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

Regulations are current to 2019-07-01 and last amended on 2019-06-25. Previous Versions

Excise Duties on Cannabis Regulations

SOR/2019-78

EXCISE ACT, 2001

Registration 2019-03-26

Excise Duties on Cannabis Regulations

P.C. 2019-217 2019-03-25

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 304Footnote a and 304.1Footnote b of the Excise Act, 2001Footnote c, makes the annexed Excise Duties on Cannabis Regulations.

Interpretation

Marginal note:Definitions

 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

 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.

  • SOR/2019-264, s. 1

Additional Cannabis Duty

Marginal note:Dutiable amount — prescribed percentage

  •  (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.

  • SOR/2019-264, s. 2
 
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