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Duty Free Shop Regulations (SOR/86-1072)

Regulations are current to 2020-07-28 and last amended on 2019-06-25. Previous Versions

PART ILicensing of Duty Free Shops (continued)

Amendment of Licence

  •  (1) The Minister may amend a licence only for the following purposes:

    • (a) subject to subsection (2),

      • (i) to change a restriction specified in the licence as to the classes of goods that may be received in the duty free shop, or to specify such a restriction,

      • (ii) to change the circumstances specified in the licence in which goods may be received in the duty free shop, or to specify such circumstances; or

    • (b) to change the name of the licensee, where the name of the licensee is changed.

  • (2) The Minister may amend a licence for the purposes set out in subparagraph (1)(a)(i) or (ii) only where he has given 90 days notice of the proposed amendment.

Cancellation or Suspension of Licences

 The Minister may cancel a licence where the licensee

  • (a) no longer owns or leases the place that is licensed as a duty free shop;

  • (b) requests the Minister in writing to cancel the licence; or

  • (c) is bankrupt.

  • SOR/96-153, s. 3
  •  (1) Subject to section 10, the Minister may suspend or cancel a licence where the licensee

    • (a) is the subject of a receivership in respect of his debts;

    • (b) fails to comply with any Act of Parliament, or any regulation made pursuant thereto, that prohibits, controls or regulates the importation or exportation of goods, or that relates to customs and excise;

    • (c) [Repealed, SOR/96-153, s. 4]

    • (d) has, in the course of his operation of the duty free shop, acted dishonestly in his business dealings with customers, suppliers, customs brokers, carriers, Her Majesty or servants of Her Majesty; or

    • (e) has failed to carry out, within a reasonable time and in a reasonable manner, any proposal made in the application for the licence.

  • (2) Subject to section 10, the Minister may suspend or cancel a licence where

    • (a) the volume of goods sold in the duty free shop is no longer sufficient to warrant the continued operation of the duty free shop;

    • (b) there is no longer a need for a duty free shop in the area in which the duty free shop is located;

    • (c) the Agency is no longer able to provide customs services with respect to the duty free shop; or

    • (d) the licensee has altered the structure of the duty free shop in a manner that

      • (i) contravenes a requirement related to the storage or sale of goods set out in the Act or in these Regulations,

      • (ii) impedes the flow of traffic in the vicinity in which the duty free shop is located, or

      • (iii) detrimentally affects the immediate export of goods.

  • (3) Subject to section 10, the Minister may cancel a licence where the licensee

    • (a) has made a misrepresentation in the application for the licence; or

    • (b) no longer qualifies under these Regulations for a licence.

  • SOR/96-153, s. 4
  • SOR/2002-218, s. 4
  • SOR/2005-182, s. 2
  •  (1) The Minister shall, immediately after suspending a licence, give to the licensee a notice confirming the suspension and providing all relevant information concerning the grounds on which the Minister has suspended the licence.

  • (2) The licensee may, within 30 days after the day on which the licence is suspended, make representations to the Minister regarding why the licence should be reinstated.

  • (3) The Minister shall, before cancelling a licence under section 9, give the licensee 90 days notice of the proposed cancellation and provide the licensee with all relevant information concerning the grounds on which the Minister proposes to cancel the licence.

  • (4) The licensee may, within 90 days after the day on which the notice referred to in subsection (3) is given, make representations to the Minister regarding why the licence should not be cancelled.

  • SOR/96-153, s. 5

Reinstatement and Renewal of Licences

 The Minister may reinstate a suspended licence where the Minister is satisfied that the cause for the suspension no longer exists.

 The Minister may renew a licence on the expiration of its term on condition that

  • (a) in the case of a duty free shop at a border crossing point, the licensee submits an application in the prescribed form to the Commissioner at least 90 days before the date on which the licence is to expire;

  • (b) in the case of a duty free shop at an airport, the licensee has been granted a new lease, an extension of the existing lease or a new right to occupy the place operated as a duty free shop; and

  • (c) no grounds exist for the Minister to suspend or cancel the licence.

  • SOR/2002-218, s. 5
  • SOR/2005-182, s. 3

PART IIOperation of Duty Free Shops

Facilities, Services and Standards

  •  (1) Every licensee shall, at the duty free shop in respect of which his licence was issued,

    • (a) [Repealed, SOR/2019-259, s. 3]

    • (b) [Repealed, SOR/2019-259, s. 3]

    • (c) provide service in English and French if the duty free shop is located in an area in which customs services are provided in English and French; and

    • (d) display notices in English and French indicating

      • (i) that the goods sold in the duty free shop are for immediate exportation only and must be reported under the Act if they are returned to Canada,

      • (ii) the circumstances in which goods imported into the United States by individuals are exempt from duties, and

      • (iii) the circumstances in which goods imported into Canada by individuals are exempt from duties.

    • (e) and (f) [Repealed, SOR/96-153, s. 6]

  • (2) Where a duty free shop forms only part of a building, the licensee shall keep the duty free shop separate from the remainder of the building by a partition or other suitable structure.

  • (3) [Repealed, SOR/96-153, s. 6]

  • SOR/96-153, s. 6
  • SOR/2019-259, s. 3

 Every licensee shall ensure that

  • (a) [Repealed, SOR/2019-259, s. 4]

  • (b) the goods received in the duty free shop are held in an area designated by the chief officer of customs until, in the case of imported goods, those goods have been accounted for under the Act or, in the case of domestic goods, those goods have been approved by an officer for entry into the licensee’s inventory;

  • (c) the duty free shop may be locked and sealed by an officer where the chief officer of customs requests that the duty free shop be locked and sealed, for the purpose of enabling an officer to check the goods therein against the licensee’s records of inventory;

  • (d) the duty free shop may be locked and sealed by an officer in the event that the licensee’s licence expires or is cancelled or suspended and may be kept locked and sealed until

    • (i) in the case of goods in it other than excisable goods, the duties and taxes payable on the goods have been paid or the goods have been disposed of in accordance with the laws relating to customs and excise, and

    • (ii) in the case of goods in it that are excisable goods, the goods have been disposed of in accordance with the laws relating to customs and excise or, in the case of intoxicating liquor, in accordance with the laws relating to intoxicating liquor of the province in which the duty free shop is located; and

  • (e) the duty free shop is kept suitable for the safe-keeping of the goods stored in it.

  • SOR/2005-212, s. 2
  • SOR/2019-259, s. 4
  •  (1) No intoxicating liquor shall be sold in a duty free shop in a province unless the licensee has obtained written approval to sell intoxicating liquor from the board, commission or agency that is authorized by the laws of the province to sell or to authorize the sale of intoxicating liquor in that province.

  • (2) Unless a licensee has obtained written approval for the transfer from the board, commission or agency described in subsection (1), an intoxicating liquor shall not be transferred within the same province

    • (a) in the case of intoxicating liquors, from a duty free shop to another duty free shop;

    • (b) in the case of beer, from a duty free shop to a bonded warehouse; or

    • (c) in the case of wine or spirits,

      • (i) from a duty free shop to a bonded warehouse or an excise warehouse, or

      • (ii) from an excise warehouse to a duty free shop.

  • SOR/2005-212, ss. 3, 4(F)
 
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