Special Excise Warehouses

Marginal note:Issuance of licence

• 20. (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative a tobacco product manufactured by the licensee.

• Marginal note:Single licence

  (2) The Minister shall not issue to the same person more than one special excise warehouse licence.

• Marginal note:Licence limited to one premises

  (3) The Minister shall not specify more than one premises of a special excise warehouse licensee as a special excise warehouse.

Marginal note:Return of tobacco products

• 21. (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative a tobacco product manufactured by the tobacco licensee,

  • (a) the person shall immediately return the tobacco product of that licensee that is stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and

  • (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.

• Marginal note:Cancellation

  (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative a tobacco product.

Duty Free Shops

Marginal note:Issuance of licence

22. Subject to the regulations, the Minister may, on application, issue to a person who is licensed under the Customs Act to operate a duty free shop a licence authorizing the person to possess and sell imported manufactured tobacco that is subject to a special duty under section 53.

General

Marginal note:Refusal to issue licence or registration

• 23. (1) The Minister may, for any reason the Minister considers sufficient in the public interest, refuse to issue a licence or registration.

• Marginal note:Amendment or renewal

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence or registration.

• Marginal note:Conditions imposed by Minister

  (3) On issuing a licence or registration, or at any later time, the Minister

  • (a) may, subject to the regulations, specify the activities that may be carried on under the licence or registration and the premises where those activities may be carried on;

  • (b) shall, in the case of a spirits licence or a tobacco licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

  • (c) may impose any other conditions that the Minister considers appropriate with respect to the carrying on of activities under the licence or registration.

Marginal note:Compliance with Act

24. A licensee or registrant shall not carry on any activity under their licence or registration otherwise than in accordance with this Act.

PART 3TOBACCO

Regulation of Tobacco

Marginal note:Manufacturing tobacco product without a licence prohibited

• 25. (1) No person shall, other than in accordance with a tobacco licence issued to the person, manufacture a tobacco product.

• Marginal note:Deemed manufacturer

  (2) A person who, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacture of a tobacco product is deemed to be manufacturing the tobacco product and the other person is deemed not to be manufacturing the tobacco product.

• Marginal note:Exception — manufacturing for personal use

  (3) An individual who is not a tobacco licensee may manufacture a tobacco product

  • (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the product is for their personal use; or

  • (b) from raw leaf tobacco grown on land on which the individual resides, if

    • (i) the product is for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and

    • (ii) the quantity of product manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.

Marginal note:Tobacco dealer

26. No person shall carry on the activity of a tobacco dealer except in accordance with a tobacco dealer’s licence issued to the person.

Marginal note:Unlawful packaging or stamping

27. No person shall package or stamp any raw leaf tobacco or tobacco product unless the person

• (a) is a tobacco licensee; or

• (b) is the importer or owner of the tobacco or product and it has been placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Unlawful removal

• 28. (1) Except as permitted under section 40, no person shall remove raw leaf tobacco or a tobacco product from the premises of a tobacco licensee unless the tobacco or product is packaged and

  • (a) if the product is intended for the duty-paid market, it is stamped; or

  • (b) if the product is not intended for the duty-paid market, all tobacco markings that are required under this Act to be printed on or affixed to its container are so printed or affixed.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a tobacco licensee who removes from their premises

  • (a) raw leaf tobacco for return to a tobacco grower, for delivery to another tobacco licensee or for export; or

  • (b) partially manufactured tobacco for delivery to another tobacco licensee or for export.

Marginal note:Prohibition — certain tobacco products for sale, etc.

29. No person shall purchase or receive for sale a tobacco product

• (a) from a manufacturer who the person knows, or ought to know, is not a tobacco licensee;

• (b) that is required under this Act to be packaged and stamped unless it is so packaged and stamped; or

• (c) that the person knows, or ought to know, is fraudulently stamped.

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

• 30. (1) No person shall dispose of, sell, offer for sale, purchase or have in their possession raw leaf tobacco unless the tobacco is packaged and stamped.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a person who is a tobacco licensee;

  • (b) the possession of raw leaf tobacco

    • (i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse, or

    • (ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province; or

  • (c) the sale, offer for sale or purchase of raw leaf tobacco by a licensed tobacco dealer.

Marginal note:Exceptions to sections 26 and 30

31. A tobacco grower does not contravene section 26 or 30 by reason only that the grower deals in or has in their possession raw leaf tobacco

• (a) grown by the grower on their property for sale to a tobacco licensee or a licensed tobacco dealer or for other disposition to a tobacco licensee, if the tobacco is either on the grower’s property or is being transported by the grower

  • (i) in connection with the curing of the tobacco,

  • (ii) for delivery to or return from a tobacco licensee, or

  • (iii) for delivery to or return from a body established under provincial law for the marketing of raw leaf tobacco grown in the province;

• (b) grown by any other person, if the grower operates a tobacco drying kiln on the grower’s property and the grower’s possession is solely for the purpose of curing the tobacco and returning it to the other person immediately after completion of the curing process or exporting it in accordance with paragraph (c); or

• (c) that is to be exported, if the grower has the written approval of the Minister and complies with any conditions that the Minister considers appropriate.

Marginal note:Unlawful possession or sale of tobacco products

• 32. (1) No person shall sell, offer for sale or have in their possession a tobacco product unless it is stamped.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a tobacco product by

  • (a) a tobacco licensee at the place of manufacture of the product or at the excise warehouse of the licensee;

  • (b) in the case of cigars or imported manufactured tobacco, an excise warehouse licensee at the excise warehouse of the licensee;

  • (c) a special excise warehouse licensee at the special excise warehouse of the licensee, if the tobacco product is one that the licensee is permitted under this Act to distribute;

  • (d) a prescribed person who is transporting the product under prescribed circumstances and conditions;

  • (e) in the case of an imported tobacco product, a customs bonded warehouse licensee or a sufferance warehouse licensee in their warehouse;

  • (f) in the case of cigars, a duty free shop licensee in their duty free shop;

  • (g) in the case of imported manufactured tobacco, a duty free shop licensee in their duty free shop if the licensee holds a licence issued under section 22;

  • (h) an accredited representative for their personal or official use;

  • (i) in the case of cigars or imported manufactured tobacco, a person as ships’ stores if the acquisition and possession of the product by that person are in accordance with the Ships’ Stores Regulations;

  • (j) an individual who has imported the product for their personal use in quantities not in excess of prescribed limits; or

  • (k) an individual who has manufactured the product in accordance with subsection 25(3).

• Marginal note:Exceptions — sale or offer for sale

  (3) Subsection (1) does not apply where

  • (a) a tobacco licensee sells or offers to sell a tobacco product that is exported by the licensee in accordance with this Act;

  • (b) a tobacco licensee sells or offers to sell

    • (i) a tobacco product to a special excise warehouse licensee, if the product is one that the special excise warehouse licensee is permitted under this Act to distribute,

    • (ii) a tobacco product to an accredited representative for their personal or official use,

    • (iii) cigars to an excise warehouse licensee for delivery as ships’ stores in accordance with the Ships’ Stores Regulations,

    • (iv) cigars to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (v) cigars as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (c) a special excise warehouse licensee sells or offers to sell a tobacco product to an accredited representative for their personal or official use, if the product is one that the licensee is permitted under this Act to distribute;

  • (d) an excise warehouse licensee sells or offers to sell

    • (i) an imported tobacco product that is exported by the licensee in accordance with this Act,

    • (ii) an imported tobacco product to an accredited representative for their personal or official use or to a duty free shop, or

    • (iii) cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (e) a duty free shop licensee sells or offers to sell cigars in accordance with the Customs Act;

  • (f) a duty free shop licensee who holds a licence issued under section 22 sells or offers to sell imported manufactured tobacco in accordance with the Customs Act;

  • (g) a customs bonded warehouse licensee sells or offers to sell an imported tobacco product that is exported by the licensee in accordance with this Act;

  • (h) a customs bonded warehouse licensee sells or offers to sell an imported tobacco product

    • (i) to an accredited representative for their personal or official use,

    • (ii) to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (iii) as ships’ stores in accordance with the Ships’ Stores Regulations; and

  • (i) a person sells or offers for sale cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations.