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Excise Act (R.S.C., 1985, c. E-14)

Full Document:  

Act current to 2024-04-01 and last amended on 2023-06-22. Previous Versions

PART VTobacco and Cigars and Manufacturers Thereof (continued)

Duties

Marginal note:Duties of excise on manufactured and Canadian raw leaf tobacco

  • 200 (1) There shall be imposed, levied and collected on tobacco and cigars manufactured in Canada and on Canadian raw leaf tobacco the duties of excise set out in the schedule, payable

    • (a) in the case of manufactured tobacco or cigars, by the manufacturer thereof, at the time the tobacco or cigars are completely manufactured; and

    • (b) in the case of Canadian raw leaf tobacco, by the tobacco packer at the time the Canadian raw leaf tobacco is tied or otherwise packaged for consumption.

  • Marginal note:Not considered paid until received

    (2) The duties payable under subsection (1) shall be paid to the Receiver General at such time and in such manner as is prescribed by the regulations, and shall not be considered to have been paid until they are received by the Receiver General.

  • R.S., 1985, c. E-14, s. 200
  • 1993, c. 25, s. 40

Tobacco Packaging, Stamping and Marking

Marginal note:Packaging and stamping of manufactured tobacco and cigars manufactured in Canada

  • 201 (1) Before manufactured tobacco, or cigars, that are manufactured in Canada are entered for consumption under this Act,

    • (a) they shall be put up and prepared by their manufacturer in packages that have printed on them such information as is prescribed by the ministerial regulations; and

    • (b) the manufactured tobacco or cigars and their packages, cartons, boxes, crates and other containers shall be stamped with tobacco stamps or cigar stamps by the manufacturer as required by the ministerial regulations.

  • Marginal note:Packaging and stamping of imported manufactured tobacco and cigars

    (2) Subject to subsection (3), before imported manufactured tobacco or imported cigars are released under Part II of the Customs Act,

    • (a) they shall be put up and prepared by the importer in packages that have printed on them such information as is prescribed by the ministerial regulations; and

    • (b) the manufactured tobacco or cigars and their packages, cartons, boxes, crates and other containers shall be stamped with tobacco stamps or cigar stamps by the importer as required by the ministerial regulations.

  • Marginal note:Exception for small importations

    (3) Subsection (2) does not apply with respect to manufactured tobacco or cigars that are imported by an individual in accordance with the Customs Act in quantities not in excess of such quantities as are prescribed by the ministerial regulations if the manufactured tobacco or cigars are for consumption by the individual or by another person at the expense of the individual.

  • Marginal note:Packaging and stamping of Canadian raw leaf tobacco

    (4) All Canadian raw leaf tobacco that is to be entered for consumption under this Act shall be put up and prepared in packages by the tobacco packer before it is entered for consumption, and the packages shall be stamped with tobacco stamps by the tobacco packer in accordance with the ministerial regulations.

  • R.S., 1985, c. E-14, s. 201
  • 1993, c. 25, s. 40
  • 1994, c. 37, s. 5(F)
  • 1999, c. 17, s. 144(E)
  • 2001, c. 16, s. 12

Definition of tobacco product

  • 202 (1) In this section, tobacco product means manufactured tobacco or cigars.

  • Marginal note:Marking of packages — product manufactured in Canada

    (2) Subject to subsections (4) and (5), all packages, cartons, boxes, crates and other containers containing tobacco products manufactured in Canada that are not to be entered for consumption shall, at the time they are entered into a bonding warehouse by the manufacturer of the tobacco products, have printed on them or affixed to them such tobacco markings as are prescribed by the regulations and such other information as is prescribed by the ministerial regulations.

  • Marginal note:Marking of packages — imported products

    (3) Subject to subsection (4), before packages, cartons, boxes, crates and other containers containing tobacco products imported into Canada are removed

    • (a) to a duty free shop licensed as such under the Customs Act for sale to persons who are about to leave Canada,

    • (b) for sale to accredited representatives, or

    • (c) to a bonded warehouse licensed as such under the Customs Tariff

      • (i) for removal to a duty free shop licensed as such under the Customs Act for sale to persons who are about to leave Canada,

      • (ii) for sale to accredited representatives, or

      • (iii) for delivery as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act,

    they shall have printed on them or affixed to them such tobacco markings as are prescribed by the regulations and such other information as is prescribed by the ministerial regulations.

