2001, c. 16, s. 3(1)

346. Section 21 of the Customs Tariff is replaced by the following:

Definitions

21. The definitions in this section apply in sections 21.1 to 21.3.

``beer'' or ``malt liquor''
« bière » ou « liqueur de malt »

``beer'' or ``malt liquor'' means beer or malt liquor, within the meaning of section 4 of the Excise Act, of tariff item No. 2202.90.10, heading No. 22.03 or tariff item No. 2206.00.80 or 2206.00.91, that is classified under that heading or tariff item or with the container in which it is imported.

``bulk''
« en vrac »

``bulk'' has the same meaning as in section 2 of the Excise Act, 2001.

``excise warehouse''
« entrepôt d'accise »

``excise warehouse'' has the same meaning as in section 2 of the Excise Act, 2001.

``excise warehouse licensee''
« exploitant agréé d'entrepôt d'accise »

``excise warehouse licensee'' has the same meaning as in section 2 of the Excise Act, 2001.

``licensed user''
« utilisateur agréé »

``licensed user'' has the same meaning as in section 2 of the Excise Act, 2001.

``packaged''
« emballé »

``packaged'' has the same meaning as in section 2 of the Excise Act, 2001.

``specified premises''
« local déterminé »

``specified premises'' has the same meaning as in section 2 of the Excise Act, 2001.

``spirits''
« spiritueux »

``spirits'' means spirits, as defined in section 2 of the Excise Act, 2001,

      (a) of an alcoholic strength by volume exceeding 22.9%, of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72 or 2206.00.93, that are classified under that tariff item or with the container in which they are imported; or

      (b) of heading No. 22.07 or 22.08, other than of tariff item No. 2207.20.11, 2207.20.12, 2207.20.90 or 2208.90.30, that are classified under that heading or with the container in which they are imported.

``wine'' « vin »

``wine'' means wine, as defined in section 2 of the Excise Act, 2001, of heading No. 22.04, 22.05 or 22.06, other than of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72, 2206.00.80, 2206.00.91 or 2206.00.93, that is classified under that heading or with the container in which it is imported.

Additional duty on bulk spirits

21.1 (1) In addition to any other duties imposed under this Act or any other Act of Parliament relating to customs, there is levied on bulk spirits, at the time they are imported, an additional duty equal to the duty that would be imposed on the spirits under section 122 of the Excise Act, 2001 if the spirits had been produced in Canada.

Duty payable under Excise Act, 2001

(2) The duty levied on bulk spirits shall be paid and collected under the Excise Act, 2001, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duty were duty imposed on the spirits under that Act, and, for those purposes, that Act applies with any modifications that the circumstances require.

Limitation

(3) Despite subsection (2) and the Excise Act, 2001, the person who is liable for duty imposed under subsection (1) in respect of bulk spirits that have not been released under the Customs Act is the person who is liable to pay duties under the Customs Act.

Additional duty on packaged spirits

21.2 (1) In addition to any other duties imposed under this Act or any other Act of Parliament relating to customs, there is levied on packaged spirits, at the time they are imported, and paid in accordance with the Customs Act, an additional duty equal to the duty that would be imposed on them under section 122 or 123 of the Excise Act, 2001 if they had been produced and packaged in Canada.

Additional duty on packaged wine

(2) In addition to any other duties imposed under this Act or any other Act of Parliament relating to customs, there is levied on packaged wine, at the time it is imported, and paid in accordance with the Customs Act, an additional duty equal to the duty that would be imposed on it under section 135 of the Excise Act, 2001 if it had been packaged in Canada.

Goods entered into warehouse or premises

(3) If, immediately after being released under the Customs Act, packaged spirits or wine is entered into the excise warehouse of the excise warehouse licensee or the specified premises of the licensed user who imported the spirits or wine, the duty levied on the spirits or wine under subsection (1) or (2) shall be paid and collected under the Excise Act, 2001. Interest and penalties shall be imposed, calculated, paid and collected under the Excise Act, 2001 as if the duty were imposed under that Act, and, for those purposes, that Act applies with any modifications that the circumstances require.

Additional duty on beer

21.3 In addition to any other duties imposed under this Act or any other Act of Parliament relating to customs, there is levied on beer or malt liquor, at the time it is imported, and paid in accordance with the Customs Act, an additional duty equal to the duty that would be levied on it under section 170 of the Excise Act if it had been manufactured or produced in Canada.

347. The definition ``duties'' in section 80 of the Act is replaced by the following:

``duties''
« droits »

``duties'', other than for the purposes of section 106, means duties or taxes levied or imposed on imported goods under Part 2, the Excise Act, 2001, the Excise Tax Act, the Special Import Measures Act or any other Act of Parliament relating to customs, but for the purposes of sections 89 and 113 does not include the goods and services tax.

2001, c. 16, s. 4(1)

348. Paragraph 83(a) of the Act is replaced by the following:

    (a) in the case of goods that would have been classified under tariff item No. 9804.10.00 or 9804.20.00, the value for duty of the goods shall be reduced by an amount equal to that maximum specified value and, in the case of alcoholic beverages and tobacco, the quantity of those goods shall, for the purposes of assessing duties other than a duty under section 54 of the Excise Act, 2001, be reduced by the quantity of alcoholic beverages and tobacco up to the maximum quantities specified in tariff item No. 9804.10.00 or 9804.20.00, as the case may be;

349. Subsection 89(2) of the Act is replaced by the following:

Exception for tobacco products or designated goods

(2) Relief of the duties or taxes levied or imposed under sections 21.1 to 21.3, the Excise Act, 2001 or the Excise Tax Act may not be granted under subsection (1) on tobacco products or designated goods.

2001, c. 16, s. 5(1)

350. Subsection 92(3) of the Act is replaced by the following:

Non-applicati on to Canadian manufactured tobacco

(3) This section does not apply to any duty imposed under the Excise Act, 2001 in respect of manufactured tobacco that is manufactured in Canada.

351. Section 94 of the Act is replaced by the following:

Definition of ``customs duties''

94. (1) In sections 95 and 96, ``customs duties'' means customs duties imposed under Part 2, other than

    (a) additional customs duties levied under sections 21.1 to 21.3;

    (b) surtaxes imposed under section 53, 55, 60, 63, 68 or 78; or

    (c) temporary duties imposed under any of sections 69 to 76.

For greater certainty

(2) For greater certainty, in sections 95 and 96, ``customs duties'' does not include any duties or taxes levied or imposed on imported goods under the Excise Act, 2001, the Excise Tax Act or the Special Import Measures Act.

352. Subparagraph 99(a)(iii) of the Act is replaced by the following:

      (iii) the circumstances in which, and the classes of goods in respect of which, relief of duties levied under sections 21.1 to 21.3 or under the Special Import Measures Act, a surtax imposed under section 53, 55, 60, 63, 68 or 78, a temporary duty imposed under any of sections 69 to 76, a tax levied under the Excise Tax Act or a duty imposed under the Excise Act, 2001 may not be granted,

353. Subsection 106(1) of the Act is replaced by the following:

Temporary relief of certain duties and taxes

106. (1) If an application for relief is made in the prescribed circumstances by a person of a prescribed class and in the prescribed form and manner, accompanied by prescribed documents and by security of a prescribed nature in an amount fixed by the Minister of National Revenue, relief shall be granted from the payment of the whole or the prescribed portion, as the case may be, of any duty imposed under sections 21.1 to 21.3 or the Excise Act, 2001 or of any excise taxes that, but for this section, would be payable in respect of prescribed goods that are imported and subsequently exported after being used in Canada only for a prescribed purpose.

354. (1) Subsection 113(2) of the Act is replaced by the following:

No refund or drawback in respect of tobacco products

(2) No refund or drawback of the duties imposed on tobacco products under the Excise Act, 2001 shall be granted under subsection (1), except if a refund of the whole or the portion of the duties is required to be granted under Division 3.

(2) Paragraph 113(4)(a) of the Act is replaced by the following:

    (a) the circumstances in which, and the classes of goods in respect of which, a refund or drawback of duties levied under sections 21.1 to 21.3 or the Special Import Measures Act, a surtax levied under section 53, 55, 60, 63, 68 or 78, a temporary duty levied under any of sections 69 to 76, a tax levied under the Excise Tax Act or a duty levied under the Excise Act, 2001 may not be granted under subsection (1);

(3) Subsection 113(5) of the Act is replaced by the following:

Designated goods

(5) Despite the exception in subsection 89(2), a refund or drawback of duties or taxes levied or imposed under sections 21.1 to 21.3, the Excise Act, 2001 or the Excise Tax Act shall be granted under paragraph (1)(a) on designated goods.

355. Tariff item Nos. 2204.10.00, 2204.21.40, 2204.29.40, 2204.30.00, 2206.00.30, 2206.00.40, 2206.00.91, 2206.00.92 and 2208.90.91 in the List of Tariff Provisions set out in the schedule to the Act are repealed.

