Excise Act (R.S.C., 1985, c. E-14)

Returns

Marginal note:Every brewer to make returns

175 Every person who carries on business as a brewer shall render to the collector a just and true account in writing, extracted from the books kept as required by this Act, and the account shall exhibit such particulars as may be required by ministerial regulations.

Offences and Punishment

Marginal note:Brewing without a licence

• 176 (1) Every person who, without having a licence under this Act then in force,

  • (a) makes or brews any beer or malt liquor, except beer that is made or brewed for personal or family consumption or to be given away without charge and that is not for sale or commercial use, or

  • (b) has in his possession, whether the owner thereof or not, any beer or malt liquor that has not been made or brewed, distributed or disposed of in accordance with this Act,

  is guilty of an indictable offence and liable

  • (c) for a first offence, to a fine of not more than one hundred dollars and not less than twenty-five dollars, and in default of payment of the fine to a term of imprisonment, with or without hard labour, of not more than three months and not less than one month, and

  • (d) for each subsequent offence, to a fine of not more than two hundred and fifty dollars and not less than one hundred and fifty dollars, and in default of payment of the fine to a term of imprisonment with hard labour of not more than six months and not less than two months.

• Marginal note:Additional punishment

  (2) Every person who becomes liable to the punishment provided for in subsection (1) shall, in addition thereto, forfeit and pay for the use of Her Majesty double the amount of excise duty and licence fee that should have been paid by that person under this Act.

• Marginal note:Exception

  (3) Subsection (1) does not apply to a person who is licensed as a spirits licensee under section 14 of the Excise Act, 2001 and who produces beer solely for the purpose of distilling the beer.

Marginal note:Illegal possession of apparatus

177 Every person who has in his possession any brewing apparatus contrary to this Act shall incur, for a first offence, a fine of not more than one hundred dollars and not less than twenty-five dollars, and for each subsequent offence a fine of not more than two hundred and fifty dollars and not less than one hundred and fifty dollars and, in either case, all brewing apparatus may be seized as forfeited.

Marginal note:Penalties

• 178 (1) Every brewer who

  • (a) fails to keep any record or make any entry or return as required by ministerial regulations,

  • (b) removes beer or malt liquor from the vessels in which it is to be gauged before the quantity has been determined and assessed for duty,

  • (c) adds to the volume of beer or malt liquor after assessment of duty except under the supervision of an officer,

  • (d) evades or attempts to evade the payment of duties imposed by this Act, or any part thereof, or

  • (e) fails to comply with any of the requirements of this Act or any ministerial regulation,

  is liable to a fine of not more than five thousand dollars and not less than one thousand dollars and shall, in addition thereto, forfeit and pay for the use of Her Majesty double the amount of excise duty, if any, that should have been paid by him under this Act.

• Marginal note:Seizure

  (2) All vessels, utensils and apparatus, the property of the brewer referred to in subsection (1), used in or about the licensed brewery, and all beer, grain, malt or wort found in or about the brewery, may be seized as forfeited.

Marginal note:Sale, removal, etc.

179 Every person who sells, removes, receives or purchases or in any way aids in the sale, removal, receipt or purchase of any beer on which the duties of excise imposed by this Act have not been paid is guilty of an indictable offence and liable

• (a) for a first offence, to a fine of not more than two hundred dollars and not less than fifty dollars or to imprisonment, with or without hard labour, for a term of not more than three months and not less than one month or to both fine and imprisonment; and

• (b) for each subsequent offence, to a fine of not more than two hundred dollars and not less than one hundred dollars or to imprisonment for a term of not more than six months and not less than three months or to both fine and imprisonment.

PART IVBonded Manufacturers

Interpretation

Marginal note:Provisions additional to Part I

180 The provisions of this Part are to be construed as additional or supplemental to the provisions of Part I applicable to bonded manufacturers.

