Marginal note:Removal of imported tobacco product

• 51. (1) No person shall remove an imported tobacco product from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, an imported tobacco product may be removed from an excise warehouse

  • (a) for delivery to another excise warehouse;

  • (b) for delivery to an accredited representative for their personal or official use;

  • (c) for delivery as ships’ stores, in accordance with the Ships’ Stores Regulations;

  • (d) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act; or

  • (e) for export in accordance with this Act by the excise warehouse licensee.

Marginal note:Restriction — special excise warehouse

52. No special excise warehouse licensee shall store a tobacco product that is manufactured in Canada in their special excise warehouse for any purpose other than its sale and distribution to an accredited representative for the personal or official use of the representative.

Special Duties on Tobacco Products

Marginal note:Special duty on imported manufactured tobacco delivered to duty free shop

• 53. (1) A special duty is imposed on imported manufactured tobacco that is delivered to a duty free shop at the rates set out in section 1 of Schedule 3.

• Marginal note:When and by whom duty is payable

  (2) The special duty is payable at the time of delivery and is payable by the duty free shop licensee.

Meaning of “traveller’s tobacco”

• 54. (1) In this section, “traveller’s tobacco” means manufactured tobacco that is imported by a person at any time and

  • (a) is classified under tariff item No. 9804.10.00, 9804.20.00, 9805.00.00 or 9807.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; or

  • (b) would be classified under tariff item No. 9804.10.00 or 9804.20.00 in that List but for the fact that the total value for duty as determined under section 46 of the Customs Act of all goods imported by the person at that time exceeds the maximum value specified in that tariff item.

• Marginal note:Special duty on traveller’s tobacco

  (2) A special duty is imposed on traveller’s tobacco at the time it is imported at the rates set out in section 2 of Schedule 3.

• Marginal note:When and how duty is payable

  (3) The special duty 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 special duty were a duty levied under section 20 of the Customs Tariff, and for those purposes, the Customs Act applies with any modifications that the circumstances require.

• Marginal note:Exception

  (4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if it was manufactured in Canada and is stamped.

Definition of “tobacco product”

55. In sections 56 to 58, “tobacco product” means manufactured tobacco other than partially manufactured tobacco.

Marginal note:Imposition

• 56. (1) A special duty is imposed on a tobacco product that is manufactured in Canada and exported

  • (a) if the export is in accordance with paragraph 50(4)(a) by the tobacco licensee who manufactured it, at the rates set out in section 3 of Schedule 3; or

  • (b) in any other case, at the rates set out in section 4 of Schedule 3.

• Marginal note:When and by whom duty is payable

  (2) Subject to sections 57 and 58, the special duty is payable, at the time the tobacco product is exported, by

  • (a) if paragraph (1)(a) applies, the tobacco licensee who manufactured it; or

  • (b) if paragraph (1)(b) applies, the person who exported it.

Marginal note:Duty relieved — deliveries to a foreign duty free shop and as foreign ships’ stores

57. The special duty imposed under section 56 is relieved on a tobacco product that is exported by the tobacco licensee who manufactured it for delivery to a foreign duty free shop or as foreign ships’ stores.

Marginal note:Duty relieved — prescribed tobacco product

• 58. (1) The special duty imposed under section 56 is relieved on a tobacco product of a particular brand if

  • (a) the tobacco product of that brand is prescribed;

  • (b) during the three-year period before the year in which the tobacco product of that brand is exported, the tobacco product of that brand was not sold in Canada, other than in a duty free shop, except in quantities not significantly greater than the minimum quantities sufficient for the purposes of registering the trade mark for that brand; and

  • (c) during any year before the three-year period referred to in paragraph (b), sales in Canada of the product of that brand never exceeded

    • (i) 0.5% of total sales in Canada of similar products, or

    • (ii) if another percentage that is less than 0.5% is prescribed for the purposes of this subsection, that percentage of total sales in Canada of similar products.

