Fall Economic Statement Implementation Act, 2022 (S.C. 2022, c. 19)
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Assented to 2022-12-15
PART 2Amendments to the Excise Act, 2001 and Other Related Texts (continued)
2002, c. 22Excise Act, 2001 (continued)
95 Section 158.13 of the Act is replaced by the following:
Marginal note:Packaging and stamping of cannabis
158.13 A particular cannabis licensee shall not enter a cannabis product into the duty-paid market unless
(a) the cannabis product is packaged;
(b) the package has printed on it prescribed information;
(c) the cannabis product is stamped — using a cannabis excise stamp that has been issued to the particular cannabis licensee and that indicates that cannabis duty has been paid — by
(i) the particular cannabis licensee, or
(ii) another cannabis licensee if prescribed conditions are met;
(d) if the cannabis product is to be entered in the duty-paid market of a specified province, the cannabis product is stamped — using a cannabis excise stamp that has been issued to the particular cannabis licensee and that indicates that additional cannabis duty in respect of the specified province has been paid — by
(i) the particular cannabis licensee, or
(ii) another cannabis licensee if prescribed conditions are met; and
(e) the particular cannabis licensee is responsible for the cannabis product immediately before it is stamped.
96 Subsections 158.19(2) to (4) of the Act are replaced by the following:
Marginal note:Imposition — ad valorem duty
(2) Duty is imposed on packaged and stamped cannabis products produced in Canada at the time of their delivery to a purchaser in the amount determined under section 2 of Schedule 7.
Marginal note:Duty payable
(3) The greater of the duty imposed under subsection (1) and the duty imposed under subsection (2) is payable by the cannabis licensee that is responsible for the cannabis products immediately before those products are stamped and those products are relieved of the lesser of those duties. The greater of those duties is payable at the time of the delivery of the cannabis products to a purchaser.
Marginal note:Equal duties
(4) If the amount of duty imposed under subsection (1) is equal to the amount of duty imposed under subsection (2), the duty imposed under subsection (1) is payable by the cannabis licensee that is responsible for the cannabis products immediately before those products are stamped and those products are relieved of the duty imposed under subsection (2). The duty imposed under subsection (1) is payable at the time of the delivery of the cannabis products to a purchaser.
97 Subsection 158.2(2) of the Act is replaced by the following:
Marginal note:Duty payable
(2) The duty imposed under subsection (1) is payable by the cannabis licensee that is responsible for the cannabis products immediately before those products are stamped and that duty is payable at the time of their delivery to a purchaser.
98 (1) Subsection 159.1(1) of the Act is replaced by the following:
Marginal note:Reporting period — general
159.1 (1) Subject to this section and section 159.2, the reporting period of a person is a fiscal month.
(2) Subsection (1) is deemed to have come into force on April 1, 2022.
99 (1) The Act is amended by adding the following after section 159.1:
Marginal note:Definitions
159.2 (1) The following definitions apply in this section.
- calendar quarter
calendar quarter means a period of three months beginning on the first day of January, April, July or October. (trimestre civil)
- threshold amount
threshold amount of a cannabis licensee for a calendar quarter means the amount that is the total of all duties payable under Part 4.1 by the cannabis licensee, and any person associated with the cannabis licensee, in the immediately preceding four calendar quarters. (montant déterminant)
Marginal note:Reporting period — calendar quarters
(2) On application by a cannabis licensee, the Minister may, in writing, authorize the reporting periods of the cannabis licensee to be calendar quarters, beginning on the first day of a particular calendar quarter, if the threshold amount of the cannabis licensee for the particular calendar quarter does not exceed $1,000,000.
Marginal note:Application — form and filing
(3) An application made by a cannabis licensee under subsection (2) is to be
(a) made in prescribed form containing prescribed information; and
(b) filed with the Minister in prescribed manner on or before the last day of the first month of the calendar quarter for which the authorization is to take effect or any later day that the Minister may allow.
Marginal note:Deemed revocation
(4) An authorization under subsection (2) in respect of a cannabis licensee is deemed to be revoked at the beginning of a calendar quarter if the threshold amount of the cannabis licensee for the calendar quarter exceeds $1,000,000.
Marginal note:Revocation by Minister
(5) The Minister may revoke an authorization under subsection (2) in respect of a cannabis licensee if
(a) the cannabis licensee requests in writing that the Minister do so;
(b) the cannabis licensee fails to comply with the Act; or
(c) the Minister considers that the authorization is no longer required.
