Marginal note:Duty payable on packaged spirits taken for use

128. Subject to sections 144 to 146, if non-duty-paid packaged spirits that are in the possession of an excise warehouse licensee or a licensed user are taken for use, duty is payable at the time the spirits are taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged spirits

• 129. (1) Duty is payable on non-duty-paid packaged spirits that have been received by an excise warehouse licensee or a licensed user but cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the spirits cannot be accounted for.

Marginal note:Fortifying wine

• 130. (1) A licensed user who is also a wine licensee may use bulk spirits to fortify wine to an alcoholic strength not in excess of 22.9% absolute ethyl alcohol by volume.

• Marginal note:Duty relieved on spirits

  (2) The duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were used to fortify the wine is relieved.

Marginal note:Blending wine with spirits

• 131. (1) A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.

• Marginal note:Blending deemed to be production of spirits

  (2) The resulting spirits are deemed to be produced at the time of the blending and the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved.

Marginal note:Duty relieved — DA and SDA

132. If a spirits licensee denatures bulk spirits into denatured alcohol or specially denatured alcohol, the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved.

Marginal note:Imposition of special duty

• 133. (1) In addition to the duty levied under section 21.1 or 21.2 of the Customs Tariff, a special duty is imposed on imported spirits delivered to or imported by a licensed user at the rate set out in Schedule 5.

• Marginal note:Bulk spirits

  (2) If a spirits licensee imports bulk spirits that are delivered to a licensed user, the special duty is payable at the time the spirits are delivered to the licensed user and is payable

  • (a) by the spirits licensee who is responsible for the spirits at that time;

  • (b) if the licensed user is responsible for the spirits at that time and there was a spirits licensee who was responsible immediately before that time, by that spirits licensee; or

  • (c) if the licensed user is responsible for the spirits at that time and there was not a spirits licensee who was responsible immediately before that time, by the spirits licensee who delivered the spirits.

• Marginal note:Packaged spirits

  (3) If imported packaged spirits or imported spirits that have been packaged in Canada are removed from an excise warehouse for delivery to a licensed user, the special duty is payable by the excise warehouse licensee at the time the spirits are removed from the excise warehouse.

• Marginal note:Spirits imported by licensed user

  (4) If bulk or packaged spirits are imported by a licensed user, the special duty

  • (a) is payable by the licensed user at the time the spirits are imported; and

  • (b) shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duty were a duty levied on the spirits under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Imposition — bulk wine taken for use

• 134. (1) Duty is imposed on bulk wine that is taken for use at the rates set out in Schedule 6.

• Marginal note:Payable by responsible person

  (2) Subject to sections 144 to 146, the duty is payable at the time the wine is taken for use and is payable by the person who is responsible for the wine at that time.

• Marginal note:Wine produced for personal use

  (3) Subsection (1) does not apply to wine produced by an individual for their personal use and that is consumed in the course of that use.

Marginal note:Imposition — wine packaged in Canada

• 135. (1) Duty is imposed on wine that is packaged in Canada at the rates set out in Schedule 6.

• Marginal note:Wine produced for personal use and by small producers

  (2) Subsection (1) does not apply to wine that is

  • (a) produced and packaged by an individual for their personal use; or

  • (b) produced by a wine licensee and packaged by the licensee during a fiscal month of the licensee if the sales by the licensee of products subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the 12 fiscal months preceding that fiscal month did not exceed $50,000.

• Marginal note:Time of imposition

  (3) The duty is imposed at the time the wine is packaged. It is also payable at that time unless the wine is entered into an excise warehouse immediately after packaging.

• Marginal note:Payable by responsible person

  (4) The duty is payable by the person who is responsible for the wine immediately before it is packaged.

• Marginal note:Wine licensee ceases to be liable for duty

  (5) If an excise warehouse licensee becomes liable under section 140 for duty on the wine, the person required under subsection (4) to pay the duty ceases to be liable to pay it.

Marginal note:Duty payable on removal from warehouse

136. If packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.

Marginal note:Duty payable on packaged wine taken for use

137. Subject to sections 144 to 146, if non-duty-paid packaged wine that is in the possession of an excise warehouse licensee or a licensed user is taken for use, duty is payable on the wine at the time it is taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged wine

• 138. (1) Duty is payable on non-duty-paid packaged wine that has been received by an excise warehouse licensee or a licensed user but that cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the wine cannot be accounted for.

Marginal note:Duty on wine in marked special container relieved

• 139. (1) Duty imposed under subsection 135(1) is relieved on wine that is contained in a marked special container of wine from which the marking has been removed in accordance with section 156.

• Marginal note:Duty on returned wine relieved

  (2) Duty imposed under subsection 135(1) or levied under subsection 21.2(2) of the Customs Tariff is relieved on wine that is returned to the bulk wine inventory of a wine licensee in accordance with section 157.

Liability of Excise Warehouse Licensees and Licensed Users

Marginal note:Non-duty-paid packaged alcohol

140. If non-duty-paid packaged alcohol is entered into an excise warehouse immediately after being packaged, the excise warehouse licensee is liable for the duty on the alcohol at the time it is entered into the warehouse.

Marginal note:Imported packaged alcohol

141. If, in accordance with subsection 21.2(3) of the Customs Tariff, imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee or licensed user who imported it, the excise warehouse licensee or licensed user is liable for the duty on the alcohol.

Marginal note:Transfer between warehouse licensees

• 142. (1) If non-duty-paid packaged alcohol is removed from the excise warehouse of an excise warehouse licensee (in this subsection referred to as the “transferor”) to the excise warehouse of another excise warehouse licensee, at the time the alcohol is entered into the warehouse of the other licensee,

  • (a) the other licensee becomes liable for the duty on the alcohol; and

  • (b) the transferor ceases to be liable for the duty.

• Marginal note:Transfer to licensed user

  (2) If non-duty-paid packaged alcohol is removed from an excise warehouse to the specified premises of a licensed user, at the time the alcohol is entered into those premises,

  • (a) the licensed user becomes liable for the duty on the alcohol; and

  • (b) the excise warehouse licensee ceases to be liable for the duty.

• Marginal note:Transfer from licensed user

  (3) If non-duty-paid packaged alcohol is removed from the specified premises of a licensed user to an excise warehouse, at the time the alcohol is entered into the warehouse,

  • (a) the excise warehouse licensee becomes liable for the duty on the alcohol; and

  • (b) the licensed user ceases to be liable for the duty.