Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Non-compliant imports

• 158.51 (1) If an imported vaping product intended for the duty-paid market is not stamped to indicate that vaping duty has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

• Marginal note:Non-compliant imports — specified vaping province

  (2) If an imported vaping product intended for the duty-paid market of a specified vaping province is not stamped to indicate that additional vaping duty in respect of the province has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

• Marginal note:Exceptions

  (3) Subsections (1) and (2) do not apply

  • (a) in respect of a packaged vaping product that is imported by a vaping product licensee for stamping by the vaping product licensee; or

  • (b) in prescribed circumstances.

Marginal note:Imports for stamping — delivery to premises

158.511 If a vaping product licensee imports a packaged vaping product for stamping by the vaping product licensee, the vaping product licensee shall, immediately after the vaping product is released under the Customs Act, deliver the vaping product to its premises for stamping.

Marginal note:Vaping products — waste removal

• 158.52 (1) No person shall remove a vaping product that is waste from the premises of a vaping product licensee other than the licensee or a person authorized by the Minister.

• Marginal note:Removal requirements

  (2) If a vaping product that is waste is removed from the premises of a vaping product licensee, it shall be dealt with in the manner authorized by the Minister.

Marginal note:Re-working or destruction of vaping products

• 158.53 (1) A vaping product licensee may re-work or destroy a vaping product in the manner authorized by the Minister.

• Marginal note:Importation for re-working or destruction

  (2) The Minister may authorize a vaping product licensee to import vaping products manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Responsibility for Vaping Products

Marginal note:Responsibility — vaping products manufactured in Canada

• 158.54 (1) Subject to section 158.55, a person is responsible for a vaping product manufactured in Canada at any time if

  • (a) the person is

    • (i) the vaping product licensee that owns the vaping product at that time, or

    • (ii) if the vaping product is not owned at that time by a vaping product licensee, the vaping product licensee that last owned it; or

  • (b) the person is a prescribed person.

• Marginal note:Responsibility — imported vaping products

  (2) Subject to sections 158.55 and 158.56, a person is responsible for an imported vaping product at any time if the person

  • (a) imported the vaping product; or

  • (b) is a prescribed person.

Marginal note:Person not responsible

158.55 A person that is responsible for a vaping product ceases to be responsible for it if

• (a) it is packaged and stamped and the duty on it is paid;

• (b) it is consumed or used in the manufacturing of a vaping product that is

  • (i) a vaping product drug, or

  • (ii) a prescribed vaping product;

• (c) it is taken for use and the duty on it is paid;

• (d) it is taken for use in accordance with any of subparagraphs 158.66(a)(i) to (iv);

• (e) it is exported;

• (f) it is delivered to an accredited representative for their personal or official use;

• (g) it is lost in prescribed circumstances and the person fulfils any prescribed conditions; or

• (h) prescribed circumstances exist.

Marginal note:Imports for personal use

158.56 An individual that imports vaping products for their personal use in quantities not in excess of prescribed limits is not responsible for those vaping products.

Imposition and Payment of Duty on Vaping Products

Marginal note:Imposition

158.57 Duty is imposed on vaping products manufactured in Canada or imported in the amount determined under Schedule 8 and is payable

• (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are stamped;

• (a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and

• (b) in the case of any other imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.

Marginal note:Imposition — additional vaping duty

158.58 In addition to the duty imposed under section 158.57, a duty in respect of a specified vaping province is imposed on vaping products manufactured in Canada, or imported, in prescribed circumstances in the amount determined in a prescribed manner and is payable

• (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are stamped;

• (a.1) in the case of packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee, by the vaping product licensee and at the time they are stamped; and

• (b) in the case of any other imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.

Marginal note:Application of Customs Act

158.59 The duties imposed under paragraphs 158.57(b) and 158.58(b) on imported vaping products 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 duties 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:Duty on vaping products taken for use

• 158.6 (1) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, the following rules apply:

  • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

  • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

• Marginal note:Specified vaping province — taken for use

  (2) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Marginal note:Duty on unaccounted vaping products

• 158.61 (1) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), the following rules apply:

  • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

  • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

• Marginal note:Specified vaping province — unaccounted vaping products

  (2) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

• Marginal note:Exception

  (4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.2.

Marginal note:Duty relieved — unstamped vaping products

• 158.62 (1) The duties imposed under sections 158.57 and 158.58 are relieved on a vaping product that is not stamped.

• Marginal note:Vaping products imported for personal use

  (2) Subsection (1) does not apply to the importation of vaping products by an individual for their personal use to the extent that the quantity of the products imported exceeds the quantity permitted under Chapter 98 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to be imported without the payment of duties, as defined in Note 4 to that Chapter.

Marginal note:Duty relieved — importation by an individual

• 158.63 (1) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured in Canada and are stamped.

• Marginal note:Duty relieved — reimportation

  (2) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured outside Canada, were previously imported into Canada and are stamped.

Marginal note:Duty relieved — importation for destruction

158.64 The duties imposed under paragraphs 158.57(b) and 158.58(b) are relieved on a stamped vaping product that was manufactured in Canada by a vaping product licensee and that is imported for re-working or destruction in accordance with section 158.53.

Marginal note:Duty relieved — prescribed circumstances

158.65 The duties imposed under section 158.57 or 158.58 are relieved on a vaping product in prescribed circumstances.

Marginal note:Duty not payable

158.66 Duty is not payable on a vaping product

• (a) that is

  • (i) taken for analysis, or destroyed, by the Minister,

  • (ii) taken for analysis by a vaping product licensee in a manner approved by the Minister,

  • (iii) destroyed by a vaping product licensee in a manner approved by the Minister,

  • (iv) delivered by a vaping product licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

  • (v) a vaping product drug, or

  • (vi) a prescribed vaping product; or

• (b) in prescribed circumstances.