Notice of Ways and Means Motion to introduce an Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures
PART 3
Amendments to the Excise Act, 2001, the Excise Act and Other Related Texts
DIVISION 1
Excise Act, 2001 and Other Related Texts (Vaping Products)
2002, c. 22
Excise Act, 2001
54 (1) The definitions
container, excise stamp and manufacture in section 2 of the Excise Act, 2001 are replaced by the following:
container, in
respect of a tobacco product, a cannabis product or a vaping
product, means a wrapper, package, carton, box, crate, bottle, vial or other container that
contains the tobacco product, cannabis product or vaping product.
(contenant)
excise stamp means a tobacco excise stamp, a cannabis excise stamp or a vaping excise stamp. (timbre d’accise)
manufacture
includes
(a) in respect of a tobacco product, any step in the preparation or working up of raw
leaf tobacco into the tobacco product, including packing,
stemming, reconstituting, converting or packaging the raw leaf tobacco or tobacco product; and
(b) in respect of a vaping product, any step in the production
of the vaping product, including inserting a vaping substance into a vaping device or packaging the vaping
product. (fabrication)
(2) Paragraph (a) of the definition packaged in section 2 of the Act is replaced by the
following:
(a) in respect of raw leaf tobacco, a tobacco product, a cannabis product or a vaping product, packaged in a prescribed package; or
(3) The definition stamped in section 2 of the Act is amended by striking out
“and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by
adding the following after paragraph (b):
(c) in respect of a vaping product, that a vaping excise
stamp, and all prescribed information in a prescribed format in respect of the vaping product, are stamped,
impressed, printed or marked on, indented into or affixed to the vaping product or its container in the
prescribed manner to indicate that duty has been paid on the vaping product. (estampillé)
(4) Paragraph (b) of the definition take for use in section 2 of the Act is replaced by the
following:
(b) in respect of a cannabis product or a vaping
product, to consume, analyze or destroy the cannabis product or
vaping product. (utilisation pour
soi)
(5) Section 2 of the Act is amended by adding the following in alphabetical
order:
additional vaping
duty means a duty imposed under section
158.58. (droit additionnel sur le
vapotage)
immediate
container, in respect of a vaping
substance, means the container that is in direct contact with the vaping substance. It does not include a vaping
device. (contenant immédiat)
specified vaping
province means a prescribed
province. (province déterminée de
vapotage)
vaping device means property (other than prescribed property)
that is
(a) a device that produces emissions in the form of an aerosol
and is intended to be brought to the mouth for inhalation of the aerosol;
(b) a vaping pod or another part that may be used with a
device referred to in paragraph (a); or
(c) a prescribed property. (dispositif de vapotage)
vaping duty means a duty imposed under section
158.57. (droit sur le vapotage)
vaping excise
stamp means a stamp that is issued by
the Minister under subsection 158.36(1) and that has not been cancelled under section 158.4. (timbre d’accise de vapotage)
vaping product means
(a) a vaping substance that is not contained within a vaping
device; or
(b) a vaping device that contains a vaping substance.
It does
not include a cannabis product or a tobacco product. (produit de vapotage)
vaping product
drug means a vaping product (other than a
prescribed vaping product) that is
(a) a drug that has been assigned a drug identification number
under the Food and Drug Regulations; or
(b) a prescribed vaping product. (drogue de produit de vapotage)
vaping product
licensee means a person that holds a
vaping product licence issued under section 14. (titulaire de licence de produits de vapotage)
vaping product
marking means prescribed information
that is required under this Act to be printed on, or affixed to, a container of vaping products that are not
required under this Act to be stamped. (mention
obligatoire pour vapotage)
vaping substance means
(a) a substance or mixture of substances, whether or not it
contains nicotine, that is produced to be used, or sold for use, with a vaping device to produce emissions in
the form of an aerosol; or
(b) a prescribed substance, material or thing.
It does
not include a prescribed substance, material or thing. (substance de vapotage)
55 (1) Subsection 5(1)
of the Act is replaced by the following:
Constructive possession
5 (1) For the purposes of section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1),
section 61, subsections 70(1) and 88(1), section 158.04, subsections 158.05(1) and 158.11(1) and (2), section 158.37, subsections 158.38(1) and 158.44(1) and (2), sections
230 and 231 and subsection 238.1(1), if one of two or more persons, with the knowledge and consent of the rest
of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each
and all of them.
(2) The portion of subsection 5(2) of the Act before paragraph (a) is replaced
by the following:
Definition of possession
(2) In this section and in
section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section
158.04, subsections 158.05(1) and 158.11(1) and (2), section 158.37 and
subsections 158.38(1), 158.44(1) and (2) and 238.1(1), possession means not only having in
one’s own personal possession but also knowingly
56 Subsection 14(1) of the Act is amended by striking out “or” at
the end of paragraph (d), by adding “or” at the end of paragraph (e) and by adding the following
after paragraph (e):
(f) a vaping product licence, authorizing the person to
manufacture vaping products.
57 Subsection 19(1) of the Act is replaced by the following:
Issuance of licence
19 (1) Subject to the regulations, on application, the Minister may issue an excise
warehouse licence to a person that is not a retailer of alcohol
authorizing the person to possess in their excise warehouse manufactured tobacco, cigars or vaping products that are not stamped or non-duty-paid packaged
alcohol.
58 Paragraph 23(3)(b) of the Act is replaced by the following:
(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
59 The Act is amended by adding the following after section 158.34:
PART 4.2
Vaping Products
Manufacturing and Stamping
Manufacturing without licence
prohibited
158.35 (1) No person shall, other than in accordance with a vaping
product licence issued to the person, manufacture vaping products.
Deemed manufacturer
(2) A person that, 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 manufacturing of a vaping product is deemed to be manufacturing the vaping product and the other person is
deemed not to be manufacturing the vaping product.
Exception — manufacture for
personal use
(3) An individual who is not a vaping product licensee may
manufacture vaping products for their personal use.
Exception — regulations
(4) Subsection (1) does not apply in respect of a prescribed
person that manufactures prescribed vaping products in prescribed circumstances or for a prescribed
purpose.
Issuance of vaping excise stamps
158.36 (1) On application in the prescribed form and manner, the
Minister may issue, to a vaping product licensee or to a prescribed person that is importing vaping products,
stamps the purpose of which is to indicate that vaping duty and, if applicable, additional vaping duty have been
paid on a vaping product.
Quantity of vaping excise stamps
(2) The Minister may limit the quantity of vaping excise
stamps that may be issued to a person under subsection (1).
Security
(3) No person shall be issued a vaping 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.
Supply of vaping excise stamps
(4) The Minister may authorize a producer of vaping excise
stamps to supply, on the direction of the Minister, vaping excise stamps to a person to which those stamps are
issued under subsection (1).
Design and construction
(5) The design and construction of vaping excise stamps shall
be subject to the approval of the Minister.
Counterfeit vaping excise stamps
158.37 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 vaping excise stamp.
Unlawful possession of vaping excise
stamps
158.38 (1) No person shall possess a vaping excise stamp that has not
been affixed to the container of a vaping product in the manner prescribed for the purposes of the definition
stamped in section 2 to indicate that duty has been paid on
the vaping product.
Exceptions — possession
(2) Subsection (1) does not apply to the possession of a
vaping excise stamp by
(a) the person that lawfully produced the vaping excise
stamp;
(b) the person to which the vaping excise stamp is
issued;
(c) a sufferance warehouse licensee that possesses the vaping
excise stamp in their sufferance warehouse on behalf of the person described under paragraph (b); or
(d) a prescribed person.
Unlawful supply of vaping excise
stamps
158.39 No person shall dispose of, sell or otherwise supply, or
offer to supply, a vaping excise stamp otherwise than in accordance with this Act.
