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Excise Act (R.S.C., 1985, c. E-14)

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Act current to 2024-03-06 and last amended on 2023-06-22. Previous Versions

PART VTobacco and Cigars and Manufacturers Thereof (continued)

Canadian Leaf Tobacco (continued)

Marginal note:Fee for licence

 A person to whom a licence to carry on the trade or business of a tobacco packer is granted shall pay to the collector of the district or excise division in which he proposes to carry on that trade or business a licence fee prescribed by the regulations.

  • R.S., c. E-12, s. 227
  • R.S., c. 15(1st Supp.), s. 38

Marginal note:Regulations

 The Minister may, subject to this Act, make such regulations as to him seem necessary for carrying into effect and enforcing the provisions of this Act concerning Canadian raw leaf tobacco,

  • (a) for causing accounts to be kept by tobacco packers of all Canadian raw leaf tobacco received by them, and the stemmed and unstemmed leaf subsequently disposed of by them by removal, sale or otherwise;

  • (b) for the stemming, reconstituting or converting of Canadian raw leaf tobacco and for the disposal of stemmed, reconstituted or converted leaf and of stems and waste;

  • (c) for the preparing and packing of Canadian raw leaf tobacco and for the disposal thereof to persons or firms licensed under this Act who are entitled to receive raw leaf tobacco, or for export;

  • (d) for the packaging, stamping and disposal of Canadian raw leaf tobacco for consumption;

  • (e) for providing for any difference in weight occurring in, or resulting from, the operations of handling, storing, preparing, packing, stemming or otherwise treating Canadian raw leaf tobacco; and

  • (f) for the inspection of Canadian raw leaf tobacco on the premises of licensed tobacco packers and the collection of duty thereon, and as is deemed most effective for the prevention of frauds in the payment of that duty.

  • R.S., c. E-12, s. 228
  • R.S., c. 15(1st Supp.), s. 39

Marginal note:Monthly account

 Every tobacco packer shall render monthly to the collector a just and true account, in writing, extracted from the books kept as required by this Act, which account shall exhibit such particulars as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 224
  • 1999, c. 17, s. 144(E)

Marginal note:Selling, etc., unstamped raw leaf tobacco

  •  (1) Every person who, except as provided in this Act, without having a licence as required by this Act, disposes of, sells, offers for sale, purchases or has in the person’s possession Canadian raw leaf tobacco that is not stamped with a tobacco stamp in accordance with this Act and the ministerial regulations is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months.

  • Marginal note:Forfeiture

    (2) Any tobacco found that is not packaged and stamped as required by this Act shall be forfeited to the Crown and be seized and dealt with accordingly.

  • Marginal note:Exceptions

    (3) It shall be deemed not to be an offence against this section for a tobacco grower to have in his possession

    • (a) tobacco grown by him on his own property for sale or other disposal only to persons licensed and thereby entitled to receive the tobacco, where the tobacco is either on his property or is being transported by him for the purpose of being cured as provided in paragraph (b) or after being cured as provided in that paragraph; and

    • (b) tobacco grown by any other person, if the tobacco grower, in whose possession it is, operates a tobacco drying kiln on his property and the tobacco is on that property with the written permission of a superior officer and solely for the purpose of being cured and returned to the other person forthwith after completion of the curing process.

  • R.S., 1985, c. E-14, s. 225
  • 1993, c. 25, s. 45
  • 1999, c. 17, s. 144(E)

Offences and Punishment

Marginal note:Operating without a licence

 Every person who, without having a licence under this Act then in force,

  • (a) manufactures any tobacco or cigars except as permitted by this Act,

  • (b) claiming to have grown any tobacco and manufactured it solely for his own use, sells or barters away any tobacco so manufactured, or

  • (c) having purchased any raw leaf tobacco grown in Canada from the cultivator thereof, in any way unlawfully manufactures that tobacco and sells it, or offers it for sale in a manufactured state,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 226
  • 1993, c. 25, s. 46

Marginal note:Unlawfully manufacturing home produced tobacco

 Every person who, without having a licence under this Act then in force, manufactures any tobacco grown on his own land or property

  • (a) for the purpose of sale, or for any purpose other than use by himself and such members of his family as are resident with him on the farm or premises on which the tobacco was grown,

  • (b) into any product other than Canada twist, or

  • (c) in excess of fifteen kilograms (15 kg) for each adult member of the family resident on the farm or premises,

is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to a term of imprisonment of not more than twelve months, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 227
  • 1993, c. 25, s. 47

Marginal note:Further punishment

 Every person who becomes liable to a punishment provided for in section 226 or 227 shall, in addition thereto, forfeit to Her Majesty in right of Canada triple the amount of excise duty and licence fee that should have been paid by that person under this Act.

