Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations

4.1 (1) Subject to subsections (2) to (4), the amount of security for the purpose of subsection 25.1(3) of the Act is the greater of

• (a) the amount equal to one half of the amount of duty that would be imposed under section 42 of the Act on tobacco products if they were stamped with

  • (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

• (b) $5,000.

(2) Subject to subsection (3), if the amount referred to in paragraph (1)(a) is greater than $5 million, the amount of security for the purpose of subsection 25.1(3) of the Act is $5 million.

(3) If a person has provided security under paragraph 23(3)(b) of the Act in an amount that is equal to or greater than the amount of security determined in accordance with subsection (1) or (2), as the case may be, the amount of security for the purpose of subsection 25.1(3) of the Act is nil.

(4) If a person has provided security under paragraph 23(3)(b) of the Act in an amount that is less than the amount of security determined in accordance with subsection (1) or (2), as the case may be, the amount of security for the purpose of subsection 25.1(3) of the Act is the difference between the amount of security determined in accordance with subsection (1) or (2), as the case may be, and the amount of security provided by the person under paragraph 23(3)(b) of the Act.