Excise Act, 2001 (S.C. 2002, c. 22)

Special Excise Warehouses

Marginal note:Issuance of licence

• 20 (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative manufactured tobacco or cigars manufactured by the licensee.

• Marginal note:Single licence

  (2) The Minister shall not issue to the same person more than one special excise warehouse licence.

• Marginal note:Licence limited to one premises

  (3) The Minister shall not specify more than one premises of a special excise warehouse licensee as a special excise warehouse.

Marginal note:Return of tobacco

• 21 (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars manufactured by the tobacco licensee,

  • (a) the person shall immediately return the tobacco or cigars of that licensee that are stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and

  • (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.

• Marginal note:Cancellation

  (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars.

Duty Free Shops

Marginal note:Issuance of licence

22 Subject to the regulations, the Minister may, on application, issue to a person who is licensed under the Customs Act to operate a duty free shop a licence authorizing the person to possess and sell imported manufactured tobacco that is subject to a special duty under section 53.

General

Marginal note:Refusal to issue licence or registration

• 23 (1) The Minister may refuse to issue a licence or registration to a person if the Minister has reason to believe

  • (a) that access to the person’s premises will be denied or impeded by any person; or

  • (b) that the refusal is otherwise in the public interest.

• Marginal note:Amendment or renewal

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence or registration.

• Marginal note:Cancellation, etc. — access to premises

  (2.1) The Minister may amend, suspend or cancel any licence or registration of a person if

  • (a) access to the premises of the licensee or registrant is denied or impeded by any person;

  • (a.1) in the case of a cannabis licence, a licence or permit issued to the person under subsection 62(1) of the Cannabis Act is amended, suspended or revoked; or

  • (b) it is otherwise in the public interest.

• Marginal note:Conditions imposed by Minister

  (3) On issuing a licence or registration, or at any later time, the Minister

  • (a) may, subject to the regulations, specify the activities that may be carried on under the licence or registration and the premises where those activities may be carried on;

  • (b) shall, in the case of a spirits licence, a tobacco licence, a cannabis licence or a vaping product licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

  • (c) may impose any other conditions that the Minister considers appropriate with respect to the carrying on of activities under the licence or registration.

Marginal note:Compliance with Act

24 A licensee or registrant shall not carry on any activity under their licence or registration otherwise than in accordance with this Act.

Marginal note:Licences and registrations not statutory instruments

24.1 For greater certainty, a licence or registration issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act.

PART 3Tobacco

Regulation of Tobacco

Marginal note:Manufacturing tobacco product without a licence prohibited

• 25 (1) No person shall, other than in accordance with a tobacco licence issued to the person, manufacture a tobacco product.

• Marginal note:Deemed manufacturer

  (2) A person who, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacture of a tobacco product is deemed to be manufacturing the tobacco product and the other person is deemed not to be manufacturing the tobacco product.

• Marginal note:Exception — manufacturing for personal use

  (3) An individual who is not a tobacco licensee may manufacture manufactured tobacco or cigars

  • (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the tobacco or cigars are for their personal use; or

  • (b) from raw leaf tobacco grown on land on which the individual resides, if

    • (i) the tobacco or cigars are for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and

    • (ii) the quantity of tobacco or cigars manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.

Marginal note:Issuance of excise stamps

• 25.1 (1) On application in the prescribed form and manner, the Minister may issue, to a tobacco licensee or a prescribed person who is importing tobacco products, stamps the purpose of which is to indicate that duty, other than special duty, has been paid on a tobacco product.

• Marginal note:Quantity of tobacco excise stamps

  (2) The Minister may limit the quantity of tobacco excise stamps that may be issued to a person under subsection (1).

• Marginal note:Security

  (3) No person shall be issued a tobacco excise stamp unless the person has provided security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations.

• Marginal note:Supply of tobacco excise stamps

  (4) The Minister may authorize a producer of tobacco excise stamps to supply, on the direction of the Minister, tobacco excise stamps to a person who is issued those stamps under subsection (1).

• Marginal note:Design and construction

  (5) The design and construction of tobacco excise stamps shall be subject to the approval of the Minister.

Marginal note:Counterfeiting tobacco excise stamps

25.2 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a tobacco excise stamp.

