Excise Duties on Cannabis Regulations (SOR/2019-78)

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Excise Act, 2001. (Loi)

base amount

base amount means, in respect of a cannabis product and a listed specified province,

• (a) if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase, the fair market value of the cannabis product; and

• (b) in any other case, the amount determined by the formula

  [(A − B) − C] × [100%/(100% + D)]

  where

  A

  is the total determined for A in paragraph (a) of the definition dutiable amount in section 2 of the Act in respect of the cannabis product,

  B

  is the total determined under section 1 of Schedule 7 to the Act in respect of the cannabis product,

  C

  is

  • (i) if the listed specified province is Ontario, the amount determined under section 1 of Schedule 1 in respect of the cannabis product,

  • (ii) if the listed specified province is New Brunswick, the amount determined under section 1 of Schedule 4 in respect of the cannabis product,

  • (iii) if the listed specified province is Prince Edward Island, the amount determined under section 1 of Schedule 6 in respect of the cannabis product,

  • (iv) if the listed specified province is Saskatchewan, the amount determined under section 1 of Schedule 7 in respect of the cannabis product,

  • (v) if the listed specified province is Alberta, the amount determined under section 1 of Schedule 8 in respect of the cannabis product,

  • (vi) if the listed specified province is Newfoundland and Labrador, the amount determined under section 1 of Schedule 9 in respect of the cannabis product, and

  • (vii) if the listed specified province is Nunavut, the amount determined under section 1 of Schedule 12 in respect of the cannabis product, and

  D

  is

  • (i) if the listed specified province is Ontario, the percentage set out in section 5 of Schedule 1,

  • (ii) if the listed specified province is New Brunswick, the percentage set out in section 5 of Schedule 4,

  • (iii) if the listed specified province is Prince Edward Island, the percentage set out in section 5 of Schedule 6,

  • (iv) if the listed specified province is Saskatchewan, the percentage set out in section 5 of Schedule 7,

  • (v) if the listed specified province is Alberta, the percentage set out in section 5 of Schedule 8,

  • (vi) if the listed specified province is Newfoundland and Labrador, the percentage set out in section 5 of Schedule 9, and

  • (vii) if the listed specified province is Nunavut, the percentage set out in section 5 of Schedule 12. (montant de base)

listed specified province

listed specified province means any of the following specified provinces:

• (a) Ontario;

• (b) New Brunswick;

• (c) Prince Edward Island;

• (d) Saskatchewan;

• (e) Alberta;

• (f) Newfoundland and Labrador; and

• (g) Nunavut. (province déterminée désignée)

Cannabis Product Definition

Marginal note:Cannabis product — exclusions

2 For the purposes of the definition cannabis product in section 2 of the Act, the following substances, materials or things are not included:

• (a) a test kit, as defined in subsection 1(2) of the Cannabis Regulations, for which a registration number has been issued, but not cancelled, under those Regulations; and

• (b) a reference standard, being a highly purified and standardized form of a given substance used as a measurement base to confirm the identity, strength, quality or purity of a substance,

  • (i) that contains a known quantity or concentration of a chemical component of cannabis, such as cannabidiol, cannabidiolic acid, THCA or THC,

  • (ii) that is designed to be used during the course of a chemical or analytical procedure for a medical, laboratory, industrial, educational, law administration or enforcement, or research purpose, and

  • (iii) that is not intended to be consumed or administered.

Additional Cannabis Duty

Marginal note:Dutiable amount — prescribed percentage

• 3 (1) For the purposes of subparagraph (i) of the description of C in paragraph (a) of the definition dutiable amount in section 2 of the Act, the prescribed percentage in respect of a specified province is

  • (a) in the case of Ontario, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 1, and

    • (ii) the percentage set out in section 5 of Schedule 1;

  • (b) in the case of Quebec, the percentage set out in paragraph 2(a) of Schedule 2;

  • (c) in the case of Nova Scotia, the percentage set out in paragraph 2(a) of Schedule 3;

  • (d) in the case of New Brunswick, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 4, and

    • (ii) the percentage set out in section 5 of Schedule 4;

  • (e) in the case of British Columbia, the percentage set out in paragraph 2(a) of Schedule 5;

  • (f) in the case of Prince Edward Island, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 6, and

    • (ii) the percentage set out in section 5 of Schedule 6;

