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Budget Implementation Act, 2018, No. 1 (S.C. 2018, c. 12)

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

  •  (1) The definitions container, excise stamp, non-duty-paid, stamped and take for use in section 2 of the Excise Act, 2001 are replaced by the following:

    container

    container, in respect of a tobacco product or a cannabis product, means a wrapper, package, carton, box, crate, bottle, vial or other container that contains the tobacco product or cannabis product. (contenant)

    excise stamp

    excise stamp means a tobacco excise stamp or a cannabis excise stamp. (timbre d’accise)

    non-duty-paid

    non-duty-paid, in respect of packaged alcohol or a cannabis product, means that duty (other than special duty in the case of alcohol) has not been paid on the alcohol or cannabis product. (non acquitté)

    stamped

    stamped means

    • (a) in respect of a tobacco product, that a tobacco excise stamp, and all prescribed information in a prescribed format in respect of the tobacco product, are stamped, impressed, printed or marked on, indented into or affixed to the tobacco product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the tobacco product; and

    • (b) in respect of a cannabis product, that a cannabis excise stamp, and all prescribed information in a prescribed format in respect of the cannabis product, are stamped, impressed, printed or marked on, indented into or affixed to the cannabis product or its container in the prescribed manner to indicate that duty has been paid on the cannabis product. (estampillé)

    take for use

    take for use means

    • (a) in respect of alcohol, to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol; and

    • (b) in respect of a cannabis product, to consume, analyze or destroy the cannabis product. (utilisation pour soi)

  • (2) Paragraph (a) of the definition packaged in section 2 of the Act is replaced by the following:

    • (a) in respect of raw leaf tobacco, a tobacco product or a cannabis product, packaged in a prescribed package; or

  • (3) The definition produce in section 2 of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

    • (c) in respect of a cannabis product, has the same meaning as in subsection 2(1) of the Cannabis Act but also includes packaging the cannabis product. (production)

  • (4) Section 2 of the Act is amended by adding the following in alphabetical order:

    additional cannabis duty

    additional cannabis duty means a duty imposed under section 158.2 or 158.22. (droit additionnel sur le cannabis)

    cannabis

    cannabis has the same meaning as in subsection 2(1) of the Cannabis Act. (cannabis)

    cannabis duty

    cannabis duty means a duty imposed under section 158.19 or 158.21. (droit sur le cannabis)

    cannabis excise stamp

    cannabis excise stamp means a stamp that is issued by the Minister under subsection 158.03(1) and that has not been cancelled under section 158.07. (timbre d’accise de cannabis)

    cannabis licensee

    cannabis licensee means a person that holds a cannabis licence issued under section 14. (titulaire de licence de cannabis)

    cannabis plant

    cannabis plant has the same meaning as in subsection 2(1) of the Cannabis Act. (plante de cannabis)

    cannabis product

    cannabis product means

    • (a) a product that is cannabis but that is not industrial hemp produced or imported in accordance with the Cannabis Act or the Industrial Hemp Regulations,

    • (b) a product that is an industrial hemp by-product,

    • (c) anything that is made with or contains a product described in paragraph (a) or (b), or

    • (d) a prescribed substance, material or thing,

    but does not include a prescribed substance, material or thing. (produit du cannabis)

    dutiable amount

    dutiable amount, in respect of a cannabis product, means

    • (a) if paragraph (b) does not apply, the amount determined by the formula

      A × [100%/(100% + B + C)]

      where

      A
      is the total of the following amounts that the purchaser is liable to pay to the vendor by reason of, or in respect of, the sale of the cannabis product:
      • (i) the consideration, as determined for the purposes of Part IX of the Excise Tax Act, for the cannabis product,

      • (ii) any additional consideration, as determined for the purposes of that Part, for the container in which the cannabis product is contained, and

      • (iii) any amount of consideration, as determined for the purposes of that Part, that is in addition to the amounts referred to in subparagraphs (i) and (ii), whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter,

      B
      is the percentage set out in section 2 of Schedule 7, and
      C
      is
      • (i) if additional cannabis duty in respect of a specified province is imposed on the cannabis product, the prescribed percentage in respect of the specified province, or

      • (ii) in any other case, 0%; and

    • (b) in prescribed circumstances, the amount determined in prescribed manner. (somme passible de droits)

    flowering material

    flowering material means the whole or any part (other than viable seeds) of an inflorescence of a cannabis plant at any stage of development, including the infructescence stage of development. (matière florifère)

    industrial hemp

    industrial hemp means cannabis that is industrial hemp for the purposes of the Cannabis Act or the Industrial Hemp Regulations. (chanvre industriel)

    industrial hemp by-product

    industrial hemp by-product means flowering material (other than viable achenes) or non-flowering material that has been removed or separated from an industrial hemp plant and that has not

    • (a) been disposed of by retting or by otherwise rendering it into a condition such that it cannot be used for any purpose not permitted under the Controlled Drugs and Substances Act; or

    • (b) been disposed of in a similar manner under the Cannabis Act. (sous-produit de chanvre industriel)

    industrial hemp grower

    industrial hemp grower means a person that holds a licence or permit under the Controlled Drugs and Substances Act or the Cannabis Act authorizing the person to produce industrial hemp plants. (producteur de chanvre industriel)

    industrial hemp plant

    industrial hemp plant means a cannabis plant, including a seedling, that is industrial hemp. (plante de chanvre industriel)

    low-THC cannabis product

    low-THC cannabis product means a cannabis product

    • (a) consisting entirely of cannabis of a class referred to in any of items 1 to 3 of Schedule 4 to the Cannabis Act; and

    • (b) any part of which does not have a maximum yield of more than 0.3% THC w/w, taking into account the potential to convert delta-9-tetrahydrocannabinolic acid into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)

    non-flowering material

    non-flowering material means any part of a cannabis plant other than flowering material, viable seeds and a part of the plant referred to in Schedule 2 to the Cannabis Act. (matière non florifère)

    prescription cannabis drug

    prescription cannabis drug means a cannabis product that is a drug that has been assigned a drug identification number under the Food and Drug Regulations, other than

    specified province

    specified province means a prescribed province. (province déterminée)

    THC

    THC means Δ9-tetrahydrocannabinol ((6aR, 10aR)-6a, 7,8,10a-tetrahydro-6,6,9-trimethyl-3-pentyl-6H-dibenzo [b,d] pyran-1-ol). (THC)

    tobacco excise stamp

    tobacco excise stamp means a stamp that is issued by the Minister under subsection 25.1(1) and that has not been cancelled under section 25.5. (timbre d’accise de tabac)

    vegetative cannabis plant

    vegetative cannabis plant means a cannabis plant, including a seedling, that has not yet produced reproductive structures, including flowers, fruits or seeds. (plante de cannabis à l’état végétatif)

    viable seed

    viable seed means a viable seed of a cannabis plant that is not an industrial hemp plant. (graine viable)

 
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