Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)
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Assented to 2018-06-21
PART 3Amendments to the Excise Act, 2001 (Cannabis Taxation), the Excise Tax Act and Other Related Texts (continued)
2002, c. 22Excise Act, 2001 (continued)
93 Schedule 7 to the Act is replaced by the Schedule 7 set out in Schedule 1 to this Act.
94 The Act is amended by replacing “excise stamp” with “tobacco excise stamp”, with any grammatical changes that the circumstances require, in the following provisions:
(a) subsections 25.1(2) to (5);
(b) sections 25.2 to 25.4; and
(c) paragraph 25.5(a).
R.S., c. E-15Excise Tax Act
95 The definition excisable goods in subsection 123(1) of the Excise Tax Act is replaced by the following:
- excisable goods
excisable goods means beer or malt liquor (within the meaning assigned by section 4 of the Excise Act) and spirits, wine, tobacco products and cannabis products (within the meaning assigned by section 2 of the Excise Act, 2001); (produit soumis à l’accise)
96 The portion of section 4 of Part VI of Schedule V to the Act before paragraph (a) is replaced by the following:
4 A supply of tangible personal property (other than excisable goods) made by way of sale by a public sector body where
97 Section 1 of Part III of Schedule VI to the Act is amended by adding the following after paragraph (a):
(b) cannabis products, as defined in section 2 of the Excise Act, 2001;
98 (1) Section 2 of Part IV of Schedule VI to the French version of the Act is replaced by the following:
2 La fourniture de graines et de semences (autres que les graines viables qui constituent du cannabis au sens du paragraphe 2(1) de la Loi sur le cannabis) à leur état naturel, traitées pour l’ensemencement ou irradiées pour l’entreposage, de foin, de produits d’ensilage ou d’autres produits de fourrage, fournis en quantités plus importantes que celles qui sont habituellement vendues ou offertes pour vente aux consommateurs, et servant habituellement d’aliments pour la consommation humaine ou animale ou à la production de tels aliments, à l’exclusion des graines, des semences et des mélanges de celles-ci emballés, préparés ou vendus pour servir de nourriture aux oiseaux sauvages ou aux animaux domestiques.
(2) Paragraph 2(a) of Part IV of Schedule VI to the English version of the Act is replaced by the following:
(a) grains or seeds (other than viable seeds that are cannabis as defined in subsection 2(1) of the Cannabis Act) in their natural state, treated for seeding purposes or irradiated for storage purposes,
99 Paragraphs 3.1(b) and (c) of Part IV of Schedule VI to the Act are replaced by the following:
(b) in the case of viable grain or seeds, they are included in the definition industrial hemp in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act or they are industrial hemp for the purposes of the Cannabis Act; and
(c) the supply is made in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, if applicable.
100 Paragraphs 12(b) and (c) of Schedule VII to the Act are replaced by the following:
(b) in the case of viable grain or seeds, they are included in the definition industrial hemp in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act or they are industrial hemp for the purposes of the Cannabis Act; and
(c) the importation is in accordance with the Controlled Drugs and Substances Act or the Cannabis Act, if applicable.
101 Section 6 of Part I of Schedule X to the Act is replaced by the following:
6 Property (other than advertising matter or excisable goods) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.
Amendments to Various Regulations
SI/85-181Postal Imports Remission Order
102 (1) Paragraph (a) of the definition goods in section 2 of the Postal Imports Remission Order is replaced by the following:
(a) alcoholic beverages, cannabis products, cigars, cigarettes and manufactured tobacco;
(2) Section 2 of the Order is amended by adding the following in alphabetical order:
- cannabis product
cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)
SI/85-182; SI/92-128, s. 2(F)Courier Imports Remission Order
103 (1) Paragraph (a) of the definition goods in section 2 of the Courier Imports Remission Order is replaced by the following:
(a) alcoholic beverages, cannabis products, cigars, cigarettes and manufactured tobacco;
(2) Section 2 of the Order is amended by adding the following in alphabetical order:
- cannabis product
cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)
SOR/91-37Public Service Body Rebate (GST/HST) Regulations
104 Paragraph 4(1)(e) of the Public Service Body Rebate (GST/HST) Regulations is replaced by the following:
(e) excisable goods that are acquired by the particular person for the purpose of making a supply of the excisable goods for consideration that is not included as part of the consideration for a meal supplied together with the excisable goods, except where tax is payable in respect of the supply by the particular person of the excisable goods;
SOR/2003-115Regulations Respecting Excise Licences and Registrations
105 (1) The portion of subsection 5(1) of the Regulations Respecting Excise Licences and Registrations before paragraph (a) is replaced by the following:
5 (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a tobacco licence or a cannabis licence is an amount of not less than $5,000 and
(2) Paragraph 5(1)(b) of the Regulations is replaced by the following:
(b) in the case of a tobacco licence or a cannabis licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million.
SOR/2003-203Regulations Respecting the Possession of Tobacco Products That Are Not Stamped
106 The title of the Regulations Respecting the Possession of Tobacco Products That Are Not Stamped is replaced by the following:
107 The Regulations are amended by adding the following after section 1:
1.1 For the purposes of subparagraph 158.11(3)(a)(i) of the Excise Act, 2001, a person may possess a cannabis product that is not stamped if the person has in their possession documentation that provides evidence that the person is transporting the cannabis product on behalf of a cannabis licensee or, in the case of an industrial hemp by-product, an industrial hemp grower.
