Excise Act, 2001

Marginal note:Duty relieved — prescribed tobacco product

• 58 (1) The special duty imposed under section 56 is relieved on a tobacco product of a particular brand if

  • (a) the tobacco product of that brand is prescribed;

  • (b) during the three-year period before the year in which the tobacco product of that brand is exported, the tobacco product of that brand was not sold in Canada, other than in a duty free shop, except in quantities not significantly greater than the minimum quantities sufficient for the purposes of registering the trademark for that brand; and

  • (c) during any year before the three-year period referred to in paragraph (b), sales in Canada of the product of that brand never exceeded

    • (i) 0.5% of total sales in Canada of similar products, or

    • (ii) if another percentage that is less than 0.5% is prescribed for the purposes of this subsection, that percentage of total sales in Canada of similar products.

• Marginal note:Duty relieved — prescribed cigarettes

  (2) The special duty imposed under section 56 is relieved on cigarettes of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada if

  • (a) cigarettes of the particular type or formulation exported under that brand are prescribed; and

  • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

• Marginal note:Distinguishing different cigarettes

  (3) For the purpose of subsection (2), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.