Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Penalty for unauthorized export of raw leaf tobacco

235. Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $25,000.

Marginal note:Diversion of black stock tobacco

• 236. (1) Every tobacco licensee or customs bonded warehouse licensee is liable to a penalty if manufactured tobacco on which duty was imposed under section 42 at a rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1 is

  • (a) in the case of a tobacco licensee,

    • (i) delivered by the licensee other than to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or

    • (ii) exported by the licensee other than for delivery to a foreign duty free shop or as foreign ships’ stores; or

  • (b) in the case of a customs bonded warehouse licensee, delivered by the licensee other than to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations.

• Marginal note:Amount of penalty

  (2) The amount of the penalty is equal to 200% of the total of

  • (a) the amount by which

    • (i) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1

    exceeds

    • (ii) the duty that was imposed under section 42 on the tobacco, and

  • (b) the amount, if any, of special duty that was payable under paragraph 56(1)(b) in respect of the tobacco.

Marginal note:Diversion of non-duty-paid alcohol

• 237. (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free tobacco

  (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free cigars

  (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose.

• Marginal note:Diversion of duty-free tobacco in special excise warehouse

  (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose.

• Marginal note:Diversion of imported tobacco

  (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Exception

  (6) A licensee who would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol or tobacco product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse.