Excise Act, 2001 (S.C. 2002, c. 22)
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Assented to 2002-06-13
Excise Act, 2001
S.C. 2002, c. 22
Assented to 2002-06-13
An Act respecting the taxation of spirits, wine and tobacco and the treatment of ships’ stores
SUMMARY
This enactment introduces a modern framework for the taxation of spirits, wine and tobacco. It re-enacts existing provisions in the Excise Act and the Excise Tax Act relating to the excise levies on these products, together with technical improvements, and incorporates a range of new provisions. The key features of the enactment include the following:
(a) the continued imposition of a production levy on spirits, tobacco products and raw leaf tobacco and the replacement of the existing excise levy on sales of wine with a production levy at an equivalent rate;
(b) the replacement of the excise duty and excise tax on tobacco products other than cigars with a single excise duty;
(c) the introduction of excise warehouses to allow for the deferral of the payment of the production levy on domestic and imported spirits and wine to the time of sale to the retailer;
(d) more comprehensive licensing requirements and new registration requirements for persons carrying on activities in relation to goods subject to duty;
(e) explicit recognition of limited exemptions for certain goods produced by individuals for their personal use;
(f) tight new controls on the possession and distribution of goods on which duty has not been paid;
(g) modern provisions concerning the use of spirits and wine for non-beverage purposes and the use of specially denatured alcohol;
(h) updated administrative provisions, including new remittance, assessment and appeal provisions that are similar to those under the Goods and Services Tax/Harmonized Sales Tax legislation;
(i) updated enforcement provisions, including new offence, penalty and collection provisions; and
(j) transitional provisions applicable to spirits, wine and tobacco products produced before the enactment comes into force.
This enactment also implements changes to the ships’ stores provisions, which were announced by the government on September 27, 2001. These changes broaden the enabling legislation for ships’ stores regulations and implement a temporary fuel tax rebate program for certain ships that, as a result of amendments to the Ships’ Stores Regulations effective June 1, 2002, will no longer qualify for ships’ stores relief.
Furthermore, this enactment implements the tobacco tax increases announced by the government on November 1, 2001.
Finally, the replacement of the existing provisions in the Excise Act and the Excise Tax Act relating to the excise levies on spirits, wine and tobacco necessitates consequential amendments to those Acts as well as other Acts, including the Budget Implementation Act, 2000, the Canada Customs and Revenue Agency Act, the Criminal Code, the Customs Act, the Customs and Excise Offshore Application Act, the Customs Tariff, the Export Act, the Importation of Intoxicating Liquors Act, the Special Economic Measures Act and the Tax Court of Canada Act.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Excise Act, 2001.
INTERPRETATION
Marginal note:Definitions
2. The definitions in this section apply in this Act.
“absolute ethyl alcohol”
« alcool éthylique absolu »
“absolute ethyl alcohol” means the substance with the chemical composition C2H5OH.
“accredited representative”
« représentant accrédité »
“accredited representative” means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act.
“Agency”
« Agence »
“Agency” means the Canada Customs and Revenue Agency established under subsection 4(1) of the Canada Customs and Revenue Agency Act.
“alcohol”
« alcool »
“alcohol” means spirits or wine.
“alcohol licensee”
« titulaire de licence d’alcool »
“alcohol licensee” means a person who is a spirits licensee or a wine licensee.
“alcohol registrant”
« détenteur autorisé d’alcool »
“alcohol registrant” means a person who holds an alcohol registration issued under section 17.
“analyst”
« analyste »
“analyst” means a person who is designated as an analyst under section 11.
“approved formulation”
« préparation approuvée »
“approved formulation” means
(a) any product made with alcohol by a licensed user in accordance with a formula for which the user has approval from the Minister; and
(b) any imported product that, in the opinion of the Minister, would be a product under paragraph (a) if it were made in Canada by a licensed user.
“assessment”
« cotisation »
“assessment” means an assessment under this Act and includes a reassessment.
“beer”
« bière »
“beer” means beer or malt liquor as defined in section 4 of the Excise Act.
“black stock”
« non ciblé »
“black stock”, in respect of manufactured tobacco, means that the tobacco is stamped but not marked in accordance with any statute of a province to indicate that it is intended for retail sale in a particular province or in particular provinces.
“bottle-your-own premises”
« centre de remplissage libre-service »
“bottle-your-own premises” means premises in which, in accordance with the laws of the province in which they are located, alcohol is supplied from a marked special container of alcohol for the purpose of being packaged by a purchaser.