Cancellation of vaping excise
stamps
158.4 The Minister may
(a) cancel a vaping excise stamp that has been issued;
and
(b) direct that it be returned or destroyed in a manner
specified by the Minister.
Unlawful packaging or stamping
158.41 No person shall package or stamp a vaping product
unless
(a) the person is a vaping product licensee;
(b) the person is the importer or owner of the vaping product
and the vaping product has been placed in a sufferance warehouse for the purpose of being stamped; or
(c) the person is a prescribed person.
Unlawful removal
158.42 (1) Except as permitted under section 158.52 or if prescribed
circumstances exist, no person shall remove a vaping product from the premises of a vaping product licensee
unless it is packaged and
(a) if the vaping product is intended for the duty-paid
market,
(i) it is stamped to indicate that vaping duty has been paid,
and
(ii) if additional vaping duty in respect of a specified vaping
province is imposed on the vaping product, it is stamped to indicate that the additional vaping duty has been
paid; or
(b) if the vaping product is not intended for the duty-paid
market, all vaping product markings that are required under this Act to be printed on, or affixed to, its
container are so printed or affixed.
Exceptions
(2) Subsection (1) does not apply to a vaping product licensee
that removes from their premises a vaping product if it is
(a) being removed for
(i) delivery to another vaping product licensee,
(ii) export, or
(iii) delivery to a person for analysis or destruction in
accordance with subparagraph 158.66(a)(iv); or
(b) a vaping product drug.
Removal by Minister
(3) Subsection (1) does not apply to the removal of a vaping
product for analysis or destruction by the Minister.
Prohibition — vaping products for
sale
158.43 No person shall purchase or receive for sale a vaping
product
(a) from a manufacturer that the person knows, or ought to
know, is not a vaping product licensee;
(b) that is required under this Act to be packaged and stamped
unless it is packaged and stamped in accordance with this Act; or
(c) that the person knows, or ought to know, is fraudulently
stamped.
Unlawful possession or sale of vaping
products
158.44 (1) Except if prescribed circumstances exist, no person, other
than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a
vaping product unless
(a) it is packaged; and
(b) it is stamped to indicate that vaping duty has been
paid.
Unlawful possession or sale —
specified vaping province
(2) Except if prescribed circumstances exist, no person, other
than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a
vaping product in a specified vaping province unless it is stamped to indicate that additional vaping duty in
respect of the specified vaping province has been paid.
Exception — possession of vaping
products
(3) Subsections (1) and (2) do not apply to the possession of
vaping products
(a) in the case of imported vaping products,
(i) by an excise warehouse licensee in their excise
warehouse,
(ii) by a sufferance warehouse licensee in their sufferance
warehouse, or
(iii) by a customs bonded warehouse licensee in their customs
bonded warehouse;
(b) by a prescribed person that is transporting the vaping
products under prescribed circumstances and conditions;
(c) by a person that possesses the vaping products for
analysis or destruction in accordance with subparagraph 158.66(a)(iv);
(d) by an accredited representative for their personal or
official use;
(e) by an individual who has imported the vaping products for
their personal use in quantities not in excess of prescribed limits;
(f) by an individual who has manufactured the vaping products
in accordance with subsection 158.35(3); or
(g) if the vaping products are vaping product drugs.
Exception — sale or offer for
sale
(4) Subsections (1) and (2) do not apply to the disposal,
sale, offering for sale or purchase of a vaping product if
(a) the vaping product is an imported vaping product, an
excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product for
export and the vaping product is exported by the licensee in accordance with this Act;
(b) the vaping product is an imported vaping product and an
excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product to
an accredited representative for their personal or official use; or
(c) the vaping product is a vaping product drug.
Sale or distribution by licensee
158.45 (1) Except if prescribed circumstances exist, no vaping
product licensee shall distribute a vaping product or sell or offer for sale a vaping product to a person
unless
(a) it is packaged;
(b) it is stamped to indicate that vaping duty has been paid;
and
(c) if additional vaping duty in respect of a specified vaping
province is imposed on the vaping product, it is stamped to indicate that the additional vaping duty has been
paid.
Exceptions
(2) Subsection (1) does not apply to the distribution, sale or
offering for sale of a vaping product by a vaping product licensee
(a) if the distribution, sale or offering for sale is
to
(i) another vaping product licensee, or
(ii) an accredited representative for their personal or
official use;
(b) if the vaping product is exported by the vaping product
licensee in accordance with this Act; or
(c) if the vaping product is a vaping product drug.
Packaging and stamping of vaping
products
158.46 A vaping product licensee that manufactures a vaping
product shall not enter the vaping product into the duty-paid market unless
(a) the vaping product has been packaged by the
licensee;
(b) the package has printed on it prescribed
information;
(c) the vaping product is stamped at the time of packaging to
indicate that vaping duty has been paid; and
(d) if the vaping product is to be entered in the duty-paid
market of a specified vaping province, the vaping product is stamped at the time of packaging to indicate that
additional vaping duty in respect of the specified vaping province has been paid.
Packaging and stamping of imported vaping
products
158.47 (1) Except if prescribed circumstances exist, if a vaping
product is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,
(a) be packaged in a package that has printed on it prescribed
information;
(b) be stamped to indicate that vaping duty has been paid;
and
(c) if the vaping product is to be entered in the duty-paid
market of a specified vaping province, be stamped to indicate that additional vaping duty in respect of the
specified vaping province has been paid.
Exceptions for certain
importations
(2) Subsection (1) does not apply to a vaping product
(a) that is imported by a vaping product licensee for further
manufacturing by the licensee;
(b) that a vaping product licensee is authorized to import
under subsection 158.53(2); or
(c) that is imported by an individual for their personal use
in quantities not in excess of prescribed limits.
Notice — absence of stamping
158.48 (1) The absence on a vaping product of stamping that indicates
that vaping duty has been paid is notice to all persons that vaping duty has not been paid on the vaping
product.
Notice — specified vaping
province
(2) The absence on a vaping product of stamping that indicates
that additional vaping duty in respect of a specified vaping province has been paid is notice to all persons
that additional vaping duty in respect of the specified vaping province has not been paid on the vaping
product.
Unstamped products to be
warehoused
158.49 If vaping products manufactured in Canada are not stamped
by a vaping product licensee, the vaping product licensee must immediately enter the vaping products into the
licensee’s excise warehouse.
Vaping product markings —
warehousing
158.5 (1) Subject to subsection (4), no person shall enter into an
excise warehouse a container of vaping products unless the container has printed on it, or affixed to it, vaping
product markings and other prescribed information.
Vaping product markings —
imports
(2) Subject to subsections (3) and (4), no person shall
deliver a container of imported vaping products that does not have printed on it, or affixed to it, vaping
product markings and other prescribed information to
(a) an accredited representative; or
(b) a customs bonded warehouse.
Delivery of imported stamped vaping
products
(3) A container of imported vaping products that were
manufactured outside Canada and are stamped may be delivered to a customs bonded warehouse.
Exception in prescribed
circumstances
(4) A container of vaping products does not require vaping
product markings to be printed on it, or affixed to it, if prescribed circumstances exist.
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.
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.
Exception
(3) Subsections (1) and (2) do not apply in prescribed
circumstances.
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.
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.
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.
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
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.
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.
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.
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
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 packaged; and
(b) in the case of 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.
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 packaged; and
(b) in the case of 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.
Application of Customs Act
158.59 The duties imposed under sections 158.57 and 158.58 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.
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.
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).
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
Excise Warehouses
Restriction — entering vaping
products
158.67 No person shall enter into an excise warehouse
(a) a vaping product that is stamped; or
(b) any other vaping product except in accordance with this
Act.
Prohibition on removal
158.68 (1) Except if prescribed circumstances exist, no person shall
remove from an excise warehouse vaping products manufactured in Canada.
Removal of Canadian manufactured vaping
products
(2) Subject to the regulations, a vaping product manufactured
in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured it only if
it is
(a) for export by the licensee in accordance with this Act;
or
(b) for delivery to an accredited representative for their
official or personal use.
Removal from warehouse for re-working or
destruction
(3) Subject to the regulations, vaping products manufactured
in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured them if they
are removed for re-working or destruction by the licensee in accordance with section 158.53.
Removal of imported vaping
products
158.69 (1) Except if prescribed circumstances exist, no person shall
remove imported vaping products from an excise warehouse.
Exception
(2) Subject to the regulations, imported vaping products may
be removed from an excise warehouse
(a) for delivery to another excise warehouse;
(b) for delivery to an accredited representative for their
official or personal use; or
(c) for export by the excise warehouse licensee in accordance
with this Act.
60 (1) The portion of
subsection 159(1) of the Act before paragraph (a) is replaced by the following:
Determination of fiscal months
159 (1) The fiscal months of a person other than a cannabis licensee or a vaping product licensee shall be determined in accordance with
the following rules:
(2) Subsection 159(1.01) of the Act is replaced by the following:
Fiscal months — cannabis or vaping product licensee
(1.01) For the purposes of this Act, the fiscal months of a cannabis licensee or a vaping product licensee are calendar months.
61 Section 180 of the Act is replaced by the following:
No refund — exportation
180 Subject to this Act, the
duty paid on any tobacco product, cannabis product, vaping
product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the
tobacco product, cannabis product, vaping product or
alcohol.
62 The Act is amended by adding the following after section 187.1:
Refund of duty — destroyed vaping
product
187.2 The Minister may refund to a vaping product licensee the
duty paid on a vaping product that is re-worked or destroyed by the licensee in accordance with section 158.53
if the licensee applies for the refund within two years after the vaping product is re-worked or
destroyed.
63 (1) Paragraph
206(1)(d) of the Act is replaced by the following:
(d) every person that transports a tobacco product, cannabis product or vaping product that is not stamped or non-duty-paid packaged
alcohol.
(2) Section 206 of the Act is amended by adding the following after subsection
(2.01):
Keeping records — vaping product
licensee
(2.02) Every vaping product licensee shall keep records that will
enable the determination of the amount of vaping product manufactured, received, used, packaged, re-worked, sold
or disposed of by the licensee.
64 (1) The portion of
section 214 of the Act before paragraph (a) is replaced by the following:
Unlawful production, sale, etc.
214 Every person that
contravenes any of sections 25, 25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, 62, 158.02, 158.04
to 158.06, 158.08, 158.1 and 158.37 to 158.39 is guilty of an
offence and liable
(2) The portion of section 214 of the Act before paragraph (a), as enacted by
subsection (1), is replaced by the following:
Unlawful production, sale, etc.
214 Every person that
contravenes any of sections 25, 25.2 to 25.4, 27 and 29, subsection 32.1(1) and sections 60, 62, 158.02, 158.04
to 158.06, 158.08, 158.1, 158.35, 158.37 to 158.39, 158.41 and 158.43 is guilty of an offence and liable
65 The Act is amended by adding the following after section 218.1:
Punishment — sections 158.44 and
158.45
218.2 (1) Every person that contravenes section 158.44 or 158.45 is
guilty of an offence and liable
(a) on conviction on indictment, to a fine of not less than
the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to
imprisonment for a term of not more than five years, or to both; or
(b) on summary conviction, to a fine of not less than the
amount determined under subsection (2) and not more than the lesser of $500,000 and the amount determined under
subsection (3) or to imprisonment for a term of not more than 18 months, or to both.
Minimum amount
(2) The amount determined under this subsection for an offence
under subsection (1) is the greater of
(a) the amount determined by the formula
(A + B) × 200%
where
A is the amount determined under Schedule 8 in
respect of the vaping products to which the offence relates, using the rates of duty applicable at the time the
offence was committed, and
B is
(i) if the offence occurred in a specified vaping province,
the amount determined for A, and
(ii) in any other case, 0, and
(b) $1,000 in the case of an indictable offence and $500 in
the case of an offence punishable on summary conviction.
Maximum amount
(3) The amount determined under this subsection for an offence
under subsection (1) is the greater of
(a) the amount determined by the formula
(A + B) × 300%
where
A is the amount determined under Schedule 8 in
respect of the vaping products to which the offence relates, using the rates of duty applicable at the time the
offence was committed, and
B is
(i) if the offence occurred in a specified vaping province,
the amount determined for A, and
(ii) in any other case, 0, and
(b) $2,000 in the case of an indictable offence and $1,000 in
the case of an offence punishable on summary conviction.
66 Paragraph 230(1)(a) of the Act is replaced by the following:
(a) the commission of an offence under section 214 or subsection 216(1), 218(1),
218.1(1), 218.2(1) or 231(1); or
67 Paragraph 231(1)(a) of the Act is replaced by the following:
(a) the commission of an offence under section 214 or subsection 216(1), 218(1), 218.1(1)
or 218.2(1); or
68 Subsection 232(1) of the Act is replaced by the following:
Part XII.2 of Criminal Code applicable
232 (1) Sections 462.3 and 462.32 to 462.5 of the Criminal Code apply, with any modifications that the
circumstances require, in respect of proceedings for an offence under section 214, subsection 216(1), 218(1),
218.1(1) or 218.2(1) or section 230 or 231.
69 The Act is amended by adding the following after section 233.1:
Contravention of section 158.46 or
158.49
233.2 Every vaping product licensee that contravenes section
158.46 or 158.49 is liable to a penalty equal to the amount determined by the formula
(A + B) × 200%
where
A is the amount determined under Schedule 8 in
respect of the vaping products to which the contravention relates, using the rates of duty applicable at the
time the contravention occurred; and
B is
(a) if the contravention occurred in a specified vaping
province, the amount determined for A, and
(b) in any other case, 0.
70 (1) Subsection 234(1)
of the Act is replaced by the following:
Contravention of certain sections
234 (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151, 158.15,
158.5 or 158.67 is
liable to a penalty of not more than $25,000.
(2) Subsection 234(1) of the Act, as enacted by subsection (1), is replaced by
the following:
Contravention of certain sections
234 (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151, 158.15,
158.5, 158.52 or 158.67 is liable to a penalty of not more than $25,000.
(3) Section 234 of the Act is amended by adding the following after subsection
(3):
Failure to comply
(4) Every person that fails to return or destroy stamps as
directed by the Minister under paragraph 158.4(b) is liable to a penalty of not more than $25,000.
(4) Subsection 234(4) of the Act, as enacted by subsection (3), is replaced by
the following:
Failure to comply
(4) Every person that fails to
return or destroy stamps as directed by the Minister under paragraph 158.4(b), or that fails to re-work or
destroy a vaping product in the manner authorized by the Minister under section 158.53, is liable to a penalty
of not more than $25,000.
71 The Act is amended by adding the following after section 234.1:
Contravention — sections 158.35 and
158.43 to 158.45
234.2 Every person that contravenes section 158.35, that
receives for sale vaping products in contravention of section 158.43 or that sells or offers to sell vaping
products in contravention of section 158.44 or 158.45 is liable to a penalty equal to the amount determined by
the formula
(A + B) × 200%
where
A is the amount determined under Schedule 8 in
respect of the vaping products to which the contravention relates, using the rates of duty applicable at the
time the contravention occurred; and
B is
(a) if the contravention occurred in a specified vaping
province, the amount determined for A, and
(b) in any other case, 0.