  • (g) in the case of Saskatchewan, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 7, and

    • (ii) the percentage set out in section 5 of Schedule 7;

  • (h) in the case of Alberta, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 8, and

    • (ii) the percentage set out in section 5 of Schedule 8;

  • (i) in the case of Newfoundland and Labrador, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 9, and

    • (ii) the percentage set out in section 5 of Schedule 9;

  • (j) in the case of Yukon, the percentage set out in paragraph 2(a) of Schedule 10;

  • (k) in the case of the Northwest Territories, the percentage set out in paragraph 2(a) of Schedule 11; and

  • (l) in the case of Nunavut, the total of

    • (i) the percentage set out in paragraph 2(a) of Schedule 12, and

    • (ii) the percentage set out in section 5 of Schedule 12.

• Marginal note:Dutiable amount — prescribed circumstances

  (2) For the purposes of paragraph (b) of the definition dutiable amount in section 2 of the Act, if a cannabis product is delivered or made available in a specified province to a person that obtains it otherwise than by means of a purchase and if an amount in respect of the cannabis product is to be determined under any of sections 2 and 6 of Schedules 1, 4, 6 to 9 and 12 and section 2 of Schedules 2, 3, 5, 10 and 11, the dutiable amount of the cannabis product is equal to the fair market value of the cannabis product.

Marginal note:Specified province

4 For the purposes of the definition specified province in section 2 of the Act, the following provinces are prescribed:

• (a) Ontario;

• (b) Quebec;

• (c) Nova Scotia;

• (d) New Brunswick;

• (e) British Columbia;

• (f) Prince Edward Island;

• (g) Saskatchewan;

• (h) Alberta;

• (i) Newfoundland and Labrador;

• (j) Yukon;

• (k) the Northwest Territories; and

• (l) Nunavut.

Marginal note:Subsections 158.2(1) and 158.27(3) of Act — prescribed circumstances

• 5 (1) For the purposes of subsections 158.2(1) and 158.27(3) of the Act, a duty in respect of a specified province is imposed under those subsections on cannabis products produced in Canada if the cannabis products are for consumption, use or sale to consumers in the specified province.

• Marginal note:Subsections 158.2(1) and 158.27(3) of Act — calculation of duty

  (2) For the purposes of subsections 158.2(1) and 158.27(3) of the Act, the amount of duty imposed under those subsections in respect of cannabis products produced in Canada and in respect of a specified province is determined as follows:

  • (a) in the case of Ontario, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 1, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 1, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 1 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 1 in any other case;

  • (b) in the case of Quebec, the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 2, and

    • (ii) the amount determined in respect of the cannabis products under section 2 of Schedule 2;

  • (c) in the case of Nova Scotia, the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 3, and

    • (ii) the amount determined in respect of the cannabis products under section 2 of Schedule 3;

  • (d) in the case of New Brunswick, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 4, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 4, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 4 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 4 in any other case;

  • (e) in the case of British Columbia, the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 5, and

    • (ii) the amount determined in respect of the cannabis products under section 2 of Schedule 5;

  • (f) in the case of Prince Edward Island, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 6, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 6, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 6 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 6 in any other case;

  • (g) in the case of Saskatchewan, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 7, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 7 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 7 in any other case;

  • (h) in the case of Alberta, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 8, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 8, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 8 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 8 in any other case;

  • (i) in the case of Newfoundland and Labrador, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 9, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 9, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 9 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 9 in any other case;

  • (j) in the case of Yukon, the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 10, and

    • (ii) the amount determined in respect of the cannabis products under section 2 of Schedule 10;

  • (k) in the case of the Northwest Territories, the amount that is equal to the greater of

    • (i) the amount determined in respect of the cannabis products under section 1 of Schedule 11, and

    • (ii) the amount determined in respect of the cannabis products under section 2 of Schedule 11; and

  • (l) in the case of Nunavut, the amount that is equal to the total of

    • (i) the amount that is the greater of

      • (A) the amount determined in respect of the cannabis products under section 1 of Schedule 12, and

      • (B) the amount determined in respect of the cannabis products under section 2 of Schedule 12, and

    • (ii) the amount determined in respect of the cannabis products under

      • (A) section 5 of Schedule 12 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or

      • (B) section 6 of Schedule 12 in any other case.