  • Marginal note:Exemption for prescribed tobacco product

    (4) Subsections (2) and (3) do not apply with respect to a tobacco product of a particular brand if the tobacco product of the particular brand is not commonly sold in Canada and is prescribed in the regulations made for the purposes of this subsection.

  • Marginal note:Exemption for prescribed cigarette

    (5) Subsection (2) does not apply with respect to cigarettes of a particular type or formulation, manufactured in Canada and exported from Canada under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada, if

    • (a) cigarettes of the particular type or formulation exported under that brand are prescribed in the regulations made for the purposes of this subsection; and

    • (b) cigarettes of that particular type or formulation have never been sold in Canada by the manufacturer under that brand or any other brand.

  • Marginal note:Distinguishing different products

    (6) For the purposes of subsection (5), a cigarette of a particular type or formulation may be considered to be different from another cigarette sold under the same brand if it is reasonable to do so having regard to the physical characteristics of the cigarettes before and during consumption.

  • Marginal note:Regulations

    (7) The Governor in Council may make regulations

    • (a) prescribing a tobacco product of a particular brand, for the purposes of subsection (4); and

    • (b) prescribing cigarettes of a particular type or formulation exported under a particular brand, for the purposes of subsection (5).

  • R.S., 1985, c. E-14, s. 202
  • 1993, c. 25, s. 40
  • 1995, c. 41, s. 110
  • 1999, c. 17, s. 144(E)
  • 2002, c. 22, s. 425(F)

  • 203 (1) and (2) [Repealed, 1993, c. 25, s. 41]

  • Marginal note:Penalties

    (3) The owner or importer of manufactured tobacco and cigars imported into Canada shall be subject to all the penal provisions prescribed in respect of manufacturers of tobacco or cigars manufactured in Canada.

  • (4) [Repealed, 1993, c. 25, s. 41]

  • R.S., 1985, c. E-14, s. 203
  • 1993, c. 25, s. 41

Marginal note:If not stamped or marked

204 All imported manufactured tobacco and cigars that, when reported under the Customs Act, are not stamped or marked as required by this Act and the ministerial regulations or by this Act and the regulations shall be placed in a warehouse licensed as a sufferance warehouse under the Customs Act.

  • R.S., 1985, c. E-14, s. 204
  • R.S., 1985, c. 1 (2nd Supp.), s. 186
  • 1993, c. 25, s. 42
  • 1999, c. 17, s. 144(E)

205 and 206 [Repealed, 1993, c. 25, s. 42]

Marginal note:Re-working or destruction of tobacco and cigars

207 Manufactured tobacco and cigars that have become unfit for use may be re-worked or destroyed in accordance with ministerial regulations, and those regulations may provide for the refunding to the manufacturer, in whole or in part, of the duty paid thereon.

  • R.S., 1985, c. E-14, s. 207
  • R.S., 1985, c. 7 (2nd Supp.), s. 67
  • 1999, c. 17, s. 144(E)

Marginal note:Disposal of raw material

208 All raw leaf tobacco, stems, cuttings, liquorice, sugar, gum or other raw material shall, when brought into, used in or removed from a tobacco or cigar manufactory, be dealt with in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 208
  • 1999, c. 17, s. 144(E)

209 [Repealed, 1993, c. 25, s. 43]

Marginal note:Sale of cigars

  • 210 (1) Cigars, when put up in packages of less than ten cigars, shall not be sold or removed from any licensed factory in lots of less than one hundred cigars.

  • Marginal note:Sale of tobacco or cigarettes

    (2) No less quantity than one-half kilogram (0.5 kg) of manufactured tobacco or one hundred cigarettes shall be sold or removed from any licensed factory.

  • R.S., c. E-12, s. 214
  • 1980-81-82-83, c. 68, s. 68

Marginal note:Stamp regulations

211 The Minister may make regulations prescribing the form of stamps to be impressed on, printed on, marked on, indented into or affixed to Canadian raw leaf tobacco, cigarettes, cigars and packages, cartons, boxes, crates and other containers containing manufactured tobacco or cigars, the information to be provided on the stamps and the manner in which the stamps are to be affixed.

  • R.S., 1985, c. E-14, s. 211
  • 1993, c. 25, s. 44
  • 1994, c. 37, s. 6
  • 1999, c. 17, s. 144(E)
  • 2001, c. 16, s. 13

Marginal note:Tobacco stems and sweepings, etc.

