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Excise Act (R.S.C., 1985, c. E-14)

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Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART IIDistilleries (continued)

Licences (continued)

Marginal note:Fee for distilling and rectifying licence

 A person to whom a licence for distilling by any process is granted shall pay to the collector of the district or excise division in which the process is to be carried on under the licence a licence fee prescribed by the regulations.

  • R.S., c. E-12, s. 132
  • R.S., c. 15(1st Supp.), s. 15

Marginal note:Licence fee for chemical still

  •  (1) Subject to subsection (2), a person to whom a licence to import, manufacture, possess and use a chemical still is granted shall pay to the collector of the district or excise division in which the still is situated a licence fee prescribed by the regulations.

  • Marginal note:Exception

    (2) Any person importing, manufacturing, possessing and using a chemical still, the measured content of which does not exceed twenty-three litres (23 L), or any bona fide public hospital duly certified as such by the Department of Health importing, manufacturing, possessing and using a chemical still of any capacity, may, on registering the still at the office of the collector of the district or excise division in which it is situated, be permitted to import, manufacture, possess and use the still without payment of a licence fee or the giving of a bond, but the importation, manufacture, possession or use of the still without registration shall be deemed an importing, manufacturing, possessing or using of a still contrary to this Act.

  • R.S., 1985, c. E-14, s. 134
  • 1999, c. 31, s. 83

Duties of Excise

Marginal note:Excise duties on spirits

  •  (1) There shall be imposed, levied and collected on all spirits distilled or brought into a distillery the duties of excise set out in the schedule, which shall be paid to the collector as provided in this Act.

  • Marginal note:Drawback of duty on spirits

    (2) A drawback of ninety-nine per cent of the duty paid pursuant to subsection (1) on spirits testing not less than eighty-five per cent absolute ethyl alcohol by volume that are sold and delivered, with the approval of the Minister and in such limited quantities as are prescribed by him, may be granted, under ministerial regulations, to a distiller or to any person purchasing spirits from a board, commission or other government agency that by the law of a province is empowered to sell spirits, when the spirits are sold and delivered,

    • (a) for scientific purposes only,

      • (i) to any scientific and research laboratory in receipt annually of aid from the government of Canada or a province, or

      • (ii) to any university or other educational institution at which courses recognized by the government of the province in which the institution is situated to be of post-secondary level are taught;

    • (b) to any person for the purposes of scientific research, the results of which are regularly made available to the public without charge;

    • (c) to any bona fide public hospital or municipal health clinic certified to be such by the Department of Health, for medicinal purposes only; and

    • (d) to any health institution in receipt annually of aid from the government of Canada or a province, for medicinal and research purposes only.

  • Marginal note:Power to permit use duty free

    (3) Notwithstanding anything in this section, the Governor in Council may permit the use of spirits, duty free, in any chemical or industrial process in which the spirits are completely destroyed.

  • R.S., 1985, c. E-14, s. 135
  • 1999, c. 17, s. 144(E), c. 31, s. 84

Definition of pharmacist

  •  (1) In this section, pharmacist means a person who is registered, licensed or authorized under the law of any province to carry on the business of preparing, manufacturing, compounding or dispensing, for sale to a consumer, medicines and pharmaceutical preparations, and does in fact carry on business as a retail pharmacist.

  • Marginal note:Spirits used by pharmacist

    (2) The Minister may grant to any pharmacist a licence to use spirits in the preparation of prescriptions for medicines and pharmaceutical preparations.

  • Marginal note:Drawback

    (3) Where spirits are purchased by a pharmacist licensed under this section from a provincial liquor control board or commission or other person lawfully authorized to sell spirits and the duties otherwise imposed by law have been paid thereon, the pharmacist is entitled to a drawback of all such duty in excess of duties of excise imposed by this Act.

  • Marginal note:Licence required

    (4) No person shall receive spirits for any purpose mentioned in this section without first obtaining a licence from the Minister.

  • Marginal note:Fee for pharmacist’s licence

    (5) A pharmacist to whom a licence is granted under this section shall pay to the collector of the district or excise division in which he carries on business a licence fee prescribed by the regulations.