356. The Description of Goods of tariff item No. 2206.00.11 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to ``Sparkling'' with a reference to ``Sparkling, of an alcoholic strength by volume not exceeding 22.9% vol''.

357. The Description of Goods of tariff item No. 2207.20.11 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - - -Specially denatured alcohol, within the meaning of the Excise Act, 2001

358. The Description of Goods of tariff item No. 2208.90.98 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - - -Other, packaged, of an alcoholic strength by volume not exceeding 7%

359. The Description of Goods of tariff item No. 2208.90.99 in the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

- - - -Other

360. Note 4 to Chapter 98 of the List of Tariff Provisions set out in the schedule to the Act is replaced by the following:

4. For the purpose of this Chapter, ``duties'' means duties or taxes levied or imposed on imported goods under Part 2 of this Act, the Excise Act, 2001 (other than section 54), the Excise Tax Act, the Special Import Measures Act or any other Act of Parliament relating to customs.

361. The Description of Goods of heading No. 98.26 in the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to ``sections 21 and 22 of this Act'' with a reference to ``sections 21.1 to 22 of this Act''.

362. The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 7 to this Act.

R.S., c. E-14

Excise Act

363. The Excise Act is amended by adding the following after section 1:

APPLICATION

Non-applicati on of Act

1.1 (1) Despite anything in this Act, on the coming into force of Parts 3 and 4 of the Excise Act, 2001, this Act ceases to apply in respect of

    (a) the manufacture of any goods or substance other than beer, malt liquor and any product manufactured in accordance with subsection 169(2); and

    (b) the handling of, or the dealing with, anything that is or relates to any goods or substance other than beer, malt liquor and any product manufactured in accordance with subsection 169(2), to the extent that the Excise Act, 2001 applies to that handling or dealing.

Meaning of ``beer'' and ``malt liquor''

(2) In subsection (1), ``beer'' and ``malt liquor'' have the meaning assigned by section 4.

364. The definition '' ``beer'' or ``malt liquor'' '' in section 4 of the Act is replaced by the following:

``beer'' or ``malt liquor''
« bière » ou « liqueur de malt »

``beer'' or ``malt liquor'' means all fermented liquor brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation, but does not include wine as defined in section 2 of the Excise Act, 2001;

365. Section 176 of the Act is amended by adding the following after subsection (2):

Exception

(3) Subsection (1) does not apply to a person who is licensed as a spirits licensee under section 14 of the Excise Act, 2001 and who produces beer solely for the purpose of distilling the beer.

R.S., c. E-15

Excise Tax Act

1993, c. 25, s. 54; 1994, c. 29, s. 1(1)

366. The definitions ``accredited representative'', ``cigar'', ``cigarette'', ``manufactured tobacco'' and ``tobacco stick'' in subsection 2(1) of the Excise Tax Act are repealed.

2001, c. 16, s. 17(1)

367. (1) Subsection 23(1) of the Act is replaced by the following:

Tax on various articles at schedule rates

23. (1) Subject to subsections (6) to (8), whenever goods mentioned in Schedule I are imported or are manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be.

R.S., c. 15 (1st Supp.), s. 12(1)

(2) Subsection 23(3.1) of the Act is replaced by the following:

Deemed sale

(3.1) For the purposes of this Part, a person who, under a contract for labour, manufactures or produces goods mentioned in Schedule I from any article or material supplied by another person, other than a manufacturer licensed for the purposes of this Part, for delivery to that other person is deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.

2001, c. 16, s. 17(2)

(3) Subsection 23(5) of the Act is repealed.

2001, c. 15, s. 2(1)

(4) Subsection 23(7) of the Act is replaced by the following:

When tax not payable

(7) The tax imposed under subsection (1) is not payable in the case of

    (a) goods that are purchased or imported by a manufacturer licensed for the purposes of this Part and that are to be incorporated into and form a constituent or component part of an article or product that is subject to excise tax under this Act, if the tax on the article or product has not yet been levied under this section; or

    (b) the sale of a new motor vehicle designed for highway use, or a chassis for such a vehicle, to a person described in paragraph (h) of the definition ``manufacturer or producer'' in subsection 2(1) who is a manufacturer licensed for the purposes of this Part.

1990, c. 45, s. 5(1)

(5) The portion of subsection 23(8) of the Act before paragraph (a) is replaced by the following:

Tax not payable

(8) The tax imposed under subsection (1) is not payable in the case of

1993, c. 25, s. 55(3); 1995, c. 41, s. 113; 2001, c. 16, s. 17(4)

(6) Subsections 23(8.1) to (8.3) of the Act are repealed.