212 All stems, sweepings or other waste or refuse tobacco that are found in a tobacco or cigar manufactory and are not intended to be used shall be disposed of under ministerial regulations.

  • R.S., 1985, c. E-14, s. 212
  • 1999, c. 17, s. 144(E)

Regulations

Marginal note:Regulations

213 The Governor in Council may, subject to this Act, make such regulations as to him seem necessary concerning imported or domestic raw leaf tobacco and tobacco and cigars manufactured in or imported into Canada

  • (a) for warehousing raw leaf tobacco;

  • (b) for destroying such raw leaf tobacco as is not entered for exportation or manufacture;

  • (c) for removing raw leaf tobacco from one warehouse to another;

  • (d) for causing accounts to be kept by tobacco and cigar manufacturers of all raw leaf tobacco received by them and subsequently disposed of by them by removal, sale or otherwise;

  • (e) for determining the manner in which the computation of the mass of tobacco with reference to the standard established by this Act shall be made;

  • (f) for the inspection of tobacco and cigars and the collection of the duty thereon, and as is deemed most effective for the prevention of frauds in the payment of that duty;

  • (g) for the manufacture and sale of Canada twist;

  • (h) for determining the time when tobacco and cigars shall be considered as completely manufactured; and

  • (i) for determining when completely manufactured tobacco and cigars shall be entered for consumption or duty ex-manufactory or be warehoused.

  • R.S., c. E-12, s. 217
  • 1980-81-82-83, c. 68, s. 70

Quantities of Tobacco and Cigars

Marginal note:Quantities

214 Quantities of tobacco and cigars shall be stated in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 214
  • 1999, c. 17, s. 144(E)

Returns

Marginal note:Returns

215 Every tobacco or cigar manufacturer shall render monthly to the collector a just and true account, in writing, extracted from the books kept as provided by this Act, and the account shall exhibit such particulars as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 215
  • 1999, c. 17, s. 144(E)

Bonding and Warehousing

Marginal note:Warehousing and ex-warehousing of tobacco and cigars

216 Except for export or ship’s stores, no less quantity than fifty kilograms (50 kg) of manufactured tobacco, two thousand cigars or two thousand cigarettes shall be warehoused or ex-warehoused by one entry.

  • R.S., 1985, c. E-14, s. 216
  • 2002, c. 22, s. 425(F)

Marginal note:Stowage of packages in warehouse

217 All boxes, caddies or packages of manufactured tobacco and cigars shall be arranged and stowed in warehouse in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 217
  • 1999, c. 17, s. 144(E)

Marginal note:No refund on tobacco ex-warehoused

218 The duty paid on manufactured tobacco and cigars entered for consumption shall not be refunded by way of drawback or otherwise on the exportation of the tobacco or cigars out of Canada.

  • R.S., c. E-12, s. 223

Marginal note:Removal in bond

219 Manufactured tobacco and cigars intended for export or removal in bond may be removed from the manufactory in such manner and under such restrictions, bond or other security as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 219
  • 1999, c. 17, s. 144(E)

Canadian Leaf Tobacco

Marginal note:Tobacco grown for private use

220 A person who grows tobacco on his own land or property and manufactures the tobacco into common Canada twist or cut tobacco solely for the use of himself and such members of his family as are resident with him on the farm or premises on which the tobacco was grown, and not for sale, does not require a licence for so doing, nor is the tobacco so manufactured subject to excise duty, but the quantity so manufactured in any one year shall not exceed fifteen kilograms (15 kg) for each adult member of the family resident on the farm or premises.

  • R.S., c. E-12, s. 225
  • 1980-81-82-83, c. 68, s. 72

Marginal note:Licence to carry on business of tobacco packer

  • 221 (1) A licence to carry on the trade or business of a tobacco packer may be granted to any person who has complied with the requirements of this Act, if that person has, jointly with a guarantee company approved by the Minister, entered into a bond to Her Majesty in the sum of one thousand dollars.

  • Marginal note:Conditions of bond

    (2) The bond entered into under subsection (1) shall be conditioned on the rendering of all accounts, inventories, statements and returns prescribed by law and the payment of all duties and penalties that the person to whom the licence is to be granted becomes liable to render or pay under this Act, and on the person faithfully complying with all the requirements of this Act according to their true intent and meaning, with regard to the accounts, inventories, statements, returns, duties and penalties, as well as to all other matter and things whatever.

  • R.S., c. E-12, s. 226

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