72 Subsection 237(6) of the Act is replaced by the following:
Diversion of unstamped vaping
products
(5.1) Every vaping product licensee is liable to a penalty in
respect of a vaping product manufactured in Canada that is removed from the excise warehouse of the licensee for
a purpose described in subsection 158.68(2) if the product is not delivered or exported, as the case may be, for
that purpose.
Diversion of imported vaping
products
(5.2) Every excise warehouse licensee is liable to a penalty in
respect of an imported vaping product that is removed from the excise warehouse of the licensee for a purpose
described in subsection 158.69(2) if the product is not delivered or exported, as the case may be, for that
purpose.
Amount of penalty for diversion of vaping
products
(5.3) The amount of a penalty for each vaping product that is
removed from an excise warehouse for a purpose referred to in subsection (5.1) or (5.2) and that is not
delivered or exported, as the case may be, for that purpose is equal to the amount determined by the
formula
(A + B) × 200%
where
A is the amount determined under Schedule 8 in
respect of the vaping product, using the rates of duty applicable at the time the vaping product is removed from
the excise warehouse; and
B is
(a) if at least one province is prescribed for the purposes of
the definition specified vaping province in section 2 at
the time the vaping product is removed from the excise warehouse, the amount determined for A, and
(b) in any other case, 0.
Exception
(6) A licensee that would otherwise be liable to a penalty under this section is not
liable if the licensee proves to the satisfaction of the Minister that the alcohol, tobacco product or vaping product that was removed from their excise warehouse or
special excise warehouse was returned to that warehouse.
73 The Act is amended by adding the following after section 238:
Penalty in respect of unaccounted vaping
products
238.01 (1) Every excise warehouse licensee is liable to a penalty in
respect of a vaping product entered into their excise warehouse if the licensee cannot account for the vaping
product
(a) as being in the warehouse;
(b) as having been removed from the warehouse in accordance
with this Act; or
(c) as having been destroyed by fire while kept in the
warehouse.
Amount of penalty
(2) The amount of a penalty for each vaping product that
cannot be accounted for is equal to the amount determined by the formula
(A + B) × 200%
where
A is the amount determined under Schedule 8 in
respect of the vaping product, using the rates of duty applicable at the time the vaping product is entered into
the excise warehouse; and
B is
(a) if at least one province is prescribed for the purposes of
the definition specified vaping province in section 2 at
the time the vaping product is entered into the excise warehouse, the amount determined for A, and
(b) in any other case, 0.
74 (1) Paragraph
238.1(1)(a) of the Act is replaced by the following:
(a) the person can demonstrate that the stamps were affixed to tobacco products, cannabis
products, vaping products or their containers in the manner
prescribed for the purposes of the definition stamped in
section 2 and that duty, other than special duty, has been paid on the tobacco products, cannabis products or
vaping products; or
(2) Subsection 238.1(2) of the Act is amended by striking out “or”
at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following
after paragraph (b):
(c) in the case of a vaping excise stamp
(i) if the stamp is in respect of a specified vaping province,
$10.00, and
(ii) in any other case, $5.00.
75 The portion of section 239 of the Act before paragraph (a) is replaced by
the following:
Other diversions
239 Unless section 237 applies,
every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol, a tobacco
product, a cannabis product or a vaping product if
76 Section 264 of the Act is replaced by the following:
Certain things not to be returned
264 Despite any other provision
of this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco, excise stamp,
tobacco product, cannabis product or vaping product that is
seized under section 260 must not be returned to the person from whom it was seized or any other person unless
it was seized in error.
77 Subsection 266(2) of the Act is amended by striking out “and”
at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following
after paragraph (e):
(f) a seized vaping product only to a vaping product
licensee.
78 (1) Paragraph
304(1)(c.1) of the Act is replaced by the following:
(c.1) respecting the types of security that are acceptable for the purposes of subsection
158.03(3) or 158.36(3), and the manner by which the amount of the
security is to be determined;
(2) Paragraph 304(1)(f) of the Act is replaced by the following:
(f) respecting the information to be provided on tobacco products, packaged alcohol,
cannabis products and vaping products and on containers of
tobacco products, packaged alcohol, cannabis products and vaping
products;
(3) Paragraph 304(1)(i) of the Act is replaced by the following:
(i) respecting the entry and removal of tobacco products, alcohol or vaping products from an excise warehouse or a special excise
warehouse;
(4) Paragraph 304(1)(n) of the Act is replaced by the following:
(n) respecting the sale under section 266 of alcohol, tobacco products, raw leaf tobacco,
specially denatured alcohol, restricted formulations, cannabis products or vaping products seized under section 260;
79 The Act is amended by adding the following after section 304.2:
Definition of coordinated vaping duty
system
304.3 (1) In this section, coordinated vaping duty system means the
system providing for the payment, collection and remittance of duty imposed under any of section 158.58 and
subsections 158.6(2) and 158.61(2) and any provisions relating to duty imposed under those provisions or to
refunds in respect of any such duty.
Coordinated vaping duty system
regulations — transition
(2) The Governor in Council may make regulations, in relation
to the joining of a province to the coordinated vaping duty system,
(a) prescribing transitional measures, including
(i) a tax on the inventory of vaping products held by a vaping
product licensee or any other person, and
(ii) a duty or tax on vaping products that are delivered prior
to the province joining that system; and
(b) generally to effect the implementation of that system in
relation to the province.
Coordinated vaping duty system
regulations — rate variation
(3) The Governor in Council may make regulations
(a) prescribing rules in respect of whether, how and when a
change in the rate of duty for a specified vaping province applies (in this section any such change in the rate
of duty is referred to as a “rate variation”), including rules deeming, in specified circumstances
and for specified purposes, the status of anything to be different than what it would otherwise be, including
when duty is imposed or payable and when duty is required to be reported and accounted for;
(b) if a manner of determining an amount of duty is to be
prescribed in relation to the coordinated vaping duty system,
(i) specifying the circumstances or conditions under which a
change in the manner applies, and
(ii) prescribing transitional measures in respect of a change
in the manner, including
(A) a tax on the inventory of vaping products held by a vaping
product licensee or any other person, and
(B) a duty or tax on vaping products that are delivered prior
to the change; and
(c) prescribing amounts and rates to be used to determine any
refund that relates to, or is affected by, the coordinated vaping duty system, excluding amounts that would
otherwise be included in determining any such refund, and specifying circumstances under which any such refund
shall not be paid or made.
Coordinated vaping duty system
regulations — general
(4) For the purpose of facilitating the implementation,
application, administration and enforcement of the coordinated vaping duty system or a rate variation or the
joining of a province to the coordinated vaping duty system, the Governor in Council may make regulations
(a) prescribing rules in respect of whether, how and when that
system applies and rules in respect of other aspects relating to the application of that system in relation to a
specified vaping province, including rules deeming, in specified circumstances and for specified purposes, the
status of anything to be different than what it would otherwise be, including when duty is imposed or payable
and when duty is required to be reported and accounted for;
(b) prescribing rules related to the movement of vaping
products between provinces, including a duty, tax or refund in respect of such movement;
(c) providing for refunds relating to the application of that
system in relation to a specified vaping province;
(d) adapting any provision of this Act or of the regulations
made under this Act to the coordinated vaping duty system or modifying any provision of this Act or those
regulations to adapt it to the coordinated vaping duty system;
(e) defining, for the purposes of this Act or the regulations
made under this Act, or any provision of this Act or those regulations, in its application to the coordinated
vaping duty system, words or expressions used in this Act or those regulations including words or expressions
defined in a provision of this Act or those regulations;
(f) providing that a provision of this Act or of the
regulations made under this Act, or a part of such a provision, does not apply to the coordinated vaping duty
system;
(g) prescribing compliance measures, including penalties and
anti-avoidance rules; and
(h) generally in respect of the application of that system in
relation to a province.