• Marginal note:Duty relieved — prescribed cigarettes

  (2) The special duty imposed under section 56 is relieved on cigarettes of a particular type or formulation manufactured in Canada and exported 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; and

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

• Marginal note:Distinguishing different cigarettes

  (3) For the purpose of subsection (2), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

PART 4ALCOHOL

General

Marginal note:Application — Importation of Intoxicating Liquors Act

59. For greater certainty, the Importation of Intoxicating Liquors Act continues to apply to the importation, sending, taking and transportation of intoxicating liquor into a province.

Marginal note:Prohibition — production and packaging of spirits

• 60. (1) No person shall, except in accordance with a spirits licence issued to the person, produce or package spirits.

• Marginal note:Exception

  (2) Subsection (1) does not apply to the packaging of spirits from a marked special container by a purchaser at a bottle-your-own premises.

Marginal note:Prohibition — possession of still

61. No person shall possess a still or other equipment suitable for the production of spirits with the intent of producing spirits unless the person

• (a) is a spirits licensee; or

• (b) has a pending application for a spirits licence.

Marginal note:Prohibition — production and packaging of wine

• 62. (1) No person shall, except in accordance with a wine licence issued to the person, produce or package wine.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) the production of wine by an individual for their personal use;

  • (b) the packaging of wine referred to in paragraph (a) by an individual for their personal use; or

  • (c) the packaging of wine from a marked special container by a purchaser at a bottle-your-own premises.

Marginal note:Prohibition — sale of wine produced for personal use

63. No person shall sell or put to a commercial use wine that was produced, or produced and packaged, by an individual for their personal use.

Marginal note:Wine produced by individual

64. For the purposes of this Act, wine is not produced or packaged by an individual if it has been produced or packaged by a person acting on their behalf.

Marginal note:Prohibition — ferment-on-premises facility

65. No person shall carry on at a ferment-on-premises facility any activity specified in a licence or registration issued under this Act other than an activity specified in a ferment-on-premises registration.

Marginal note:Application — in-transit and transhipped alcohol

66. Sections 67 to 72, 74, 76, 80, 85, 88, 97 to 100 and 102 do not apply to imported alcohol or specially denatured alcohol that is, in accordance with the Customs Act, the Customs Tariff and the regulations made under those Acts,

• (a) transported by a customs bonded carrier from a place outside Canada to another place outside Canada;

• (b) stored in a customs bonded warehouse or sufferance warehouse for subsequent delivery to a place outside Canada; or

• (c) transported by a customs bonded carrier

  • (i) from a place outside Canada to a customs bonded warehouse or a sufferance warehouse for subsequent delivery to a place outside Canada, or

  • (ii) from a customs bonded warehouse or a sufferance warehouse to a place outside Canada.

Marginal note:Prohibition — sale of alcohol

67. No person shall sell

• (a) bulk alcohol unless it was produced or imported in accordance with this Act;

• (b) packaged alcohol unless it was, in accordance with this Act,

  • (i) produced and packaged in Canada,

  • (ii) imported and packaged in Canada, or

  • (iii) imported; or

• (c) a marked special container of alcohol unless it was marked in accordance with this Act.

Marginal note:Availability and sampling of imported DA and SDA

• 68. (1) Any person who imports a product that is reported under the Customs Act as being denatured alcohol or specially denatured alcohol shall make the product available for sampling and the product is required to be sampled by the Minister before it is released under that Act.

• Marginal note:Testing

  (2) The samples must be tested to verify that the product is denatured alcohol or specially denatured alcohol.

• Marginal note:Minister may waive

  (3) The Minister may at any time waive the requirement to sample an imported product under subsection (1).

• Marginal note:Fees

  (4) The Minister may fix fees to be paid by the importer of the product but those fees must not exceed an amount determined by the Minister to be the costs to Her Majesty in respect of the sampling and testing.

Bulk Alcohol

Marginal note:Prohibition — ownership of bulk alcohol

69. No person shall own bulk alcohol unless it was produced or imported in accordance with this Act.

Marginal note:Prohibition — possession

• 70. (1) No person shall possess bulk alcohol.

• Marginal note:Exception

  (2) Subsection (1) does not apply

  • (a) to a spirits licensee or a licensed user who possesses bulk spirits that were produced or imported by a spirits licensee;

  • (b) to a wine licensee or a licensed user who possesses bulk wine that was produced or imported by a wine licensee;

  • (c) to a licensed user who possesses bulk alcohol that was imported by the licensed user;

  • (d) to an alcohol registrant who possesses, for the purposes of storage or transportation, bulk alcohol that was produced by an alcohol licensee or imported by an alcohol licensee or licensed user;

  • (e) to a sufferance warehouse licensee who possesses in their sufferance warehouse bulk alcohol that was imported by a person permitted to do so under this Act;

  • (f) to a ferment-on-premises registrant who possesses bulk wine that was produced at the registrant’s ferment-on-premises facility by an individual for the individual’s personal use; or

  • (g) to an individual who possesses less than 500 L of bulk wine that was lawfully produced at a residence or a ferment-on-premises facility for an individual’s personal use.

Marginal note:Prohibition — supply of spirits

71. No person shall give possession of bulk spirits to a person other than a spirits licensee, a licensed user or an alcohol registrant.

Marginal note:Prohibition — supply of wine

• 72. (1) No person shall give possession of bulk wine to a person other than a wine licensee, a licensed user or an alcohol registrant.

• Marginal note:Exception

  (2) Subsection (1) does not apply to an individual who, in connection with their personal use of it, gives possession of bulk wine lawfully produced by an individual for their personal use.

Marginal note:Restriction — licensed user

73. A licensed user shall not use or dispose of bulk alcohol other than to

• (a) use it in an approved formulation;

• (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

• (c) use it to produce vinegar;

• (d) use it in accordance with section 130 or 131;

• (e) return it to

  • (i) in the case of alcohol returned in circumstances to which paragraph 105(1)(a) or 114(1)(a) applies, a licensee referred to in that paragraph, or

  • (ii) in any other case, the alcohol licensee who supplied it;

• (f) subject to section 76, export it;

• (g) use it for analysis in a manner approved by the Minister; or

• (h) destroy it in a manner approved by the Minister.

Marginal note:Importation — bulk spirits

• 74. (1) No person shall import bulk spirits other than a spirits licensee, a licensed user or, if the spirits are in a special container, an excise warehouse licensee in accordance with section 80.

• Marginal note:Importation — bulk wine

  (2) No person shall import bulk wine other than a wine licensee, a licensed user or, if the wine is in a special container, an excise warehouse licensee in accordance with section 85.

Marginal note:Importations involving a provincial authority

75. If bulk alcohol is imported under circumstances in which subsection 3(1) of the Importation of Intoxicating Liquors Act applies, the alcohol is deemed, for the purposes of this Act, to have been imported by the person who would have been the importer in the absence of that subsection and not by Her Majesty in right of a province or a liquor authority.

Marginal note:Unauthorized export

76. No person shall export bulk alcohol other than

• (a) the alcohol licensee who is responsible for the alcohol;

• (b) the licensed user who imported the alcohol; or

• (c) a person required to do so under section 101.

Special Containers of Spirits

Marginal note:Marked container deemed packaged

77. If a special container of spirits is marked, the spirits are deemed to be packaged at the time the container is marked.

Marginal note:Marking

• 78. (1) No person shall mark a special container of spirits unless

  • (a) the person is a spirits licensee; or

  • (b) the container is one that has been placed in a sufferance warehouse in accordance with section 80 and the person marks the container in the circumstances described in that section.

• Marginal note:Container to be warehoused

  (2) If a spirits licensee marks a special container of spirits, the licensee shall immediately enter it into an excise warehouse.

Marginal note:Importation

79. No person, other than an excise warehouse licensee, shall import a marked special container of spirits.

Marginal note:Marking of imported container

80. If a special container of spirits that is imported by an excise warehouse licensee is not marked when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being marked.