Marginal note:Unlawful possession of tobacco excise stamps

• 25.3 (1) No person shall possess a tobacco excise stamp that has not been affixed to a tobacco product or its container in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty, other than special duty, has been paid on the product.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a tobacco excise stamp by

  • (a) the person who lawfully produced the tobacco excise stamp;

  • (b) the person who is issued the tobacco excise stamp;

  • (c) a sufferance warehouse licensee who possesses the tobacco excise stamp in their sufferance warehouse on behalf of a person described under paragraph (b); or

  • (d) a prescribed person.

Marginal note:Unlawful supply of tobacco excise stamps

25.4 No person shall dispose of, sell or otherwise supply, or offer to supply, a tobacco excise stamp otherwise than in accordance with this Act.

Marginal note:Cancellation, return and destruction of tobacco excise stamps

25.5 The Minister may

• (a) cancel a tobacco excise stamp that has been issued; and

• (b) direct that it be returned or destroyed in a manner specified by the Minister.

Marginal note:Tobacco dealer

26 No person shall carry on the activity of a tobacco dealer except in accordance with a tobacco dealer’s licence issued to the person.

Marginal note:Unlawful packaging or stamping

27 No person shall package or stamp any raw leaf tobacco or tobacco product unless the person

• (a) is a tobacco licensee; or

• (b) is the importer or owner of the tobacco or product and it has been placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Unlawful removal

• 28 (1) Except as permitted under section 40, no person shall remove raw leaf tobacco or a tobacco product from the premises of a tobacco licensee unless the tobacco or product is packaged and

  • (a) if the product is intended for the duty-paid market, it is stamped; or

  • (b) if the product is not intended for the duty-paid market, all tobacco markings that are required under this Act to be printed on or affixed to its container are so printed or affixed.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a tobacco licensee who removes from their premises

  • (a) raw leaf tobacco for

    • (i) return to a licensed tobacco dealer or a tobacco grower,

    • (ii) delivery to another tobacco licensee, or

    • (iii) export; or

  • (b) partially manufactured tobacco for delivery to another tobacco licensee or for export.

Marginal note:Unlawful removal from premises of tobacco dealer

• 28.1 (1) No person shall remove raw leaf tobacco from the premises of a licensed tobacco dealer.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a licensed tobacco dealer who removes from their premises raw leaf tobacco for

  • (a) return to a tobacco grower;

  • (b) delivery to a tobacco licensee or to another licensed tobacco dealer; or

  • (c) export.

Marginal note:Prohibition — certain tobacco products for sale, etc.

29 No person shall purchase or receive for sale a tobacco product

• (a) from a manufacturer who the person knows, or ought to know, is not a tobacco licensee;

• (b) that is required under this Act to be packaged and stamped unless it is so packaged and stamped; or

• (c) that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Selling, etc., unstamped raw leaf tobacco

• 30 (1) No person shall dispose of, sell, offer for sale, purchase or have in their possession raw leaf tobacco unless the tobacco is packaged and stamped.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a person who is a tobacco licensee or a licensed tobacco dealer; or

  • (b) the possession of raw leaf tobacco

    • (i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse,

    • (ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province, or

    • (iii) by a prescribed person who is transporting the tobacco under prescribed circumstances and conditions.

  • (c) [Repealed, 2007, c. 18, s. 77]

Marginal note:Exceptions to sections 26 and 30

31 A tobacco grower does not contravene section 26 or 30 by reason only that the grower deals in or has in their possession raw leaf tobacco

• (a) grown by the grower on their property for sale to a tobacco licensee or a licensed tobacco dealer or for other disposition to a tobacco licensee, if the tobacco is either on the grower’s property or is being transported by the grower

  • (i) in connection with the curing of the tobacco,

  • (ii) for delivery to or return from a tobacco licensee or a licensed tobacco dealer, or

  • (iii) for delivery to or return from a body established under provincial law for the marketing of raw leaf tobacco grown in the province;

• (b) grown by any other person, if the grower operates a tobacco drying kiln on the grower’s property and the grower’s possession is solely for the purpose of curing the tobacco and returning it to the other person immediately after completion of the curing process or exporting it in accordance with paragraph (c); or

• (c) that is to be exported, if the grower has the written approval of the Minister and complies with any conditions that the Minister considers appropriate.