Conflict
(5) If a regulation made under this Act in respect of the
coordinated vaping duty system states that it applies despite any provision of this Act, in the event of a
conflict between the regulation and this Act, the regulation prevails to the extent of the conflict.
80 The Act is amended by adding, after Schedule 7, the Schedule 8 set out in
Schedule 1 to this Act.
Related Amendments
R.S., c. C-46
Criminal Code
81 (1) Subparagraph
(g)(i) of the definition offence in section 183
of the Criminal Code is replaced by the
following:
(i) section 214 (unlawful production, sale, etc., of tobacco, alcohol, cannabis or vaping products),
(2) Paragraph (g) of the definition offence in section 183 of the Act is amended by adding the
following after subparagraph (iii.1):
(iii.2) section 218.2 (unlawful possession, sale, etc., of
unstamped vaping products),
R.S., c. E-15
Excise Tax Act
82 The definition excisable goods in subsection 123(1) of the Excise Tax Act is replaced by the following:
excisable goods means beer or malt liquor (within the meaning assigned by section 4 of the
Excise Act) and spirits, wine, tobacco products,
cannabis products and vaping products (within the meaning
assigned by section 2 of the Excise Act,
2001); (produit soumis à
l’accise)
R.S., c. F-8; 1995, c. 17, s. 45(1)
Federal-Provincial Fiscal Arrangements Act
83 Subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act is amended by
adding the following in alphabetical order:
coordinated vaping product
taxation agreement means an agreement or
arrangement entered into by the Minister on behalf of the Government of Canada under Part III.3, including any
amendments or variations to the agreement or arrangement made in accordance with that Part; (accord de coordination de la taxation des produits de
vapotage)
84 The Act is amended by adding the following after section 8.82:
PART III.3
Coordinated Vaping Product Taxation Agreements
Coordinated Vaping Product Taxation
Agreement
8.9 (1) The Minister, with the approval of the Governor in
Council, may on behalf of the Government of Canada enter into an agreement or arrangement with the government of
a province respecting the taxation of vaping products and, without restricting the generality of the foregoing,
respecting
(a) the collection, administration and enforcement of taxes on
vaping products in respect of the province under a single Act of Parliament;
(b) the provision to the Government of Canada by the
government of the province, or to the government of the province by the Government of Canada, of
(i) information acquired in the administration and enforcement
of Acts imposing taxes on vaping products and Acts providing for rebates, refunds or reimbursements of taxes on
vaping products, paid or payable, or of amounts paid or payable as or on account of the taxation of vaping
products, and
(ii) other information related to the regulation of vaping and
the distribution of vaping products relevant to the system of taxation of vaping products under a single Act of
Parliament;
(c) the accounting for taxes collected in accordance with the
agreement;
(d) the implementation of and transition to the system of
taxation of vaping products contemplated under the agreement;
(e) payments, and the eligibility for payments, by the
Government of Canada to the government of the province in respect of the revenues from the system of taxation
contemplated under the agreement and to which the province is entitled under the agreement, the time when such
payments will be made, and the remittance by the government of the province to the Government of Canada of any
overpayments by the Government of Canada or the right of the Government of Canada to set off any overpayments
against other amounts payable by the Government of Canada to the government of the province, whether under the
agreement or any other agreement or arrangement or any Act of Parliament;
(f) the payment by the Government of Canada and its agents and
subservient bodies, and by the government of the province and its agents and subservient bodies, of the taxes on
vaping products payable under the system of taxation of vaping products contemplated under the agreement and the
accounting for the taxes on vaping products so paid;
(g) the compliance by the Government of Canada and its agents
and subservient bodies, and by the government of the province and its agents and subservient bodies, with the
Act of Parliament under which the system of taxation of vaping products is administered and regulations made
under that Act; and
(h) other matters that relate to, and that are considered
advisable for the purposes of implementing or administering, the system of taxation of vaping products
contemplated under the agreement.
Amending agreements
(2) The Minister, with the approval of the Governor in
Council, may on behalf of the Government of Canada enter into an agreement with the government of a province
amending or varying an agreement or arrangement with the province entered into under subsection (1) or this
subsection.
Payments
8.91 If there is a coordinated vaping product taxation
agreement with the government of a province, the appropriate minister may pay to the province out of amounts
received in a fiscal year under the Act of Parliament referred to in paragraph 8.9(1)(a)
(a) amounts determined in accordance with the agreement as
provided, and at such times as are specified, in the agreement; and
(b) subject to the regulations, advances in respect of the
amounts referred to in paragraph (a).
Statutory authority to make
payments
8.92 Despite any other Act, the payments paid under a
coordinated vaping product taxation agreement under the authority of section 8.91 may be made without any other
or further appropriation or authority.
85 (1) Paragraph 40(b)
of the Act is replaced by the following:
(b) respecting the calculation and payment to a province of advances on account of any
amount that may become payable to the province under this Act, an administration agreement, a reciprocal
taxation agreement, a sales tax harmonization agreement, a coordinated cannabis taxation agreement or a coordinated vaping product taxation agreement and the adjustment,
by way of reduction or set off, of other payments to the province because of those advances;
(2) Paragraph 40(d) of the Act is replaced by the following:
(d) prescribing the time and manner of making any payment under this Act, an
administration agreement, a sales tax harmonization agreement, a coordinated cannabis taxation agreement or
a coordinated vaping product taxation agreement;
R.S., c. 1 (2nd Supp.)
Customs Act
86 Subsection 2(1) of the Customs Act is amended by adding the following in
alphabetical order:
immediate
container has the same meaning as in
section 2 of the Excise Act, 2001; (contenant immédiat)
vaping device has the same meaning as in section 2 of the Excise Act, 2001; (dispositif de vapotage)
vaping product has the same meaning as in section 2 of the Excise Act, 2001; (produit de vapotage)
vaping product
licensee has the same meaning as in
section 2 of the Excise Act, 2001; (titulaire de licence de produits de
vapotage)
vaping substance has the same meaning as in section 2 of the Excise Act, 2001; (substance de vapotage)
87 Subsection 97.25(3) of the Act is amended by adding the following after
paragraph (c):
(c.1) if the good is a vaping product, to a vaping product
licensee;
88 Subsection 109.2(2) of the Act is replaced by the following:
Contravention relating to tobacco, cannabis and vaping products and
to designated goods
(2) Every person that
(a) removes tobacco products,
cannabis products, vaping products or designated goods or causes
tobacco products, cannabis products, vaping products or
designated goods to be removed from a customs office, sufferance warehouse, bonded warehouse or duty free shop
in contravention of this Act or the Customs Tariff or
the regulations made under those Acts, or
(b) sells or uses tobacco
products or designated goods designated as ships’ stores in contravention of this Act or the Customs Tariff or the regulations made under those
Acts,
is liable to a penalty equal to
double the total of the duties that would be payable on like tobacco products, cannabis products, vaping products or designated goods released in like condition at the
rates of duties applicable to like tobacco products, cannabis products, vaping products or designated goods at the time the penalty is
assessed, or to such lesser amount as the Minister may direct.
89 Subsection 117(2) of the Act is replaced by the following:
No return of certain goods
(2) Despite subsection (1), if
spirits, wine, specially denatured alcohol, restricted formulations, cannabis, raw leaf tobacco, excise stamps,
tobacco products or vaping products are seized under this Act,
they shall not be returned to the person from whom they were seized or any other person unless they were seized
in error.
