or is affected by, the coordinated vaping duty system, excluding amounts that would otherwise be included in determining any such refund, and specifying circumstances under which any such refund shall not be paid or made.

• Marginal note:Coordinated vaping duty system regulations — general

  (4) For the purpose of facilitating the implementation, application, administration and enforcement of the coordinated vaping duty system or a rate variation or the joining of a province to the coordinated vaping duty system, the Governor in Council may make regulations

  • (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to a specified vaping province, including rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when duty is imposed or payable and when duty is required to be reported and accounted for;

  • (b) prescribing rules related to the movement of vaping products between provinces, including a duty, tax or refund in respect of such movement;

  • (c) providing for refunds relating to the application of that system in relation to a specified vaping province;

  • (d) adapting any provision of this Act or of the regulations made under this Act to the coordinated vaping duty system or modifying any provision of this Act or those regulations to adapt it to the coordinated vaping duty system;

  • (e) defining, for the purposes of this Act or the regulations made under this Act, or any provision of this Act or those regulations, in its application to the coordinated vaping duty system, words or expressions used in this Act or those regulations including words or expressions defined in a provision of this Act or those regulations;

  • (f) providing that a provision of this Act or of the regulations made under this Act, or a part of such a provision, does not apply to the coordinated vaping duty system;

  • (g) prescribing compliance measures, including penalties and anti-avoidance rules; and

  • (h) generally in respect of the application of that system in relation to a province.

• Marginal note:Conflict

  (5) If a regulation made under this Act in respect of the coordinated vaping duty system states that it applies despite any provision of this Act, in the event of a conflict between the regulation and this Act, the regulation prevails to the extent of the conflict.

PART 8Transitional Provisions and Consequential, Related and Coordinating Amendments

Transitional Provisions

Marginal note:Meaning of implementation date

305 In sections 306 to 320, implementation date means the day on which Parts 3 and 4 come into force.

Marginal note:Transitional treatment of duties on packaged spirits

306 The following rules apply to packaged spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was imposed under that Act or levied under the Customs Tariff but that had not become payable before the implementation date:

• (a) as of that day, the duty is relieved;

• (b) as of that day, the Excise Act ceases to apply in respect of the spirits;

• (c) in the case of imported packaged spirits that have not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of them as though they were imported on that day; and

• (d) in the case of any other packaged spirits, this Act applies in respect of them as though

  • (i) they were produced and packaged in Canada on that day by the person having possession of them immediately before that day and the person were permitted under this Act to produce and package them, and

  • (ii) if the spirits are in the possession of a duty free shop or an accredited representative or delivered as ships’ stores in accordance with the Ships’ Stores Regulations, they had been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(1)(a) on that day.

Marginal note:Transitional treatment of duties on bulk spirits

• 307 (1) The following rules apply to bulk spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was imposed under that Act or levied under the Customs Tariff but that had not become payable before the implementation date:

  • (a) as of that day, the duty is relieved;

  • (b) as of that day, the Excise Act ceases to apply in respect of the spirits;

  • (c) in the case of imported bulk spirits that have not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of them as though they were imported on that day; and

  • (d) in the case of any other bulk spirits, this Act applies in respect of them as though they were produced in Canada on that day by the person having possession of them immediately before that day.

• Marginal note:Transitional treatment of bulk spirits imported for bottling or blending

  (2) The following rules apply to bulk spirits on which a duty, at a rate determined by the application of section 1 of Part I of the schedule to the Excise Act, was levied under the Customs Tariff and remitted under the Distilled Spirits for Bottling in Bond Remission Order or the Imported Spirits for Blending Remission Order before the implementation date:

  • (a) as of that day, the duty imposed on the spirits under subsection 135(1) of the Excise Act when they were entered into a distillery is relieved;

  • (b) as of that day, the Excise Act ceases to apply in respect of the spirits; and

  • (c) this Act applies in respect of them as though they were produced in Canada on that day by the person having possession of them immediately before that day.

Marginal note:Transitional treatment of excise taxes on wine

308 The following rules apply to wine on which tax was imposed under section 27 of the Excise Tax Act but had not become payable before the implementation date:

• (a) as of that day, the tax is relieved;

• (b) as of that day, Parts III, VI and VII of the Excise Tax Act cease to apply in respect of the wine;

• (c) in the case of imported wine that has not been released under the Customs Act, this Act, the Customs Act and the Customs Tariff apply in respect of the wine as though it were imported on that day;

• (d) in the case of bulk wine to which paragraph (c) does not apply, this Act applies in respect of it as though it were produced in Canada on that day

  • (i) if the wine is located in a ferment-on-premises facility or at the residence of an individual, by the individual who owned the wine immediately before that day, or

  • (ii) in any other case, by the person having possession of it immediately before that day; and

• (e) in the case of wine to which neither paragraph (c) nor (d) apply, this Act applies in respect of it as though

  • (i) it were produced and packaged in Canada on that day by the person having possession of it immediately before that day and the person were permitted under this Act to produce and package it, and

  • (ii) in the case of wine in the possession of a duty free shop or an accredited representative or delivered as ships’ stores in accordance with the Ships’ Stores Regulations, it had been entered into an excise warehouse and then removed from the warehouse in accordance with paragraph 147(1)(a) on that day.