“bulk”
« en vrac »
“bulk”, in respect of alcohol, means alcohol that is not packaged.
“cigar”
« cigare »
“cigar” includes
(a) a cigarillo or cheroot; and
(b) any roll or tubular construction intended for smoking that consists of a filler composed of pieces of natural or reconstituted leaf tobacco, a binder of natural or reconstituted leaf tobacco in which the filler is wrapped and a wrapper of natural or reconstituted leaf tobacco.
“cigarette”
« cigarette »
“cigarette” includes any roll or tubular construction intended for smoking, other than a cigar or a tobacco stick. If a cigarette exceeds 102 mm in length, each portion of 76 mm or less is considered to be a separate cigarette.
“Commissioner”
« commissaire »
“Commissioner” means the Commissioner of Customs and Revenue, appointed under section 25 of the Canada Customs and Revenue Agency Act.
“container”
« contenant »
“container”, in respect of a tobacco product, means a wrapper, package, carton, box, crate or other container that contains the tobacco product.
“customs bonded carrier”
« transporteur cautionné »
“customs bonded carrier” means a person who transports or causes to be transported goods in accordance with section 20 of the Customs Act.
“customs bonded warehouse”
« entrepôt de stockage »
“customs bonded warehouse” means a place that is licensed as a bonded warehouse under the Customs Tariff.
“customs bonded warehouse licensee”
« exploitant agréé d’entrepôt de stockage »
“customs bonded warehouse licensee” means a person licensed under the Customs Tariff to operate a bonded warehouse.
“data”
« données »
“data” means representations, in any form, of information or concepts.
“denature”
« dénaturation »
“denature” means to denature spirits into denatured alcohol or specially denatured alcohol using prescribed denaturants in the prescribed manner.
“denatured alcohol”
« alcool dénaturé »
“denatured alcohol” means any prescribed grade of denatured alcohol made from spirits in accordance with the prescribed specification for that grade.
“duty”
« droit »
“duty” means, unless a contrary intention appears, the duty imposed under this Act and the duty levied under section 21.1 or 21.2 of the Customs Tariff and, except in Parts 3 and 4, includes special duty.
“duty free shop”
« boutique hors taxes »
“duty free shop” means a place that is licensed as a duty free shop under the Customs Act.
“duty free shop licensee”
« exploitant agréé de boutique hors taxes »
“duty free shop licensee” means a person licensed under the Customs Act to operate a duty free shop.
“duty-paid market”
« marché des marchandises acquittées »
“duty-paid market” means the market for goods in respect of which duty, other than special duty, is payable.
“duty-paid value”
« valeur à l’acquitté »
“duty-paid value” means
(a) in respect of imported cigars, the value of the cigars as it would be determined for the purpose of calculating an ad valorem duty on the cigars in accordance with the Customs Act, whether or not the cigars are subject to ad valorem duty, plus the amount of any duty imposed on the cigars under section 42 of this Act and section 20 of the Customs Tariff; and
(b) in respect of imported cigars that, when imported, are contained in containers or otherwise prepared for sale, the total of the value of the cigars as determined in accordance with paragraph (a) and the value similarly determined of the container in which they are contained.
“excise warehouse”
« entrepôt d’accise »
“excise warehouse” means the premises of an excise warehouse licensee that are specified by the Minister as the excise warehouse of the licensee.
“excise warehouse licensee”
« exploitant agréé d’entrepôt d’accise »
“excise warehouse licensee” means a person who holds an excise warehouse licence issued under section 19.
“export”
« exportation »
“export” means to export from Canada.
“ferment-on- premises facility”
« vinerie libre-service »
“ferment-on- premises facility” means the premises of a ferment-on-premises registrant that are specified by the Minister as the registrant’s ferment-on-premises facility.
“ferment-on- premises registrant”
« exploitant autorisé de vinerie libre-service »
“ferment-on- premises registrant” means a person who holds a ferment-on-premises registration issued under section 15.
“fiscal month”
« mois d’exercice »
“fiscal month” means a fiscal month as determined under section 159.
“foreign duty free shop”
« boutique hors taxes à l’étranger »
“foreign duty free shop” means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country.
“foreign ships’ stores”
« provisions de bord à l’étranger »
“foreign ships’ stores” means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft.