90 Subsection 119.1(1.1) of the Act is amended by striking out
“and” at the end of paragraph (c) and by adding the following after that paragraph:
(c.1) a vaping product may only be to a vaping product licensee;
and
91 The portion of subsection 142(1) of the Act before paragraph (a) is
replaced by the following:
Disposal of things abandoned or forfeit
142 (1) Unless the thing is spirits, specially denatured alcohol, a restricted formulation,
wine, raw leaf tobacco, an excise stamp, a tobacco product or a vaping
product, anything that has been abandoned to Her Majesty in right of Canada under this Act and anything
the forfeiture of which is final under this Act shall
92 (1) Subsection
142.1(1) of the Act is replaced by the following:
Dealing with abandoned or forfeited alcohol, etc.
142.1 (1) If spirits, specially denatured alcohol, a restricted formulation, wine, raw leaf
tobacco, a tobacco product or a vaping product is abandoned or
finally forfeited under this Act, the Minister may sell, destroy or otherwise deal with it.
(2) Subsection 142.1(2) of the Act is amended by striking out “and”
at the end of paragraph (c) and by adding the following after that paragraph:
(c.1) a vaping product may only be to a vaping product licensee;
and
93 Paragraph 164(1)(h.2) of the Act is replaced by the following:
(h.2) respecting the sale of alcohol, a tobacco product, raw leaf tobacco, specially
denatured alcohol, a restricted formulation or a vaping product
detained, seized, abandoned or forfeited under this Act;
1997, c. 36
Customs Tariff
94 Paragraph 83(a) of the Customs Tariff 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, vaping products
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, vaping products and tobacco and
up to the maximum quantities specified in tariff item No. 9804.10.00 or 9804.20.00, as the case may be;
95 Subsection 89(2) of the Act is replaced by the following:
Exception
(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, vaping products
or designated goods.
96 Subsection 113(2) of the Act is replaced by the following:
No refund
(2) No refund or drawback of
the duties imposed on tobacco products or vaping 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.
97 (1) The Description
of Goods of tariff item No. 9804.10.00 in the List of Tariff Provisions set out in the schedule to the Act is
amended by replacing the reference beginning with “For the purpose of this tariff item,” and ending
with “of manufactured tobacco.” with a reference to “For the purpose of this tariff item,
goods may include either wine not exceeding 1.5 litres or any alcoholic beverages not exceeding 1.14 litres,
tobacco not exceeding fifty cigars, two hundred cigarettes, two hundred tobacco sticks and two hundred grams of
manufactured tobacco, and vaping products not exceeding 120 millilitres of vaping substance in liquid form, or
120 grams of vaping substance in solid form, within any combination of not more than twelve vaping devices and
immediate containers.”
(2) Paragraphs (a) and (b) of the Description of Goods of tariff item No.
9804.20.00 in the List of Tariff Provisions set out in the schedule to the Act are replaced by the
following:
(a) goods may include either wine not exceeding 1.5 litres or any alcoholic beverages not
exceeding 1.14 litres, tobacco not exceeding fifty cigars, two hundred cigarettes, two hundred tobacco sticks
and two hundred grams of manufactured tobacco, and vaping products not
exceeding 120 millilitres of vaping substance in liquid form, or 120 grams of vaping substance in solid form,
within any combination of not more than twelve vaping devices and immediate containers, if included in
the baggage accompanying the person at the time of return to Canada; and
(b) if goods (other than
alcoholic beverages, cigars, cigarettes, tobacco sticks, manufactured tobacco and vaping products) acquired abroad are not included in the baggage
accompanying the person, they may be classified under this tariff item if they are reported by the person at
time of return to Canada.
(3) The Description of Goods of tariff item No. 9804.30.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by replacing the reference beginning with
“For the purpose of this tariff item,” and ending with “or manufactured tobacco.” with a
reference to “For the purpose of this tariff item, goods shall not include those which could otherwise be
imported into Canada free of duties, nor alcoholic beverages, cigars, cigarettes, tobacco sticks, manufactured
tobacco or vaping products.”
(4) The Description of Goods of tariff item No. 9804.40.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by replacing the reference beginning with
“For the purpose of this tariff item,” and ending with “or manufactured tobacco.” with a
reference to “For the purpose of this tariff item, goods shall not include alcoholic beverages, cigars,
cigarettes, tobacco sticks, manufactured tobacco or vaping products.”
(5) Paragraphs (a) and (b) of the Description of Goods of tariff item No.
9805.00.00 in the List of Tariff Provisions set out in the schedule to the Act are replaced by the
following:
(a) the provisions shall apply to either wine not exceeding 1.5 litres or any alcoholic
beverages not exceeding 1.14 litres, tobacco not exceeding fifty cigars, two hundred cigarettes, two hundred
tobacco sticks and two hundred grams of manufactured tobacco, and vaping
products not exceeding 120 millilitres of vaping substance in liquid form, or 120 grams of vaping substance in
solid form, within any combination of not more than twelve vaping devices and immediate containers, if
they are included in the baggage accompanying the importer, and no relief from payment of duties is being
claimed in respect of alcoholic beverages, tobacco or vaping
products under another item in this Chapter at the time of importation;
(b) if goods (other than
alcoholic beverages, cigars, cigarettes, tobacco sticks, manufactured tobacco and vaping products) are not accompanying the person returning from
abroad, they may be classified under this item when imported at a later time if they are reported by the person
at the time of return to Canada; and
(6) The Description of Goods of tariff item No. 9807.00.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by striking out “and” at the end of
subparagraph (a)(i), by adding “and” at the end of subparagraph (a)(ii), and by adding the following
after subparagraph (a)(ii):
(iii) vaping products not exceeding 120 millilitres of vaping
substance in liquid form, or 120 grams of vaping substance in solid form, within any combination of not more
than twelve vaping devices and immediate containers;
(7) Paragraph (c) of the Description of Goods of tariff item No. 9807.00.00 in
the List of Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to
“(other than alcoholic beverages, cigars, cigarettes, tobacco sticks and manufactured tobacco)” with
a reference to “(other than alcoholic beverages, cigars, cigarettes, tobacco sticks, manufactured tobacco
and vaping products)”.
(8) The Description of Goods of tariff item No. 9816.00.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “and not
being advertising matter, tobacco or alcoholic beverages,” with a reference to “and not being
advertising matter, tobacco, alcoholic beverages or vaping products,”.
(9) The Description of Goods of heading No. 98.25 in the List of Tariff
Provisions set out in the schedule to the Act is amended by replacing the reference to “alcoholic
beverages; tobacco; tobacco products;” with a reference to “alcoholic beverages; tobacco; tobacco
products; vaping products;”.
(10) 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 “alcoholic
beverages; tobacco; tobacco products;” with a reference to “alcoholic beverages; tobacco; tobacco
products; vaping products;”.
(11) The Description of Goods of tariff item No. 9827.00.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by replacing the reference beginning with
“Goods, which may include” and ending with “of manufactured tobacco,” with a reference
to “Goods, which may include either wine not exceeding 1.5 litres or any alcoholic beverages not exceeding
1.14 litres, tobacco products not exceeding fifty cigars, two hundred cigarettes, two hundred tobacco sticks and
two hundred grams of manufactured tobacco, and vaping products not exceeding 120 millilitres of vaping substance
in liquid form, or 120 grams of vaping substance in solid form, within any combination of not more than twelve
vaping devices and immediate containers,”.
(12) The Description of Goods of tariff item No. 9906.00.00 in the List of
Tariff Provisions set out in the schedule to the Act is amended by replacing the reference to “other than
alcoholic beverages and tobacco products,” with a reference to “other than alcoholic beverages,
tobacco products and vaping products,”.