  • R.S., 1985, c. E-14, s. 228
  • 1993, c. 25, s. 48

 [Repealed, 1993, c. 25, s. 48]

Marginal note:Unlawful packaging or stamping

  •  (1) Every person who packages or stamps tobacco or cigars in such a way as to indicate that the duties of excise have been paid in respect of the tobacco or cigars or, in the case of imported tobacco or cigars, that the additional customs duty has been paid under the Customs Act and the Customs Tariff in respect of the tobacco or cigars, and who is not a licensed tobacco manufacturer, a licensed cigar manufacturer or a tobacco packer or, where the tobacco or cigars have been reported under the Customs Act and released under that Act, the importer or owner of the tobacco or cigars,

    • (a) is guilty of an indictable offence and liable to

      • (i) a fine of not less than ten thousand dollars and not more than one million dollars, or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding five years; or

    • (b) is guilty of an offence punishable on summary conviction and liable to

      • (i) a fine of not less than one thousand dollars and not more than one hundred thousand dollars, or

      • (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years.

  • Marginal note:Imprisonment in default of payment

    (2) Where a fine is imposed under subsection (1), a term of imprisonment may be imposed in default of payment of the fine, but no such term shall exceed

    • (a) where the fine is imposed under paragraph (1)(a), five years in addition to any other term of imprisonment imposed on the person under that paragraph; and

    • (b) where the fine is imposed under paragraph (1)(b), two years in addition to any other term of imprisonment imposed on the person under that paragraph.

  • Marginal note:Forfeiture

    (3) All articles subject to excise on the premises at the time the tobacco or cigars referred to in subsection (1) are discovered shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 233
  • 1993, c. 25, s. 49

 [Repealed, 1993, c. 25, s. 49]

Marginal note:Unlawful removal of tobacco or cigars

  •  (1) Every person who removes or permits the removal from any manufactory, or from any place where tobacco or cigars are made, any manufactured tobacco or cigars

    • (a) without the manufactured tobacco or cigars being packaged,

    • (b) without the manufactured tobacco or cigars being stamped with tobacco stamps or cigar stamps in accordance with this Act and the ministerial regulations, where the tobacco or cigars are entered for consumption, or

    • (c) without having printed on, or affixed to, the packages, cartons, boxes, crates or other containers containing the manufactured tobacco or cigars tobacco markings in accordance with this Act and the regulations, where the tobacco or cigars are removed in bond,

    is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars or to both that fine and imprisonment for a term not exceeding twelve months.

  • Marginal note:Imprisonment in default of payment

    (2) Where a fine is imposed under subsection (1), a term of imprisonment may be imposed in default of payment of the fine, but no such term shall exceed twelve months in addition to any other term of imprisonment imposed on the person under that subsection.

  • Marginal note:Forfeiture

    (3) All manufactured tobacco or cigars removed in contravention of subsection (1), or possessed without being stamped with tobacco stamps or cigar stamps as required by this Act and the ministerial regulations or without the packages, cartons, boxes, crates or other containers in which the manufactured tobacco or cigars are contained having printed on them or affixed to them tobacco markings as required by this Act and the regulations, shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • R.S., 1985, c. E-14, s. 235
  • 1993, c. 25, s. 50
  • 1994, c. 37, s. 7
  • 1999, c. 17, s. 144(E)

 [Repealed, 1993, c. 25, s. 50]

Marginal note:Receiving goods from manufacturers not duly licensed

 Every person who purchases or receives for sale any manufactured tobacco or cigars from any manufacturer not duly licensed under this Act is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to imprisonment for a term not exceeding twelve months, and shall, in addition thereto, forfeit all the manufactured tobacco or cigars so purchased or received for sale, or the full value of the manufactured tobacco or cigars including all duties and taxes that were payable under this Act or any other Act in respect of the manufactured tobacco or cigars.

  • R.S., 1985, c. E-14, s. 237
  • 1993, c. 25, s. 51

Marginal note:Receiving goods fraudulently stamped or marked

 Every person who purchases or receives for sale any manufactured tobacco or cigars that are fraudulently stamped is guilty of an offence punishable on summary conviction and liable to a fine of not more than ten thousand dollars, and in default of payment of the fine to imprisonment for a term not exceeding twelve months, and shall, in addition thereto, forfeit all the manufactured tobacco or cigars so purchased or received for sale, or the full value of the manufactured tobacco or cigars including all duties and taxes that were payable under this Act or any other Act in respect of the manufactured tobacco or cigars.

  • 1993, c. 25, s. 51

Marginal note:Receiving manufactured tobacco or cigars not packaged and stamped

 Except as provided in this Act, every person who purchases or receives for sale any manufactured tobacco or cigars that have not been packaged and stamped with tobacco stamps or cigar stamps as required by this Act and the ministerial regulations is guilty of an offence punishable on summary conviction and liable to a fine not exceeding ten thousand dollars, and in default of payment of the fine to imprisonment for a term not exceeding twelve months, and shall, in addition to the fine, forfeit all the manufactured tobacco or cigars so purchased or received for sale, or the full value of the manufactured tobacco or cigars including all duties and taxes that were payable under this Act or any other Act in respect of the manufactured tobacco or cigars.

