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Excise Act, 2001

   1.  (1)  The definition "stamped" in section 2 of the Excise Act, 2001 is replaced by the following:

"stamped"

« estampillé »

"stamped", in respect of a tobacco product, means that an excise stamp, and all prescribed information in a prescribed format, are stamped, impressed, printed or marked on, indented into or affixed to the product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the product.

  (2)  Section 2 of the Act is amended by adding the following in alphabetical order:

"excise stamp"

« timbre d'accise »

"excise stamp" means a stamp that is issued by the Minister under subsection 25.1(1) and that has not been cancelled under section 25.5.

   2.  Section 5 of the Act is replaced by the following:

Constructive possession

   5.  (1)  For the purposes of sections 25.2 and 25.3, subsections 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1) and sections 230 and 231, 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.

Meaning of "possession"

  (2)  In this section and in sections 25.2 and 25.3, subsections 30(1), 32(1) and 32.1(1), section 61 and subsections 70(1) and 88(1), "possession" means not only having in one's own personal possession but also knowingly

    (a)  having in the actual possession or custody of another person; or

    (b)  having in any place, whether belonging to or occupied by one's self or not, for one's own use or benefit or that of another person.

  3.  The Act is amended by adding the following after section 25:

Issuance of excise stamps

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

Quantity of excise stamps

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

Security

  (3)  No person shall be issued an 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 excise stamps

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

Design and construction

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

Counterfeiting excise stamps

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

Unlawful possession of excise stamps

  25.3  (1)  No person shall possess an excise stamp that has not been affixed to a tobacco product or its container in the prescribed manner to indicate that duty, other than special duty, has been paid on the product.

Exceptions — possession

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

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

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

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

    (d)  a prescribed person.

Unlawful supply of excise stamps

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

Cancellation, return and destruction of excise stamps

  25.5  The Minister may

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

    (b)  direct that it be returned or destroyed in a specified manner.

  4.  The Act is amended by adding the following after subsection 206(2.1):

Keeping records — excise stamps

  (2.2)  Every person who has been issued an excise stamp shall keep all records that are necessary to determine the receipt, retention, location, use or disposition of the stamp.

  5.  The portion of section 214 of the Act before paragraph (a) is replaced by the following:

Unlawful production, sale, etc., of tobacco or alcohol

  214.  Every person who contravenes section 25, 25.2, 25.3, 25.4, 27 or 29, subsection 32.1(1) or section 60 or 62 is guilty of an offence and liable

  6.  Section 234 of the Act is replaced by the following:

Contravention of section 38, 40, 49, 61, 62.1, 99, 149 or 151

  234.  (1)  Every person who contravenes section 38, 40, 49, 61, 62.1, 99, 149 or 151 is liable to a penalty of not more than $25,000.

Failure to comply

  (2)  Every person who fails to return or destroy stamps as directed by the Minister under paragraph 25.5(b), or who fails to re-work or destroy a tobacco product in the manner authorized by the Minister under section 41, is liable to a penalty of not more than $25,000.

  7.  The Act is amended by adding the following after section 238:

Penalty in respect of unaccounted excise stamps

  238.1  (1)  Every person who is issued excise stamps is liable to a penalty if the person cannot account for the stamps as being in their possession unless

    (a)  the person can demonstrate that the stamps were affixed to tobacco products or their containers in the prescribed manner and that duty, other than special duty, has been paid on the products; or

    (b)  in the case of stamps that were cancelled, the person can demonstrate that the stamps were returned or destroyed as directed by the Minister.

Amount of the penalty

  (2)  The amount of the penalty for each excise stamp that cannot be accounted for is equal to the duty that would be imposed on a tobacco product for which the stamp was issued under subsection 25.1(1).

  8.  Section 264 of the Act is replaced by the following:

Certain things not to be returned

  264.  Despite this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco, excise stamp or tobacco 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.

  9.  Section 266 of the Act is amended by adding the following after subsection (1):

Excise stamps not to be sold

  (1.1)  Despite subsection (1), the Minister shall not sell excise stamps that have been seized under section 260.

   10.  (1)  Paragraph 304(1)(c) of the Act is replaced by the following:

    (c)  respecting the types of security that are acceptable for the purposes of paragraph 23(3)(b) or subsection 25.1(3), and the manner by which the amount of the security is to be determined but that amount must not be less than $5,000;

  (2)  Subsection 304(1) of the Act is amended by adding the following after paragraph (f):

    (f.1)  respecting the issuance of excise stamps;

Customs Act

  11.  Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order:

"excise stamp"

« timbre d'accise »

"excise stamp" means a stamp that is issued by the Minister under subsection 25.1(1) of the Excise Act, 2001 and that has not been cancelled under section 25.5 of that Act.

  12.  Section 97.25 of the Act is amended by adding the following after subsection (3):

Excise stamps not to be sold

  (3.1)  Despite subsection (3), the Minister shall not direct that detained excise stamps be sold.

  13.  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, raw leaf tobacco, excise stamps or tobacco 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.

  14.  Section 119.1 of the Act is amended by adding the following after subsection (1):

Excise stamps not to be sold

  (1.01)  Despite subsection (1), the Minister shall not authorize an officer to sell excise stamps that have been seized under this Act.

  15.  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 or a tobacco 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

  16.  Section 142.1 of the Act is amended by adding the following after subsection (1):

Dealing with abandoned or forfeited excise stamps

  (1.1)  If an excise stamp is abandoned or finally forfeited under this Act, the Minister may destroy or otherwise deal with it.

Coming into force

  17.  Clauses 1 to 16 come into force on a day or days to be fixed by order of the Governor in Council.