SOR/81-701
Tariff Item No. 9805.00.00 Exemption Order
98 Section 3 of the Tariff Item
No. 9805.00.00 Exemption Order is amended by adding the following after paragraph (b):
(b.1) vaping products owned by and in the possession of the
importer;
SI/85-181
Postal Imports Remission Order
99 (1) Paragraph (a) of
the definition goods in section 2 of the Postal Imports Remission Order is replaced by the
following:
(a) alcoholic beverages, cannabis products, vaping products, cigars, cigarettes and manufactured tobacco;
(2) Section 2 of the Order is amended by adding the following in alphabetical
order:
vaping product has the same meaning as in section 2 of the Excise Act, 2001. (produit de vapotage)
SI/85-182; SI/92-128, s. 2(F)
Courier Imports Remission Order
100 (1) Paragraph (a) of
the definition goods in section 2 of the Courier Imports Remission Order is replaced by the
following:
(a) alcoholic beverages, cannabis products, vaping products, cigars, cigarettes and manufactured tobacco;
(2) Section 2 of the Order is amended by adding the following in alphabetical
order:
vaping product has the same meaning as in section 2 of the Excise Act, 2001. (produit de vapotage)
SOR/86-1065
Customs Sufferance Warehouses Regulations
101 Subsection 15(4) of the Customs
Sufferance Warehouses Regulations is replaced by the following:
(4) For the purposes of subsection 39.1(1) of the Act, firearms, prohibited ammunition,
prohibited devices, prohibited or restricted weapons, tobacco products and vaping products are goods of a prescribed class that are forfeit if
they are not removed from a sufferance warehouse within 14 days after the day on which they were reported under
section 12 of the Act.
102 Paragraph 17(a) of the Regulations is replaced by the following:
(a) stamping the goods, if the goods consist of
(i) imported raw leaf tobacco or imported tobacco products that are placed in the
sufferance warehouse in accordance with section 39 of the Excise Act, 2001, or
(ii) imported vaping products that are placed in the sufferance
warehouse in accordance with section 158.51 of the Excise Act,
2001;
SOR/87-720
Non-residents’ Temporary Importation of Baggage and Conveyances Regulations
103 Section 2 of the Non-residents’ Temporary Importation of Baggage and Conveyances
Regulations is amended by adding the following in alphabetical order:
immediate
container has the same meaning as in
section 2 of the Excise Act, 2001; (contenant immédiat)
vaping device has the same meaning as in section 2 of the Excise Act, 2001; (dispositif de vapotage)
vaping substance has the same meaning as in section 2 of the Excise Act, 2001; (substance de vapotage)
104 Subsection 4(1) of the Regulations is amended by striking out
“or” at the end of paragraph (b) and by adding the following after that paragraph:
(b.1) 120 millilitres of vaping substance in liquid form, or 120
grams of vaping substance in solid form, within any combination of not more than twelve vaping devices and
immediate containers; or
SOR/90-225
Tariff Item No. 9807.00.00 Exemption Order
105 Paragraph 2(b) of the Tariff
Item No. 9807.00.00 Exemption Order is replaced by the following:
(b) tobacco products and vaping
products;
SOR/96-46
Customs Bonded Warehouses Regulations
106 Section 2 of the Customs Bonded
Warehouses Regulations is amended by adding the following in alphabetical order:
vaping product has the same meaning as in section 2 of the Excise Act, 2001; (produit de vapotage)
107 Section 14 of the Regulations is amended by striking out “and”
at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following
after paragraph (f):
(g) vaping products that are not stamped.
108 The Regulations are amended by adding the following after section
16:
16.1 No licensee shall receive into or remove from a bonded
warehouse imported vaping products unless they are to be removed from the warehouse for sale to a foreign
diplomat in Canada or export from Canada.
109 Section 18 of the Regulations is replaced by the following:
18 For the purposes of subsections 37(2) and 39.1(2) of the Customs Act, tobacco products, packaged spirits and vaping products are a prescribed class of goods and are forfeit if
they have not been removed from the bonded warehouse within five years of the day on which the goods are
described in the form prescribed under subsection 19(2) of that Act.
SOR/2003-115
Regulations Respecting Excise Licences and Registrations
110 Subparagraph 2(2)(b)(i) of the Regulations Respecting Excise Licences and Registrations is replaced by the
following:
(i) failed to comply with any Act of Parliament, other than the Act, or of the
legislature of a province respecting the taxation of or controls on alcohol, tobacco products or vaping products or any regulations made under it, or
111 Section 4 of the Regulations is replaced by the following:
4 A licence is valid for the period specified in the licence, which period shall not
exceed
(a) in the case of a vaping product licence, three years;
and
(b) in any other case,
two years.
112 (1) The portion of
subsection 5(1) of the Regulations before paragraph (a) is replaced by the following:
5 (1) For the purposes of
paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a
tobacco licence, a cannabis licence or a vaping product licence
is an amount of not less than $5,000 and
(2) Paragraph 5(1)(b) of the Regulations is replaced by the following:
(b) in the case of a tobacco licence, a cannabis licence or a vaping product licence, be sufficient to ensure payment of the
amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence.
113 Paragraph 12(1)(e) of the Regulations is replaced by the following:
(e) fails to comply with any Act of Parliament, other than the Act, or of the legislature
of a province respecting the taxation of or controls on alcohol, tobacco products or vaping products, or any regulations made under it; or
SOR/2003-203; 2018, c. 12, s. 106
Regulations Respecting the Possession of Tobacco Products or Cannabis Products That Are Not Stamped
114 The title of the Regulations
Respecting the Possession of Tobacco Products or Cannabis Products That Are Not Stamped is replaced by
the following:
Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That
Are Not Stamped
115 The Regulations are amended by adding the following after section
1.3:
1.4 For the purposes of paragraph 158.44(3)(b) of the Excise Act, 2001, a person may possess a vaping product that
is not stamped if
(a) the person is authorized by an officer under section 19 of
the Customs Act to transport vaping products that have
been reported under section 12 of that Act and is acting in accordance with that authorization; or
(b) the person has in their possession documentation that
provides evidence that the person is transporting the vaping product on behalf of
(i) a vaping product licensee,
(ii) an excise warehouse licensee, or
(iii) an accredited representative.
SOR/2003-288; 2018, c. 12, s. 108
Stamping and Marking of Tobacco and Cannabis Products Regulations
116 The title of the Stamping and
Marking of Tobacco and Cannabis Products Regulations is replaced by the following:
Stamping
and Marking of Tobacco, Cannabis and Vaping Products Regulations
117 Paragraph 2(c) of the Regulations is replaced by the following:
(c) a cannabis product or a vaping product
is packaged in a prescribed package when it is packaged in the smallest package — including any outer
wrapper, package, box or other container — in which it is sold to the consumer.
118 (1) Subsection 4(1)
of the Regulations is replaced by the following:
4 (1) For the purposes of subsections 25.1(1) and
158.36(1) of the Act, a prescribed person is a person that satisfies the requirements set out in paragraphs 2(2)(a) to (e)
of the Regulations Respecting Excise Licences and
Registrations.
(2) Section 4 of the Regulations is amended by adding the following after
subsection (3):
(4) For the purposes of paragraph 158.38(2)(d) of the Act, the
following persons are prescribed:
(a) a person that transports a vaping excise stamp on behalf
of a person described in paragraph 158.38(2)(a) or (b) of the Act; and
(b) a person that has in their possession vaping excise stamps
only for the purpose of applying adhesive to the stamps on behalf of the vaping product licensee to which the
stamps are issued.
119 The Regulations are amended by adding the following after section 4:
4.01 (1) If the Minister holds, at any time in a calendar month,
security that a person has provided under subsection 158.36(3) of the Act and if the person is not a vaping
product licensee throughout the calendar month, the person must file with the Minister an information return for
the calendar month in respect of the possession and use of any vaping excise stamps issued to the person.