“Her Majesty”
« Sa Majesté »
“Her Majesty” means Her Majesty in right of Canada.
“import”
« importation »
“import” means to import into Canada.
“intoxicating liquor”
« boisson enivrante »
“intoxicating liquor” has the same meaning as in section 2 of the Importation of Intoxicating Liquors Act.
“judge”
« juge »
“judge”, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court.
“licensed tobacco dealer”
« commerçant de tabac agréé »
“licensed tobacco dealer” means a person who holds a tobacco dealer’s licence issued under section 14.
“licensed user”
« utilisateur agréé »
“licensed user” means a person who holds a user’s licence issued under section 14.
“liquor authority”
« administration des alcools »
“liquor authority” means a government board, commission or agency that is authorized by the laws of a province to sell intoxicating liquor.
“manufacture”
« fabrication »
“manufacture”, in respect of a tobacco product, includes any step in the preparation or working up of raw leaf tobacco into the tobacco product. It includes packing, stemming, reconstituting, converting or packaging the raw leaf tobacco or tobacco product.
“manufactured tobacco”
« tabac fabriqué »
“manufactured tobacco” means every article, other than a cigar or packaged raw leaf tobacco, that is manufactured in whole or in part from raw leaf tobacco by any process.
“mark”
« marquer »
“mark” means, in respect of
(a) a special container of spirits, to mark in the prescribed form and manner to indicate that the container is intended for
(i) delivery to and use by a registered user, or
(ii) delivery to and use at a bottle-your-own premises; and
(b) a special container of wine, to mark in the prescribed form and manner to indicate that the container is intended for delivery to and use at a bottle-your-own premises.
“Minister”
« ministre »
“Minister” means the Minister of National Revenue.
“month”
« mois »
“month” means a period beginning on a particular day in a calendar month and ending on
(a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or
(b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month.
“non-duty-paid”
« non acquitté »
“non-duty-paid”, in respect of packaged alcohol, means that duty, other than special duty, has not been paid on the alcohol.
“officer”
« préposé »
“officer”, except in sections 167, 226 and 296, means a person who is appointed or employed in the administration or enforcement of this Act, a member of the Royal Canadian Mounted Police or a member of a police force designated under subsection 10(1).
“packaged”
« emballé »
“packaged” means
(a) in respect of raw leaf tobacco or a tobacco product, packaged in a prescribed package; or
(b) in respect of alcohol, packaged
(i) in a container of a capacity of not more than 100 L that is ordinarily sold to consumers without the alcohol being repackaged, or
(ii) in a marked special container.
“partially manufactured tobacco”
« tabac partiellement fabriqué »
“partially manufactured tobacco” means manufactured tobacco that is cut filler or cut rag or that is manufactured less fully than cut filler or cut rag.
“peace officer”
« agent de la paix »
“peace officer” has the same meaning as in section 2 of the Criminal Code.
“person”
« personne »
“person” means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind.
“personal use”
« usage personnel »
“personal use”, in relation to the use of a good by an individual, means the use of the good by the individual or by others at the individual’s expense. It does not include the sale or other commercial use of the good.
“prescribed”
Version anglaise seulement“prescribed” means
(a) in the case of a form or the manner of filing a form, authorized by the Minister;
(b) in the case of the information to be given on or with a form, specified by the Minister; and
(c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation.
“produce”
« production »
“produce” means
(a) in respect of spirits, to bring into existence by distillation or other process or to recover; or
(b) in respect of wine, to bring into existence by fermentation.
“raw leaf tobacco”
« tabac en feuilles »
“raw leaf tobacco” means unmanufactured tobacco or the leaves and stems of the tobacco plant.
“record”
« registre »
“record” means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device.
“registered user”
« utilisateur autorisé »
“registered user” means a person who holds a user’s registration issued under section 16.
“responsible”
« responsable »
“responsible”, in relation to a person, means that the person is responsible for bulk alcohol in accordance with sections 104 to 121.
“sale price”
« prix de vente »
“sale price”, in respect of cigars, means the total of
(a) the amount charged as the price for the cigars before an amount payable in respect of a tax under Part IX of the Excise Tax Act is added,
(b) the amount charged as the price for or in respect of the container in which the cigars are contained,
(c) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale of the cigars in addition to the amount charged as the price, whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter, and
(d) the amount of duty imposed on the cigars under section 42.