1.2 For the purposes of subparagraph 158.11(3)(a)(ii) of the Excise Act, 2001, a person may possess a cannabis product that is not stamped if the person has in their possession documentation that provides evidence that
(a) the person is sterilizing the cannabis product on behalf of a cannabis licensee;
(b) the cannabis licensee owns the cannabis product throughout the period during which the person is in possession of it; and
(c) the cannabis product is to be returned to the premises of the cannabis licensee as soon as possible after the sterilization of the cannabis product.
SOR/2003-288Stamping and Marking of Tobacco Products Regulations
108 The title of the Stamping and Marking of Tobacco Products Regulations is replaced by the following:
109 Section 2 of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) a cannabis product is packaged in a prescribed package when it is packaged in the smallest package — including any outer wrapper, package, box or other container — in which it is sold to the consumer.
110 Subsection 4(2) of the Regulations is replaced by the following:
(2) For the purposes of paragraph 25.3(2)(d) of the Act, a prescribed person is a person who transports a tobacco excise stamp on behalf of a person described in paragraph 25.3(2)(a) or (b) of the Act.
(3) For the purposes of paragraph 158.05(2)(c) of the Act, a prescribed person is a person who transports a cannabis excise stamp on behalf of a person described in paragraph 158.05(2)(a) or (b) of the Act.
111 Subparagraphs 4.1(1)(a)(i) and (ii) of the Regulations are replaced by the following:
(i) the unaffixed tobacco excise stamps in the applicant’s possession at the time of application, and
(ii) the tobacco excise stamps to be issued in respect of the application; and
112 The portion of section 4.2 of the Regulations before paragraph (a) is replaced by the following:
4.2 For the purposes of the definition stamped in section 2 of the Act and subsections 25.3(1) and 158.05(1) of the Act, the prescribed manner of affixing an excise stamp to a package is by affixing the stamp
SOR/2011-177Tobacco Products Labelling Regulations (Cigarettes and Little Cigars)
113 The Tobacco Products Labelling Regulations (Cigarettes and Little Cigars) are amended by replacing “excise stamp” with “tobacco excise stamp” in the following provisions:
(a) paragraph 7(a); and
(b) section 11.
Consequential Amendments
R.S., c. C-46Criminal Code
114 (1) Subparagraph (g)(i) of the definition offence in section 183 of the Criminal Code is replaced by the following:
(i) section 214 (unlawful production, sale, etc., of tobacco, alcohol or cannabis),
(2) Paragraph (g) of the definition offence in section 183 of the Act is amended by adding the following after subparagraph (iii):
(iii.1) section 218.1 (unlawful possession, sale, etc., of unstamped cannabis),
R.S., c. 1 (2nd Supp.)Customs Act
115 (1) The definition excise stamp in subsection 2(1) of the Customs Act is replaced by the following:
- excise stamp
excise stamp has the same meaning as in section 2 of the Excise Act, 2001; (timbre d’accise)
(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
- cannabis product
cannabis product has the same meaning as in section 2 of the Excise Act, 2001; (produit du cannabis)
116 Subsection 109.2(2) of the Act is replaced by the following:
Marginal note:Contravention relating to tobacco, cannabis and designated goods
(2) Every person that
(a) removes tobacco products, cannabis products or designated goods or causes tobacco products, cannabis products or designated goods to be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop in contravention of this Act or the Customs Tariff or the regulations made under those Acts, or
(b) sells or uses tobacco products or designated goods designated as ships’ stores in contravention of this Act or the Customs Tariff or the regulations made under those Acts,
is liable to a penalty equal to double the total of the duties that would be payable on like tobacco products, cannabis products or designated goods released in like condition at the rates of duties applicable to like tobacco products, cannabis products or designated goods at the time the penalty is assessed, or to such lesser amount as the Minister may direct.
Application
117 (1) In applying sections 14 and 23 of the Excise Act, 2001 in respect of a cannabis licence that is issued to a person before commencement day, the following rules apply beginning on the day on which the cannabis licence is issued until commencement day:
(a) subsection 14(1.2) of that Act, as enacted by section 71, is to be read as follows:
(1.2) A cannabis licence issued to a person shall not have effect before a licence or permit issued to the person under subsection 62(1) of the Cannabis Act or a licence issued to the person under section 35 of the Access to Cannabis for Medical Purposes Regulations comes into effect.
(b) paragraph 23(2.1)(a.1) of that Act, as enacted by subsection 72(1), is to be read as follows:
(a.1) in the case of a cannabis licence, a licence or permit issued to the person under subsection 62(1) of the Cannabis Act or a licence issued to the person under section 35 of the Access to Cannabis for Medical Purposes Regulations is amended, suspended or revoked; or
(2) Section 158.13 of the Excise Act, 2001, as enacted by section 73, and section 84 only apply to cannabis products that are entered into the duty-paid market on or after commencement day, including cannabis products that are delivered at any time to a purchaser for sale or distribution on or after commencement day.
(3) Sections 158.19 and 158.2 of the Excise Act, 2001, as enacted by section 73, only apply to packaged cannabis products that are delivered to a purchaser on or after commencement day.
(4) Sections 158.21 and 158.22 of the Excise Act, 2001, as enacted by section 73, only apply to cannabis products that are imported into Canada or released (as defined in the Customs Act) on or after commencement day.
(5) Section 158.25 of the Excise Act, 2001, as enacted by section 73, only applies to cannabis products that are taken for use on or after commencement day.
(6) Section 158.26 of the Excise Act, 2001, as enacted by section 73, only applies to cannabis products that, on or after commencement day, cannot be accounted for as being in the possession of a cannabis licensee or in the possession of a person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a) of that Act, as enacted by section 73.
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