Draft Regulations Making the Excise Duties on Vaping Products Regulations and Amending Various Regulations Relating to Excise Duties
Excise Duties on Vaping Products Regulations
1 The Excise Duties on Vaping Products Regulations are made as follows:
Excise Duties on Vaping Products Regulations
Marginal note:Meaning of Act
1 For the purposes of these Regulations, Act means the Excise Act, 2001.
Marginal note:Specified vaping provinces
2 For the purposes of the definition specified vaping province in section 2 of the Act, the following provinces are prescribed:
Marginal note:Section 158.58 of Act — prescribed circumstances
3 For the purposes of section 158.58 of the Act, a duty in respect of a specified vaping province is imposed under that section on vaping products manufactured in Canada, or imported, if
(a) in the case of vaping products that are imported by an individual for their personal use, the individual is resident in the specified vaping province; and
(b) in any other case, the vaping products are for consumption, use or sale to consumers in the specified vaping province.
Marginal note:Subsection 158.6(2) of Act — prescribed circumstances
4 For the purposes of subsection 158.6(2) of the Act, a duty in respect of a specified vaping province is imposed under that subsection on vaping products if
(a) the vaping products are not stamped; and
(b) the location of the vaping products at the particular time referred to in that subsection is in the specified vaping province.
Marginal note:Subsection 158.61(2) of Act — prescribed circumstances
5 For the purposes of subsection 158.61(2) of the Act, a duty in respect of a specified vaping province is imposed under that subsection on vaping products that cannot be accounted for if
(a) the vaping products are not stamped;
(b) the last known location of the vaping products before the particular time referred to in that subsection is in the specified vaping province; and
(c) the particular person referred to in that subsection is not convicted of an offence under section 218.2 of the Act in respect of the vaping products.
Marginal note:Additional vaping duty — calculation of duty
6 For the purposes of section 158.58 and subsections 158.6(2) and 158.61(2) of the Act, the amount of duty imposed under those provisions in respect of vaping products and a specified vaping province is equal to the amount determined in respect of the vaping products under Schedule 8 to the Act.
Marginal note:2024 transition — July 1 to September 30
7 For the purpose of facilitating the implementation of the coordinated vaping duty system (as defined in subsection 304.3(1) of the Act), subparagraph 158.42(1)(a)(ii), subsection 158.44(2) and paragraphs 158.45(1)(c) and 158.46(d) of the Act do not apply before October 2024 in respect of
(a) vaping products that are manufactured in Canada and that are stamped before July 2024;
(b) packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee and that are stamped before July 2024; and
(c) any other imported vaping products that are imported or released (as defined in subsection 2(1) of the Customs Act) before July 2024.
Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped
2 The Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped are amended by adding the following after section 1.3:
1.31 For the purposes of subsection 158.44(2) of the Excise Act, 2001, a person may possess vaping products in a particular specified vaping province that are not stamped to indicate that additional vaping duty in respect of the particular specified vaping province has been paid if
(a) the vaping products are to be sold or offered for sale by the person, or by another person, to consumers in another province and, if the other province is a specified vaping province, the vaping products are stamped to indicate that additional vaping duty in respect of the other province has been paid; or
(b) the person is an individual who possesses the vaping products for their personal use.
Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations
3 Paragraph 4.11(1)(a) of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is replaced by the following:
(a) the total of
(i) $2.00 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 that are in respect of any specified vaping province, and
(ii) $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 that are not in respect of any specified vaping province, and
Coming into Force
4 (1) Subject to subsections (2) and (3), the Excise Duties on Vaping Products Regulations, as made by section 1, and section 3 come into force on the day on which these Regulations are published in the Canada Gazette, Part II.
(2) Section 3 of the Excise Duties on Vaping Products Regulations, as made by section 1, applies in respect of
(a) vaping products that are manufactured in Canada and that are stamped after June 2024;
(b) packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee and that are stamped after June 2024; and
(c) any other imported vaping products that are imported or released (as defined in subsection 2(1) of the Customs Act) after June 2024.
(3) Sections 4 and 5 of the Excise Duties on Vaping Products Regulations, as made by section 1, and section 2 come into force on July 1, 2024.
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