  • R.S., 1985, c. E-14, s. 238
  • 1993, c. 25, s. 51
  • 1999, c. 17, s. 144(E)

Marginal note:False account of tobacco brought into factory

 Every manufacturer of tobacco or cigars who omits to enter, or allows any person in his employ to omit to enter, in the inventories, statements, books or returns kept or made pursuant to this Act or the regulations a true account of all tobacco brought into his manufactory shall, for each offence, incur a fine of not more than one thousand dollars and not less than two hundred dollars, and all goods subject to excise found on the premises in which the offence is committed shall be forfeited to the Crown and dealt with accordingly.

  • R.S., c. E-12, s. 245

Marginal note:Absence of stamps to be notice

  •  (1) The absence of the proper tobacco stamp or cigar stamp required by this Act and the ministerial regulations to be impressed on, printed on, marked on, indented into or affixed to any cigarette or cigar or any package, carton, box, crate or other container of manufactured tobacco or cigars sold, offered for sale, kept for sale or found in the possession of any person is notice to all persons that

    • (a) in the case of manufactured tobacco or cigars manufactured in Canada, the duties of excise and excise tax imposed on the manufactured tobacco or cigars have not been paid; and

    • (b) in the case of manufactured tobacco or cigars imported into Canada, the additional customs duty imposed on the manufactured tobacco or cigars under the Customs Act and the Customs Tariff and the excise tax imposed on the manufactured tobacco or cigars have not been paid.

  • Marginal note:Tobacco or cigars to be forfeited

    (2) Manufactured tobacco or cigars that are not put up in packages and stamped with tobacco stamps or cigar stamps as required by this Act and the ministerial regulations and that are

    • (a) sold or offered for sale, other than

      • (i) in the case of manufactured tobacco, by a licensed tobacco manufacturer for export from Canada in accordance with this Act and the ministerial regulations,

      • (i.1) in the case of cigars, by a licensed cigar manufacturer

        • (A) for export from Canada in accordance with this Act and the ministerial regulations, or

        • (B) as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act,

      • (ii) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c),

      • (iii) by a person licensed under the Customs Tariff to operate a bonded warehouse, where

        • (A) the cigars were manufactured in Canada and are sold or offered for sale as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, or

        • (B) the manufactured tobacco or cigars were imported and are, in accordance with this Act, the Customs Tariff and the Customs Act, sold or offered for sale to an accredited representative, to a duty free shop licensed under the Customs Act, as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act, to an operator of a bonded warehouse licensed under the Customs Tariff or for export, or

      • (iv) by a person licensed under the Customs Act to operate a duty free shop, if

        • (A) the manufactured tobacco was imported and is sold or offered for sale in accordance with that Act to a person about to leave Canada, or

        • (B) the cigars are sold or offered for sale in accordance with that Act to a person about to leave Canada,

    • (b) found in the possession of any person, other than

      • (i) in the possession of a licensed tobacco manufacturer or licensed cigar manufacturer, in the manufactory of that manufacturer,

      • (ii) in the possession of a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c), in that bonding warehouse,

      • (iii) while the manufactured tobacco or cigars are in transit in accordance with ministerial regulations after having been removed in bond under ministerial regulations,

      • (iv) in the case of cigars or imported manufactured tobacco, in the possession of a person licensed under the Customs Tariff to operate a bonded warehouse or under the Customs Act to operate a sufferance warehouse or duty free shop in that warehouse or duty free shop,

      • (v) in the possession of a person who is an accredited representative for the personal or official use of that person,

      • (vi) in the case of cigars or imported manufactured tobacco, in the possession of a person as ships’ stores, if the acquisition and possession of the cigars or manufactured tobacco by that person are in accordance with the regulations made under the Customs Act, the Customs Tariff and the Excise Tax Act, or

      • (vii) in such quantities as may be prescribed by ministerial regulations, where

        • (A) the manufactured tobacco or cigars were imported by an individual for consumption by the individual or for consumption by another person at the individual’s expense,

        • (B) the manufactured tobacco or cigars were imported in quantities not in excess of such quantities as are prescribed by ministerial regulations made for the purposes of subsection 201(3), and

        • (C) all duties, within the meaning assigned by subsection 2(1) of the Customs Act, payable on the manufactured tobacco or cigars have been paid,

    shall be forfeited to Her Majesty in right of Canada and shall be seized by any officer and dealt with accordingly.

  • 1993, c. 25, s. 52
  • 1994, c. 37, s. 8
  • 1995, c. 41, s. 111
  • 1999, c. 17, s. 144(E)
  • 2001, c. 16, s. 14
  • 2002, c. 22, s. 425(F)
 

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