  • Marginal note:Bond

    (6) A licensee shall jointly with a guaranty company approved by the Minister enter into a bond to Her Majesty in the sum of one thousand dollars, which bond shall be conditioned that the licensee shall use all spirits specified in this section exclusively in the preparation of prescriptions and pharmaceutical preparations on his own premises, that the licensee shall keep books and accounts and make such entries and returns as are required by any regulations and that the licensee shall faithfully comply with all the requirements of this Act and the regulations.

  • R.S., c. E-12, s. 136
  • R.S., c. 15(1st Supp.), s. 17

Marginal note:Computing duty

  •  (1) The duty on spirits shall be charged and computed as follows:

    • (a) on the grain used for its production at the rate of one litre (1 L) of absolute ethyl alcohol for every three and six-tenths kilograms (3.6 kg), or in a distillery where malt only or a clear wort process is used, on the grain or malt used for its production at the rate of one litre (1 L) of absolute ethyl alcohol for every four and two-tenths kilograms (4.2 kg),

    • (b) on the quantity of beer, wash or wort fermented or made in the distillery, at the rate of one litre (1 L) of absolute ethyl alcohol for every twenty-four and one-half litres (24.5 L) of beer, wash or wort,

    • (c) on the quantity of beer, wash or wort fermented or made, in proportion to its alcoholic value,

    • (d) on the quantity of spirits that passes into the closed spirit-receivers, or

    • (e) on the quantity of spirits sold or removed from any distillery by the distiller, or by his agent or for his account,

    and that method of computation that yields the greatest amount of revenue is, in all cases, the one on which the distiller shall pay the duty.

  • Marginal note:When damaged grain or mill offal used

    (2) When any distiller is about to use damaged grain or mill offal and gives the collector one week’s notice of his intention to do so, such officer as is instructed for that purpose by the collector shall specially inspect the beer or wash made from the damaged grain or mill offal and test its alcoholic value and the quantity of the material that it contains.

  • Marginal note:Idem

    (3) If the officer referred to in subsection (2) reports that the yield of the damaged grain or mill offal is less than one litre (1 L) of absolute ethyl alcohol to three and six-tenths kilograms (3.6 kg), the Minister may authorize the assessment of the duty on the highest quantity ascertained by any of the other methods, without reference to the quantity of damaged grain or mill offal used by the distiller.

  • R.S., c. E-12, s. 137
  • R.S., c. 15(1st Supp.), s. 18
  • 1980-81-82-83, c. 68, s. 58

Marginal note:Abatement

  •  (1) Notwithstanding section 56, an abatement from duty of excise on distilled spirits produced in or brought into a distillery may be allowed in respect of

    • (a) distilled spirits lost through shrinkage by evaporation while the spirits were maturing in warehouse,

    • (b) distilled spirits lost through redistillation, distillery stock operations, vatting, blending, racking, rewarehousing, reducing, bottling and handling operations, or

    • (c) such quantity of fusel-oil or other refuse as is separated therefrom by a second process of distillation,

    where the distiller establishes to the satisfaction of the Minister that a loss of spirits occurred as set out in paragraph (a) or (b) or a separation was made as set out in paragraph (c), the amount of the loss or separation and that, in the case of a loss, it did not occur through voluntary destruction of spirits by the distiller, theft or the failure of the distiller to exercise reasonable diligence and effective control of his operations.

  • Marginal note:Refund or drawback

    (1.1) A refund or drawback of the customs duty imposed under section 21 of the Customs Tariff, in respect of spirits, wine or flavouring materials having a spirit content, on which the customs duty has been paid and not refunded and that are brought into a distillery for the purpose of blending with spirits in bond, may be granted under such terms and conditions as the Governor in Council may, by regulation, prescribe.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) providing for the form and manner in which evidence in support of a claim under subsection (1) shall be submitted; and

    • (b) prescribing the terms and conditions under which a refund or drawback may be granted pursuant to subsection (1.1).

  • R.S., 1985, c. E-14, s. 138
  • R.S., 1985, c. 15 (1st Supp.), s. 51
  • 1997, c. 36, s. 206
 
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