Tobacco Charges Regulations (SOR/2025-80)

Whereas, under subsection 42.1(2)Footnote ^a of the Tobacco and Vaping Products ActFootnote ^b, the Minister of Mental Health and Addictions and Associate Minister of Health has consulted with any persons or entities that that Minister considers to be interested in the matter;

• Return to footnote ^aS.C. 2024, c. 15, s. 217

• Return to footnote ^bS.C. 1997, c. 13; S.C. 2018, c. 9, s. 2

Therefore, the Minister of Mental Health and Addictions and Associate Minister of Health makes the annexed Tobacco Charges Regulations under subsection 42.1(1)Footnote ^a of the Tobacco and Vaping Products ActFootnote ^b.

Ottawa, March 3, 2025

La ministre de la Santé mentale et des Dépendances et ministre associée de la Santé, Ya’ara Saks Minister of Mental Health and Addictions and Associate Minister of Health

Definitions and Application

Marginal note:Definitions

1 The following definitions apply in these Regulations.

annual charge

annual charge means the amount, in Canadian dollars, that a designated manufacturer is required to pay during a fiscal year for the purpose of allowing His Majesty in Right of Canada to recover the annual cost base for the previous fiscal year. (redevance annuelle)

annual cost base

annual cost base means the amount, in Canadian dollars, representing the costs incurred by His Majesty in right of Canada during a fiscal year in relation to the carrying out of the purpose of the Tobacco and Vaping Products Act. (frais de base annuels)

cigar

cigar means a roll or tubular construction intended for smoking, other than a little cigar, that contains a filler composed of natural or reconstituted tobacco and has a wrapper, or a wrapper and a binder, composed of natural or reconstituted tobacco. (cigare)

cigarette

cigarette includes any roll or tubular construction that contains tobacco and is intended for smoking, other than a cigar, little cigar, tobacco stick or bidi. (cigarette)

civic address

civic address means

• (a) for an address in Canada, the unit number, civic number, street name, municipality name, province name and postal code; and

• (b) for an address outside Canada, the unit number, civic number, street name, municipality name, province or state name, postal or ZIP code and country name. (adresse municipale)

designated manufacturer

designated manufacturer means an entity in Canada that manufactures or imports tobacco products for retail sale in Canada. It does not include an entity that only packages, labels or distributes those tobacco products. (fabricant désigné)

fiscal year

fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year.  (exercice)

heated tobacco product

heated tobacco product means a tobacco product intended for use with a device that is necessary for its use and that heats the tobacco. (produit du tabac chauffé)

net sales revenue

net sales revenue means the value, in Canadian dollars, of a designated manufacturer’s sales of tobacco products — excluding any taxes or duties — during a fiscal year minus the value of any returns of tobacco products during the same fiscal year. It includes the value, in Canadian dollars, of monetary and non-monetary consideration received by the designated manufacturer for sales of tobacco products. (recette de ventes nettes)

smokeless tobacco

smokeless tobacco means chewing tobacco or snuff. (tabac sans fumée)

tobacco product

tobacco product does not include papers, tubes or filters intended for use with a tobacco product, a device that is necessary for the use of a tobacco product or the parts that may be used with that device. (produit du tabac)

Marginal note:Application

2 These Regulations apply to designated manufacturers in respect of tobacco products sold

• (a) at retail in Canada;

• (b) as ships’ stores, in accordance with the Ships’ Stores Regulations; and

• (c) to an accredited representative, as defined in section 2 of the Excise Act, 2001.

Sales and Revenue

Marginal note:Statement of sales and revenue

• 3 (1) A designated manufacturer must submit to the Minister, no later than April 30 of each fiscal year, a statement of sales and revenue for the previous fiscal year that includes the following information:

  • (a) the designated manufacturer’s name, telephone number, email address and the civic address of its principal place of business in Canada;

  • (b) the name, telephone number and email address of the individual who prepared the statement of sales and revenue and the civic address of their workplace;

  • (c) the name, telephone number and email address of the individual who is responsible for the designated manufacturer’s financial affairs and the civic address of their workplace and, if that individual works for an entity other than the designated manufacturer, the name of the entity, as well as the telephone number, email address and civic address of its principal place of business in Canada;

  • (d) the name, telephone number and email address of the individual responsible for communications respecting payment of the annual charge and the civic address in Canada of their workplace;

  • (e) the business number assigned to the designated manufacturer by the Minister of National Revenue;

  • (f) the date of the statement of sales and revenue and the fiscal year to which it relates;

  • (g) the designated manufacturer’s net sales revenue for each of the following categories as well as its total net sales revenue:

    • (i) cigarettes,

    • (ii) cigars,

    • (iii) little cigars,

    • (iv) cigarette tobacco,

    • (v) leaf tobacco,

    • (vi) pipe tobacco,

    • (vii) water pipe tobacco,

    • (viii) smokeless tobacco,

    • (ix) heated tobacco products, and

    • (x) all other types of tobacco product; and

  • (h) for each category referred to in subparagraphs (g)(i) to (x):

    • (i) in the case of a tobacco product sold by weight, the total weight in kilograms of the tobacco products sold during the fiscal year minus the total weight in kilograms of the tobacco products returned during the same fiscal year,

    • (ii) in the case of a tobacco product sold as a unit or as a package containing more than one unit, the total number of units sold during the fiscal year minus the total number of units returned during the same fiscal year, and

    • (iii) the total value, in Canadian dollars, of any excise duty imposed during the fiscal year on the tobacco products sold minus the total value, in Canadian dollars, of any excise duty imposed during the same fiscal year on any returns of the tobacco product.