“SDA registrant”
« détenteur autorisé d’alcool spécialement dénaturé »
“SDA registrant” means a person who holds a specially denatured alcohol registration issued under section 18.
“special container”
« contenant spécial »
“special container” means
(a) in respect of spirits, a container of a capacity of more than 100 L but not more than 1,500 L; and
(b) in respect of wine, a container of a capacity of more than 100 L.
“special duty”
« droit spécial »
“special duty” means
(a) in respect of a tobacco product, a special duty imposed under subsection 53(1), 54(2) or 56(1); and
(b) in respect of imported spirits, the special duty imposed under subsection 133(1).
“special excise warehouse”
« entrepôt d’accise spécial »
“special excise warehouse” means the premises of a special excise warehouse licensee that are specified by the Minister as the special excise warehouse of the licensee.
“special excise warehouse licensee”
« exploitant agréé d’entrepôt d’accise spécial »
“special excise warehouse licensee” means a person who holds a special excise warehouse licence issued under section 20.
“specially denatured alcohol”
« alcool spécialement dénaturé »
“specially denatured alcohol” means any prescribed grade of specially denatured alcohol made from spirits in accordance with the prescribed specification for that grade.
“specified premises”
« local déterminé »
“specified premises”, in respect of a licensed user, means the premises of the licensed user that are specified by the Minister under subsection 23(3).
“spirits”
« spiritueux »
“spirits” means any material or substance containing more than 0.5% absolute ethyl alcohol by volume nother than
(a) wine;
(b) beer;
(c) vinegar;
(d) denatured alcohol;
(e) specially denatured alcohol;
(f) an approved formulation; or
(g) any product containing or manufactured from a material or substance referred to in paragraphs (b) to (f) that is not consumable as a beverage.
“spirits licensee”
« titulaire de licence de spiritueux »
“spirits licensee” means a person who holds a spirits licence issued under section 14.
“stamped”
« estampillé »
“stamped”, in respect of a tobacco product, means that all prescribed information in a prescribed format is, in the prescribed manner, stamped, impressed, printed or marked on, indented into or affixed to the product or its container to indicate that duty, other than special duty, has been paid on the product.
“sufferance warehouse”
« entrepôt d’attente »
“sufferance warehouse” has the same meaning as in subsection 2(1) of the Customs Act.
“sufferance warehouse licensee”
« exploitant agréé d’entrepôt d’attente »
“sufferance warehouse licensee” means a person licensed under the Customs Act to operate a sufferance warehouse.
“take for use”
« utilisation pour soi »
“take for use”, in respect of alcohol, means to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol.
“Tax Court”
« Cour de l’impôt »
“Tax Court” means the Tax Court of Canada.
“tobacco dealer”
« commerçant de tabac »
“tobacco dealer” means a person, other than a tobacco licensee, who
(a) purchases for resale, sells or offers to sell raw leaf tobacco on which duty is not imposed under this Act; and
(b) does not take physical possession of the tobacco.
“tobacco licensee”
« titulaire de licence de tabac »
“tobacco licensee” means a person who holds a tobacco licence issued under section 14.
“tobacco marking”
« mention obligatoire »
“tobacco marking” means prescribed information that is required under this Act to be printed on or affixed to a container of tobacco products that are not required under this Act to be stamped.
“tobacco product”
« produit du tabac »
“tobacco product” means manufactured tobacco, packaged raw leaf tobacco or cigars.
“tobacco stick”
« bâtonnet de tabac »
“tobacco stick” means any roll or tubular construction of tobacco intended for smoking, other than a cigar, that requires further preparation to be consumed. If a tobacco stick exceeds 90 mm in length or 800 mg, each portion of 60 mm or less or each portion of 650 mg or less, respectively, is considered to be a separate stick.
“wine”
« vin »
“wine” means
(a) a beverage, containing more than 0.5% absolute ethyl alcohol by volume, that is produced without distillation, other than distillation to reduce the absolute ethyl alcohol content, by the alcoholic fermentation of
(i) an agricultural product other than grain,
(ii) a plant or plant product, other than grain, that is not an agricultural product, or
(iii) a product wholly or partially derived from an agricultural product or plant or plant product other than grain;
(b) sake; and
(c) a beverage described by paragraph (a) or (b) that is fortified not in excess of 22.9% absolute ethyl alcohol by volume.
“wine licensee”
« titulaire de licence de vin »
“wine licensee” means a person who holds a wine licence issued under section 14.
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