Tobacco Tax Amendments Act, 2001 (S.C. 2001, c. 16)

• 10. (1) The Act is amended by adding the following after section 102:

  Marginal note:Penalty for removal from bonding warehouse for certain exports

  102.1 Every person who removes from a bonding warehouse and exports in bond manufactured tobacco (as defined in subsection 58.1(1)) otherwise than in accordance with subparagraph 58.1(3)(a)(i) and paragraph 58.1(3)(b) is liable to pay, in addition to any duties or taxes that are payable under this or any other Act in respect of the tobacco, a penalty equal to the total of those duties and taxes, and that penalty becomes payable at the time the tobacco is exported.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:R.S., c. 12 (4th Supp.), s. 61

• 11. (1) The portion of subsection 110.1(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Penalty and interest

  • 110.1 (1) Subject to subsection (2), on default in payment of any duty or penalty payable under this Act within the time prescribed by this Act or the regulations, the person liable to pay that duty or penalty shall pay without delay, in addition to the amount in default,

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1993, c. 25, s. 40; 1994, c. 37, s. 5(F); 1999, c. 17, par. 144(1)(z.7)(E)

12. Subsections 201(1) and (2) of the Act are replaced by the following:

Marginal note:1994, c. 37, s. 6; 1999, c. 17, par. 144(1)(z.11)(E)

13. Section 211 of the Act is replaced by the following:

Marginal note:1994, c. 37, s. 8; 1999, c. 17, par. 144(1)(z.19)(E)

• 14. (1) The portion of subsection 239.1(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Absence of stamps to be notice

  • 239.1 (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

• Marginal note:1993, c. 25, s. 52; 1995, c. 41, s. 111(1); 1999, c. 17, par. 144(1)(z.19)(E)

  (2) Subparagraph 239.1(2)(a)(i) of the Act is replaced by the following:

  • (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,

• Marginal note:1995, c. 41, s. 111(2)

  (3) Clauses 239.1(2)(a)(iii)(A) and (B) of the Act are replaced by the following:

  • (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

• Marginal note:1993, c. 25, s. 52

  (4) Subparagraph 239.1(2)(a)(iv) of the Act is replaced by the following:

  • (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,

• Marginal note:1995, c. 41, s. 111(3)

  (5) Subparagraph 239.1(2)(b)(iv) of the Act is replaced by the following:

  • (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,

• Marginal note:1995, c. 41, s. 111(4)

  (6) Subparagraph 239.1(2)(b)(vi) of the Act is replaced by the following:

  • (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

• (7) Subsections (2) to (6) are deemed to have come into force on April 6, 2001, but do not apply to manufactured tobacco entered into a bonding warehouse before that day.

Marginal note:1995, c. 41, s. 112(1)

• 15. (1) Paragraph 240(2)(d) of the Act is replaced by the following:

  • (d) in the case of cigars or imported manufactured tobacco, by 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;

• Marginal note:1995, c. 41, s. 112(2)

  (2) Paragraph 240(2)(f) of the Act is replaced by the following:

  • (f) in the case of cigars or imported manufactured tobacco, as ships’ stores by a person 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

• Marginal note:1993, c. 25, s. 52; 1995, c. 41, s. 112(3); 1999, c. 17, par. 144(1)(z.20)(E)

  (3) Paragraph 240(3)(a) of the Act is replaced by the following:

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

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

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

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

• Marginal note:1995, c. 41, s. 112(4)

  (4) Subparagraphs 240(3)(c)(i) and (ii) of the Act are replaced by the following:

  • (i) 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

  • (ii) the manufactured tobacco or cigars were imported and are, in accordance with this Act, the Customs Act and the Customs Tariff, 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

• Marginal note:1993, c. 25, s. 52

  (5) Paragraph 240(3)(d) of the Act is replaced by the following:

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

    • (i) 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

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

• (6) Subsections (1) to (5) are deemed to have come into force on April 6, 2001, but do not apply to manufactured tobacco entered into a bonding warehouse before that day.