• Marginal note:Attestations

  (2) The statement of sales and revenue must include the following signed and dated attestations:

  • (a) an attestation by the individual who prepared the statement that the information in the statement is correct and complete to the best of their knowledge and belief and is provided in good faith; and

  • (b) an attestation by the individual who is responsible for the designated manufacturer’s financial affairs that the statement was prepared in accordance with generally accepted accounting principles.

• Marginal note:Electronic submission

  (3) The designated manufacturer must submit the statement of sales and revenue using the form established by the Minister entitled Statement of Tobacco Sales and Revenue, as amended from time to time, and must send it electronically in the manner specified in the form.

• Marginal note:Clarification

  (4) A designated manufacturer must, within ten days of the day on which the Minister makes a request, submit to the Minister any information that is necessary to clarify information in the statement of sales and revenue.

Marginal note:Estimated total net sales revenue

• 4 (1) If a designated manufacturer did not submit a statement of sales and revenue for a given fiscal year or if the Minister has reasonable grounds to believe that the information provided by a designated manufacturer in its statement is incorrect or incomplete, the Minister may estimate the designated manufacturer’s total net sales revenue using any relevant information that is available to the Minister.

• Marginal note:Reference to total net sales revenue

  (2) If a designated manufacturer’s total net sales revenue has been estimated, a reference in these Regulations to that designated manufacturer’s total net sales revenue is to be read as a reference to its estimated total net sales revenue.

Annual Charge

Marginal note:Calculation

5 A designated manufacturer’s annual charge for each fiscal year is to be calculated according to the formula

Marginal note:Previous annual charges

• 6 (1) If the Minister becomes aware that an annual charge was not previously calculated for a designated manufacturer but should have been calculated, the Minister must calculate that annual charge according to the formula in section 5.

• Marginal note:Correction

  (2) If, based on new information, the Minister has reasonable grounds to believe that it is necessary to correct an annual charge that was previously calculated for a designated manufacturer, the Minister must

  • (a) use the new information to recalculate the annual charge according to the formula in section 5; and

  • (b) subtract the amount of the annual charge that was previously calculated from the amount of the annual charge that was recalculated under paragraph (a).

• Marginal note:Time limit

  (3) Subsections (1) and (2) do not apply if more than seven years have elapsed since November 30 of the fiscal year following the fiscal year to which the new information relates.

Marginal note:Payment due date

7 A designated manufacturer must, no later than November 30 of each fiscal year,

• (a) pay the annual charge that was calculated according to the formula in section 5 and any annual charge that was calculated under subsection 6(1) if, in the calculation of the annual charge, the designated manufacturer’s total net sales revenue was at least 0.001% of the aggregate of the total net sales revenue of all designated manufacturers; and

• (b) in the case of an annual charge that was recalculated under paragraph 6(2)(a) and where the subtraction made under paragraph 6(2)(b) results in a positive amount,

  • (i) pay that positive amount if, in the previous calculation of the annual charge, the designated manufacturer’s total net sales revenue was at least 0.001% of the aggregate of the total net sales revenue of all designated manufacturers, or

  • (ii) pay the recalculated annual charge if,

    • (A) in the previous calculation of the annual charge, the designated manufacturer’s total net sales revenue was less than 0.001% of the aggregate of the total net sales revenue of all designated manufacturers, and

    • (B) in the recalculation of the annual charge, the designated manufacturer’s total net sales revenue was at least 0.001% of the aggregate of the total net sales revenue of all designated manufacturers.

Marginal note:Amount credited

8 No later than November 30 of each fiscal year, the Minister must credit to a designated manufacturer any negative amount resulting from the subtraction made under paragraph 6(2)(b) if, in the previous calculation of the annual charge referred to in subsection 6(2), the designated manufacturer’s total net sales revenue was at least 0.001% of the aggregate of the total net sales revenue of all designated manufacturers.

Disclosure of Information

Documents

Marginal note:Documents to be kept

• 10 (1) A designated manufacturer must keep the documents it used in order to submit the statement of sales and revenue required under subsection 3(1) and any clarifying information requested by the Minister under subsection 3(4) for a period of at least seven years after the day on which the statement to which the documents relate was submitted to the Minister.

• Marginal note:Accessibility of documents

  (2) The documents must be kept in paper or electronic form at the designated manufacturer’s principal place of business in Canada in such a way that they are readily accessible at all times and can be submitted to the Minister on written request.

Coming into Force

Marginal note:May 1, 2025

• 11 (1) These Regulations, except section 9, come into force on May 1, 2025, but if they are registered after that day, they come into force on the day on which they are registered.

• Marginal note:April 1, 2028

  (2) Section 9 comes into force on April 1, 2028.