Licences

Marginal note:Manufacture in bond

181 The Governor in Council may, in his discretion, authorize the manufacture in bond of such goods as he sees fit to designate, in the manufacture or production of which spirits or other articles subject to duties of customs or excise are used, by persons licensed to that effect, subject to the provisions of this Act and to regulations made by the Governor in Council.

Marginal note:Conditions of licence

• 182 (1) A licence to carry on the manufacture in bond of a certain kind or kinds of goods to be mentioned in the application for the licence in certain premises to be therein described may be granted to any person who has complied with the requirements of this Act, if the granting of the licence has been approved by the district inspector and the person has, jointly with a guarantee company approved by the Minister, entered into a bond to Her Majesty in an amount determined by the Minister that is not less than five thousand dollars, and in such form that the proposed licensee and the guarantee company are both bound to the full amount of the bond, and every such licence shall be known as a bonded manufacturing licence.

• Marginal note:Conditions of bond

  (2) The bond entered into under subsection (1) shall be conditioned on the rendering of all accounts, inventories, statements and returns prescribed by law and the payment of all duties and penalties that the person to whom the licence is to be granted becomes liable to render or pay under this Act, and on the person faithfully complying with all the requirements of this Act according to their true intent and meaning, with regard to the accounts, inventories, statements, returns, duties and penalties, as well as to all other matters and things whatever.

Marginal note:What application for licence must contain

183 Every bonded manufacturer shall, when required, furnish the Minister with a description of all materials to be used in the manufacture of the articles he intends to produce, and whenever the ingredients or the proportions stated are such as to make an evasion of duty or loss of revenue on any of those articles possible, of which the Minister is the judge, no article shall be manufactured.

Marginal note:Fee for licence

184 A person to whom a licence for manufacturing in bond is granted shall pay to the collector of the district or excise division in which he proposes to carry on the manufacturing in bond a licence fee prescribed by the regulations.

Duties of Excise

Marginal note:Duties

185 There shall be imposed, levied and collected on the spirits used in the manufacture of goods in bond within Canada the duties of excise set out in the schedule, which duties shall be paid to the collector as provided in this Act.

Returns

Marginal note:Returns

186 Every bonded manufacturer shall render to the collector such returns as may be required by ministerial regulations.

Drawback and Remission of Duties

Marginal note:Drawbacks

• 187 (1) Every person who manufactures any goods in bond under a licence granted under this Act and who exports any of those goods, in the production of which any article has been used on which duties of customs or excise have been paid by him, is, on the production of due proof of the use and payment of duty and on proof of export, entitled to receive a drawback equal to the duties paid on the articles used in the production of the goods exported.

• Marginal note:Amount

  (2) The amount of a drawback under this section shall be determined in such manner, and the proof of the payment of the duty and export of the goods for which the drawback is claimed shall be of such nature, as are directed or required by the ministerial regulation.

Marginal note:Dutiable articles may be taken into factory

188 Every bonded manufacturer may receive into the premises for which his licence is granted, as into a bonding warehouse, and, except as is otherwise provided in this Act, without payment of the duty thereon, all such spirits and other articles as are commonly used in the manufacture of the goods for which the licence is granted, on a permit for that purpose granted by the collector, in such form, and on such bond being entered into, and on such conditions as are prescribed in any order in council or ministerial regulation, but no less quantity of those spirits or other articles shall be so received at any time than might be taken out of bond for consumption.

Supervision

Marginal note:Duty on quantities deficient

• 189 (1) Where at any time the quantity of any dutiable article found by an inspector in stock is less than the quantity that, with the quantity lawfully taken for use and accounted for, would be equivalent to the whole quantity of that article taken into the manufactory, the bonded manufacturer shall forthwith pay the amount of duty for which the quantity so deficient would have been liable if entered for consumption from a regular bonding warehouse, and the duty so collected shall be held to be a duty of excise and shall be collected and accounted for as such.