(2) The information return of a person for a particular
calendar month must
(a) be made in prescribed form containing prescribed
information; and
(b) be filed in prescribed manner on or before the last day of
the first calendar month following the particular calendar month.
120 The Regulations are amended by adding the following after section
4.1:
4.11 (1) Subject to subsections (2) to (4), the amount of security
for the purpose of subsection 158.36(3) of the Act is the greater of
(a) $1.00 multiplied by the number of vaping excise stamps
that either are in the applicant’s possession at the time of application or are to be issued in respect of
the application, and
(b) $5,000.
(2) Subject to subsections (3) and (4), if the amount
determined under paragraph (1)(a) is greater than $5 million, the amount of security for the purpose of
subsection 158.36(3) of the Act is $5 million.
(3) If a person has provided security under paragraph 23(3)(b)
of the Act in an amount that is equal to or greater than the amount of security determined in accordance with
subsections (1) and (2), the amount of security for the purpose of subsection 158.36(3) of the Act is
nil.
(4) If a person has provided security under paragraph 23(3)(b)
of the Act in an amount that is less than the amount of security determined in accordance with subsections (1)
and (2), the amount of security for the purpose of subsection 158.36(3) of the Act is the difference between the
amount of security determined in accordance with subsections (1) and (2) and the amount of security provided by
the person under paragraph 23(3)(b) of the Act.
121 The portion of section 4.2 of the Regulations before paragraph (a) is
replaced by the following:
4.2 For the purposes of the definition stamped in section 2 of the Act and subsections 25.3(1),
158.05(1) and 158.38(1) of the Act, the prescribed manner of
affixing an excise stamp to a package is by affixing the stamp
122 The Regulations are amended by adding the following after section 5:
5.1 (1) For the purposes of paragraphs 158.44(3)(e) and
158.47(2)(c) and section 158.56 of the Act, the prescribed limit is five units of vaping products.
(2) For the purposes of subsection (1), a unit of vaping
products consists of 120 millilitres of vaping substance in liquid form, or 120 grams of vaping substance in
solid form, within any combination of not more than 12 vaping devices and immediate containers.
123 The heading after section 7 of the Regulations is replaced by the
following:
Vaping Product Marking
8 (1) For the purposes of subsection 158.5(1) of the Act, the
required vaping product markings are
(a) for containers of vaping products manufactured in Canada,
the marking set out in Schedule 7; and
(b) for containers of vaping products manufactured outside
Canada, the marking set out in Schedule 8.
(2) The vaping product markings must be printed on or affixed
to the container in a conspicuous manner and in accordance with the specifications set out in the appropriate
Schedule.
9 (1) For the purposes of subsection 158.5(2) of the Act, the
required vaping product marking is the marking set out in Schedule 8.
(2) The vaping product marking must be printed on or affixed
to the container in a conspicuous manner and in accordance with the specifications set out in Schedule 8.
124 Schedule 7 to the Regulations is amended by replacing the reference after
the heading “SCHEDULE 7” with the following:
(Sections 6 and
8)
125 The heading of Schedule 7 to the Regulations is replaced by the
following:
Marking for Containers of Manufactured Tobacco, Cigars and Vaping Products Manufactured in Canada
126 Schedule 8 to the Regulations is amended by replacing the reference after
the heading “SCHEDULE 8” with the following:
(Sections 6 to
9)
127 The heading of Schedule 8 to the Regulations is replaced by the
following:
Marking for Containers of Manufactured Tobacco, Cigars and Vaping Products Manufactured Outside Canada, Containers of Cigars Manufactured in Canada and Intended for Delivery to a Duty Free Shop or as Ships’ Stores and Containers of Imported Manufactured Tobacco and Cigars Referred to in Subsection 38(2) of the Act
Application
128 (1) Sections 158.35, 158.51 to 158.53, 158.68 and 158.69 of the
Excise Act, 2001, as enacted by section 59, subsection 64(2),
sections 65 to 69,
subsections 70(2) and (4), sections 71, 72 and 75, subsection 81(2)
and sections 82, 87 to 105, 115 and 122 come into
force on October 1, 2022.
(2) Sections 158.41, 158.57 and 158.58 of the Excise Act, 2001, as enacted by section 59, apply in respect of vaping products manufactured in Canada that
are packaged on or after October 1, 2022 and to vaping products that are imported into Canada or released (as defined in subsection 2(1) of the Customs Act) on or after that day. Those sections of the Excise Act, 2001 also apply in respect of
(a) vaping products manufactured in Canada that are packaged before
October 1, 2022 if the vaping products are stamped after the day on which this Act receives royal assent;
and
(b) vaping products that are imported into Canada or released (as defined in subsection 2(1) of the Customs Act) after the day on which this Act receives royal assent but before
October 1, 2022 if the vaping products are stamped when they are reported under the Customs Act.
(3) Sections 158.42 to 158.47 and 158.49, subsection 158.5(2), sections
158.54 to 158.56, 158.6 and 158.61 of the Excise Act, 2001, as enacted by section 59, subsection 63(1)
and sections 107 to 109 come into force on October 1, 2022. However, those provisions of
the Excise Act, 2001, subsection 63(1) and
sections 107 to 109 do not apply before 2023 in respect of
(a) vaping products manufactured in Canada that are packaged before
October 1, 2022 and that are not stamped; and
(b) vaping products that are imported into Canada or released (as defined in subsection 2(1) of the Customs Act) before October 1, 2022 and that are not stamped.
(4) In
applying sections 158.57 and 158.58 of the Excise Act, 2001, as enacted by section 59, in respect of vaping products manufactured in Canada that are
packaged before October 1, 2022, paragraph (a) of each of those sections 158.57 and 158.58 is to be read as
follows:
(a) in the case of vaping
products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the
later of the beginning of October 1, 2022 and the time they are stamped; and
DIVISION 2
2002, c. 22
Excise Act, 2001 (Wine)
129 (1) Section 87 of the
Excise Act, 2001 is amended by adding “and”
at the end of paragraph (a) and by repealing paragraph (a.1).
(2) Subsection (1) comes into force, or is deemed to have come into force, on
June 30, 2022.
130 (1) Paragraph
88(2)(i) of the Act is replaced by the following:
(i) that is wine referred to in paragraph 135(2)(b) may be possessed by any person;
and
(2) Subsection (1) comes into force, or is deemed to have come into force, on
June 30, 2022, but does not apply to wine packaged before that day.
131 (1) Subsection 134(3)
of the Act is replaced by the following:
Exception
(3) Subsection (1) does not
apply to wine that is produced by an individual for their personal use and that is consumed in the course of
that use.
(2) Subsection (1) applies to wine taken for use on or after June 30,
2022.
132 (1) Paragraph
135(2)(a) of the Act is repealed.
(2) Subsection (1) applies to wine packaged on or after June 30, 2022.
DIVISION 3
R.S., c. E-12
Excise Act (Beer)
133 (1) The portion of
the definition beer or malt liquor in section 4 of the Excise Act before paragraph (a) is replaced by the
following:
beer or malt liquor means any product
(other than wine, as defined in section 2 of the Excise Act, 2001) containing more than 0.5% absolute ethyl alcohol by volume that
is
(2) Subsection (1) comes into force, or is deemed to have come into force, on
July 1, 2022.
134 (1) Subsection
170.1(3) of the Act is replaced by the following:
Exclusion of exports
(3) In subsection (1), the
reference to “first 75,000 hectolitres of beer and malt liquor brewed in Canada” does not include
beer or malt liquor that is exported or deemed to be exported under section 173.
(2) Subsection (1) comes into force, or is deemed to have come into force, on
July 1, 2022.
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