Regulations Respecting Excise Licences and Registrations

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 or a tobacco licence is an amount of not less than $5,000 and

• (a) in the case of a spirits licence, be sufficient to ensure payment of all amounts in respect of bulk spirits referred to in sections 104 to 112 of the Act for which the licensee is or will be responsible up to a maximum amount of $2 million; and

• (b) in the case of a tobacco 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.

(2) The types of security that are acceptable for the purposes of paragraph 23(3)(b) of the Act are

• (a) cash;

• (b) a certified cheque;

• (c) a transferable bond issued by the Government of Canada; or

• (d) a bond issued by

  • (i) an entity that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business in Canada and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as an entity whose bonds may be accepted by the Government of Canada,

  • (ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Act,

  • (iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum permitted by the statutes under which those institutions were established,

  • (iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or

  • (v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.