• Marginal note:Abatement

  (2) An abatement, not exceeding one per cent of the quantity of any dutiable article taken for use, may, in accordance with ministerial regulations, be allowed on deficiencies found at stock-taking in any licensed bonded manufactory or licensed pharmacist’s premises.

Definition of standard of production

• 190 (1) In this section, standard of production means that from every litre or 0.78924 kg of absolute ethyl alcohol taken for use there shall be produced therefrom not less than one-half kilogram (0.5 kg) of acetic acid.

• Marginal note:Duty payable

  (2) Where, at any time in any bonded manufactory licensed to manufacture vinegar, it is ascertained by stock-taking that the standard of production established by this Act has not been reached, the duty on the quantity of spirits equivalent to the deficiency so determined shall become due and payable forthwith.

Marginal note:Minimum quantity

191 No less quantity of goods manufactured in bond shall be ex-warehoused for consumption by one entry than would be liable to a duty of twenty dollars.

Offences and Punishment

Marginal note:Removing spirits or specially denatured alcohol

192 Every person who, without the specific authority of the Minister, removes any spirits or specially denatured alcohol to be used for any chemical or manufacturing purpose from any bonded manufactory, and every person who receives any of those spirits removed in contravention of this section, shall incur a fine not exceeding two hundred dollars for the first offence and five hundred dollars for each subsequent offence.

Regulations

Marginal note:Regulations

193 The Governor in Council may make regulations respecting the sale of spirits to be used for any chemical or manufacturing purposes not otherwise provided for in this Act.

Marginal note:Generally

194 The Governor in Council may make such regulations as to him seem necessary for carrying into effect and enforcing the provisions of this Act respecting the manufacture of goods in bond, or the warehousing of those goods when manufactured or restricting the sale of those goods, and may, by those regulations, require any bond or any oath or solemn affirmation that he deems requisite for those purposes.

PART VTobacco and Cigars and Manufacturers Thereof

Interpretation

Marginal note:Provisions additional to Part I

195 The provisions of this Part are to be construed as additional or supplemental to the provisions of Part I applicable to tobacco and cigars and the manufacturers thereof.

Licences

Marginal note:Conditions of licence

• 196 (1) A licence to carry on the trade or business of a tobacco or cigar manufacturer may be granted to any person who has complied with the requirements of this Act, if the granting of the licence has been approved by the district inspector and the person has, jointly with a guarantee company approved by the Minister, entered into a bond to Her Majesty in an amount determined by the Minister that is not less than one thousand dollars, and in such form that the proposed licensee and the guarantee company are both bound to the full amount of the bond.

• Marginal note:Conditions of bond

  (2) The bond entered into under subsection (1) shall be conditioned on the rendering of all accounts, inventories, statements and returns prescribed by law and the payment of all duties and penalties that the person to whom the licence is to be granted becomes liable to render or pay under this Act, and on the person faithfully complying with all the requirements of the law relating to the manufacture and warehousing of tobacco or cigars according to their true intent and meaning, with regard to the accounts, inventories, statements, returns, duties and penalties, as well as to all other matters and things whatever.

Marginal note:Limitation on business to be carried on

197 No manufacturer of tobacco or cigars shall carry on in any premises in which he is licensed to manufacture tobacco or cigars any business that would significantly impede the efficient administration of this Act and any regulations made under this Act in relation to the manufacture of tobacco or cigars therein.

Marginal note:Fee for licence

198 A person to whom a licence for the manufacture of tobacco or cigars is granted shall pay to the collector of the district or excise division in which he proposes to carry on that manufacturing a licence fee prescribed by the regulations.

Marginal note:Manufactories to be numbered and registered

• 199 (1) Every collector shall cause the several manufactories of tobacco and cigars in his excise division to be numbered in accordance with a register kept by the Minister, and the registered number shall be issued by the Minister and shall not thereafter be changed.

• Marginal note:Tobacco manufactories

  (2) The registered numbers for tobacco manufactories shall be separate and distinct from those issued to cigar manufacturers.