Marginal note:Notice of revocation
(6) If the Minister revokes an authorization in respect of a cannabis licensee, the Minister shall send a notice in writing of the revocation to the cannabis licensee and shall specify in the notice the fiscal month of the cannabis licensee for which the revocation becomes effective.
Marginal note:Deemed reporting period on revocation
(7) If a revocation under subsection (4) or (5) of an authorization under subsection (2) in respect of a cannabis licensee becomes effective before the last day of a calendar quarter, the period beginning on the first day of the calendar quarter and ending immediately before the first day of the fiscal month of the cannabis licensee for which the revocation becomes effective is deemed to be a reporting period of the cannabis licensee.
(2) Subsection (1) is deemed to have come into force on April 1, 2022.
100 The portion of section 234.1 of the Act before the formula is replaced by the following:
Marginal note:Contravention of section 158.02, 158.1, 158.11 or 158.12
234.1 Every person that contravenes section 158.02, 158.1, 158.11 or 158.12 is liable to a penalty equal to the amount determined by the formula
101 Subsection 304(1) of the Act is amended by adding the following after paragraph (n):
(n.1) respecting the packaging or stamping, and entry into the duty-paid market, by a cannabis licensee of cannabis products that are owned or produced by another cannabis licensee, subject to an authorization of the Minister and any conditions that the Minister considers appropriate, and prescribing joint and several, or solidary, liability or penalties in respect of those cannabis products;
2022, c. 10Budget Implementation Act, 2022, No. 1
102 (1) The portion of subsection 128(3) of the Budget Implementation Act, 2022, No. 1 before paragraph (a) is replaced by the following:
(3) Sections 158.42 to 158.47 and 158.49 and subsection 158.5(2) of the Excise Act, 2001, as enacted by section 59, subsection 63(1) and sections 107 to 109 come into force on October 1, 2022. However, those provisions of the Excise Act, 2001, subsection 63(1) and sections 107 to 109 do not apply before 2023 in respect of
(2) Section 128 of the Act is amended by adding the following after subsection (3):
(3.1) Sections 158.54 to 158.56, 158.6 and 158.61 of the Excise Act, 2001, as enacted by section 59, come into force on October 1, 2022. However, those sections of the Excise Act, 2001 do not apply in respect of
(a) vaping products manufactured in Canada that are packaged before October 1, 2022 and that are not stamped; and
(b) vaping products that are imported into Canada or released (as defined in subsection 2(1) of the Customs Act) before October 1, 2022 and that are not stamped.
SOR/86-991Storage of Goods Regulations
103 (1) Subsection 3(4) of the Storage of Goods Regulations is replaced by the following:
(4) For the purposes of subsection 39.1(1) of the Act, firearms, prohibited ammunition, prohibited devices, prohibited or restricted weapons, tobacco products and vaping products are goods of a prescribed class that are forfeit if they are not removed from a customs office within 14 days after the day on which they were reported under section 12 of the Act.
(2) Subsection (1) is deemed to have come into force on October 1, 2022.
SOR/2003-115Regulations Respecting Excise Licences and Registrations
104 Subparagraph 2(2)(b)(i) of the Regulations Respecting Excise Licences and Registrations is replaced by the following:
(i) failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol, tobacco products, cannabis products or vaping products or any regulations made under it, or
105 Section 4 of the Regulations is replaced by the following:
4 A licence is valid for the period specified in the licence, which period
(a) in the case of a cannabis licence issued to a person, shall end on or before the date of expiry of the licence or permit issued to the person under subsection 62(1) of the Cannabis Act and shall not exceed five years;
(b) in the case of a vaping product licence, shall not exceed three years; or
(c) in any other case, shall not exceed two years.
106 (1) Paragraph 5(2)(a) of the Regulations is replaced by the following:
(a) a bank draft;
(2) Paragraph 5(2)(c) of the Regulations is replaced by the following:
(c) a Canada Post money order; or
107 Subsection 10(1) of the Regulations is replaced by the following:
10 (1) The grounds for the suspension of a licence or registration by the Minister are that the licensee or registrant
(a) fails to meet any of the applicable requirements of section 2, 3, 6, 7 or 13;
(b) fails to meet the conditions of the licence or registration;
(c) is bankrupt;
(d) ceases to carry on the business for which the licence or registration was issued;
(e) fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls of alcohol, tobacco products, cannabis products or vaping products, or any regulations made under it; or
(f) acts to defraud His Majesty.
