Excise Warehouses

Restriction - entering tobacco

49. No person shall enter into an excise warehouse

    (a) a tobacco product that is stamped; or

    (b) any other tobacco product except in accordance with this Act.

Definitions

50. (1) The definitions in this subsection apply in this section.

``Canadian manufactured tobacco''
« tabac fabriqué canadien »

``Canadian manufactured tobacco'' means manufactured tobacco that is manufactured in Canada but does not include partially manufactured tobacco or foreign brand tobacco.

``foreign brand tobacco''
« tabac de marque étrangère »

``foreign brand tobacco'' means manufactured tobacco in respect of which the special duty imposed under section 56 is relieved because of section 58.

Categories of Canadian manufactured tobacco

(2) For the purposes of subsection (5), each of the following constitutes a category of Canadian manufactured tobacco:

    (a) cigarettes;

    (b) tobacco sticks; and

    (c) manufactured tobacco other than cigarettes and tobacco sticks.

Prohibition on removal

(3) No person shall remove from an excise warehouse or a special excise warehouse a tobacco product manufactured in Canada.

Exception for Canadian manufactured tobacco

(4) Subject to the regulations, Canadian manufactured tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is

    (a) for export by the licensee in accordance with subsection (5) and not for delivery to a foreign duty free shop or as foreign ships' stores;

    (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the Canadian manufactured tobacco; or

    (c) for delivery to an accredited representative for their personal or official use.

Maximum quantity permitted to be exported from excise warehouse

(5) A tobacco licensee shall not, at a particular time in a calendar year, remove a particular quantity of a category of Canadian manufactured tobacco from the licensee's excise warehouse for export if the total quantity of that category removed in the year up to that time by the licensee from the warehouse for export, plus the particular quantity, exceeds 1.5% of the total quantity of that category manufactured by the licensee in the preceding calendar year.

Quantities to be excluded for the purposes of subsection (5)

(6) In subsection (5), the total quantity of a category of Canadian manufactured tobacco manufactured by a licensee in the preceding calendar year does not include any quantity of that category that was exported by the licensee for delivery to a foreign duty free shop or as foreign ships' stores.

Exception for cigars

(7) Subject to the regulations, cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them only if they are

    (a) for export by the licensee in accordance with this Act;

    (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the cigars;

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

    (d) for delivery as ships' stores in accordance with the Ships' Stores Regulations;

    (e) for delivery to another excise warehouse, if the excise warehouse licensee of the other excise warehouse certifies in the prescribed form to the tobacco licensee that the cigars are for delivery as ships' stores in accordance with the Ships' Stores Regulations; or

    (f) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act.

Exception for partially manufactured tobacco or foreign brand tobacco

(8) Subject to the regulations, partially manufactured tobacco or foreign brand tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is exported by the licensee and not for delivery to a foreign duty free shop or as foreign ships' stores.

Removal from warehouse - ships' stores

(9) Subject to the regulations, cigars manufactured in Canada may be removed from an excise warehouse referred to in paragraph (7)(e) for delivery as ships' stores in accordance with the Ships' Stores Regulations.

Removal from warehouse for reworking or destruction

(10) Subject to the regulations, tobacco products manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for reworking or destruction by the licensee in accordance with section 41.

Removal from special excise warehouse - accredited representative s

(11) Subject to the regulations, Canadian manufactured tobacco and cigars may be removed from a special excise warehouse for delivery to an accredited representative for their personal or official use if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars.

Removal of imported tobacco product

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

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Distinguishin g 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 4

ALCOHOL

General

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.

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.

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.

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.

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.

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.

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.

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.

Prohibition - ferment-on-pr emises 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.

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.

Prohibition - sale of alcohol

67. No person shall sell