108 Paragraph 12(1)(e) of the Regulations is replaced by the following:
(e) fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol, tobacco products, cannabis products or vaping products, or any regulations made under it; or
SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations
109 (1) The definition case in section 1 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is replaced by the following:
- case
case means a corrugated cardboard box in which packages or cartons of tobacco products, or packages of vaping products, are packed primarily for the purpose of transport and protection against damage. (caisse)
(2) Subsection (1) is deemed to have come into force on October 1, 2022.
110 (1) The Regulations are amended by adding the following after section 3.5:
3.6 For the purposes of paragraph 158.46(b) of the Act, the prescribed information is
(a) the vaping product licensee’s name and address;
(b) the vaping product licensee’s licence number; or
(c) if the vaping product is packaged by the vaping product licensee for another person, the person’s name and the address of their principal place of business.
3.7 For the purposes of paragraph 158.47(1)(a) of the Act, the prescribed information is
(a) the name and address of the manufacturer that packaged the vaping product;
(b) if the vaping product was imported by a vaping product licensee, the licensee’s name and address or vaping product licence number; or
(c) if the vaping product was imported by a person other than a vaping product licensee, the person’s name and address.
3.8 For the purposes of paragraphs 158.46(b) and 158.47(1)(a) of the Act, the following information is prescribed for cases of vaping products:
(a) the number of packages in the case; and
(b) the volume of the vaping substance in liquid form, and the weight of the vaping substance in solid form, contained in each package.
3.9 For the purposes of subsections 158.5(1) and (2) of the Act, the prescribed information is
(a) for containers of vaping products manufactured in Canada, the information set out in section 3.6; and
(b) for containers of imported vaping products, the information set out in section 3.7.
(2) Subsection (1) is deemed to have come into force on October 1, 2022.
111 The Regulations are amended by adding the following after section 5:
Service Agreements in Respect of Cannabis Products
5.1 (1) For the purposes of this section, service agreement means an agreement, containing prescribed information, between a particular cannabis licensee (other than a cannabis licensee that is a producer of cannabis products solely because of their packaging of cannabis products) and another cannabis licensee under which the other cannabis licensee is to package, or affix a cannabis excise stamp to, cannabis products for the particular cannabis licensee.
(2) For the purposes of this section, a service agreement is an authorized service agreement from the effective date of its authorization under subsection (5) until the effective date of the revocation of the authorization of the service agreement under subsection (8).
(3) A cannabis licensee that is a party to a service agreement may apply to the Minister to have the service agreement authorized by the Minister for the purposes of this section.
(4) An application under subsection (3) in respect of a service agreement must
(a) be made in prescribed form containing prescribed information;
(b) include a copy of the service agreement; and
(c) be filed with the Minister in prescribed manner on or before the day that is 60 days before the proposed effective date of the authorization of the service agreement or any later day that the Minister may allow.
(5) If an application under subsection (3) in respect of a service agreement is filed with the Minister, the Minister must with all due dispatch
(a) consider the application and authorize or refuse to authorize the service agreement for the purposes of this section; and
(b) notify the applicant in writing of the decision and, if authorized, the effective date of the authorization.
(6) The Minister may, at any time, specify conditions that the Minister considers appropriate in respect of a service agreement authorized under subsection (5).
(7) If an authorized service agreement is to be amended or is, or is to be, no longer in effect, a party to the authorized service agreement must
(a) without delay so notify the Minister in writing; and
(b) if the authorized service agreement is to be amended, make an application under subsection (3) for the authorization of the amended service agreement.
(8) If the Minister is of the opinion that a party to an authorized service agreement is in contravention of the authorized service agreement, that any condition specified by the Minister under subsection (6) is not met or that the authorized service agreement is, or is to be, no longer in effect, the Minister
(a) may revoke the authorization of the service agreement; and
(b) must, if the Minister revokes the authorization of the service agreement, issue a notice of revocation of the authorization of the service agreement to each party to the service agreement specifying the effective date of the revocation.
(9) For the purposes of paragraph 158.05(2)(c) of the Act, a prescribed person is a particular cannabis licensee that is a party to an authorized service agreement and that has in their possession cannabis excise stamps that
(a) are issued to the other cannabis licensee that is a party to the authorized service agreement; and
(b) are to be affixed to a packaged cannabis product by the particular cannabis licensee in accordance with the authorized service agreement and in accordance with applicable conditions, if any, in respect of the authorized service agreement specified by the Minister under subsection (6).
(10) For the purposes of subparagraphs 158.13(c)(ii) and (d)(ii) of the Act, a prescribed condition is that the cannabis product is stamped by the other cannabis licensee in accordance with an authorized service agreement and in accordance with applicable conditions, if any, in respect of the authorized service agreement specified by the Minister under subsection (6).
- Date modified: