Excise Act

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Sections1,296

• 1Short title

  This Act may be cited as the Excise Act.

• 1.1Non-application of Act
• 1.1(1)

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

• 1.1(1)(a)

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

• 1.1(1)(b)

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

• 1.1(2)Meaning of beer and malt liquor

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

• 1.2Non-application — transformation of beer concentrate
• 1.2(1)

  This Act does not apply to the transformation, by dilution or hydration, of beer concentrate into beer for consumption as a beverage on the premises where it is transformed if the transformation is done in a manner approved by the Minister.

• 1.2(2)Meaning of beer

  For the purposes of subsection (1), beer means a product that would be beer or malt liquor, as defined in section 4, if that definition were read without reference to its paragraph (b).

• 2Definitions

  In this Act,

• 2[p10]

  bonding warehouse means any warehouse in which goods subject to excise may be stored or deposited without payment of the duty imposed by this Act; (entrepôt)

• 2[p11]

  collector means every officer of excise who is appointed to collect the duties imposed by this Act in any defined district or excise division; (receveur)

• 2[p12]

  Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act; (commissaire)

• 2[p13]Repealed

  Department[Repealed, 1999, c. 17, s. 139]

• 2[p14]

  departmental analyst means a person employed as a chemical analyst in any department or agency of the government of Canada or of any province; (analyste de ministère)

• 2[p15]Repealed

  departmental regulations[Repealed, 1999, c. 17, s. 139]

• 2[p16]Repealed

  Deputy Minister[Repealed, 1999, c. 17, s. 139]

• 2[p17]

  excise division means the district or territory under the survey of the collector; (division d’accise)

• 2[p18]

  holiday, in relation to any area in Canada, means a day that is a holiday for employees employed in that area

• 2[p18](a)

  by the Canada Revenue Agency and who are entitled to additional compensation for work performed on that day, or

• 2[p18](b)

  in the Public Service and to whom regulations made pursuant to the Financial Administration Act respecting terms and conditions of employment apply; (jour férié)

• 2[p21]

  inspector means any superior officer or any inspector of excise who is appointed or authorized to perform the duties of inspector in any defined district or excise division; (inspecteur)

• 2[p22]

  Minister means the Minister of National Revenue; (ministre)

• 2[p23]

  ministerial regulations means all regulations made by the Minister under this Act; (règlements ministériels)

• 2[p24]

  officer means every officer of excise who is employed or appointed to the survey of manufactures, operations or premises subject to excise, and every person employed for the purpose of the administration or enforcement of this Act, including any member of the Royal Canadian Mounted Police; (préposé)

• 2[p25]

  person means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind; (personne)

• 2[p26]

  possession means not only having in one’s own personal possession, but also knowingly

• 2[p26](a)

  having in the actual possession or custody of any other person, and

• 2[p26](b)

  having in any place, whether belonging to or occupied by one’s self or not, for the use or benefit of one’s self or of any other person; (possession)

• 2[p29]

  provincial analyst means any analyst appointed by the government of any province and having authority to make any analysis for any public purpose; (analyste provincial)

• 2[p30]

  regulations, unless the context indicates that the reference is to ministerial regulations, means regulations made by the Governor in Council under this Act; (règlements)

• 2[p31]

  stamp means any distinctive mark, label or seal impressed on, printed on, marked on, indented into or affixed to any goods subject to excise, or any distinctive mark, label or seal impressed on, printed on, marked on, indented into or affixed to any package in which any of those goods are contained; (estampille)

• 2[p32]

  subject to excise means subject to the provisions of this Act, of any other Act respecting duties of excise or of any proclamation, order in council or ministerial regulation published or made under those provisions; (sujet à l’accise, soumis à l’accise ou assujetti à l’accise)

• 2[p33]

  subsequent offence means an offence committed within five years after the date of a previous conviction; (récidive)

• 2[p34]

  superior officer means the Commissioner and any officer or member of a class of officers designated by the Minister; (fonctionnaire supérieur)

• 2[p35]

  vehicle means any motor vehicle, aircraft or other conveyance designed to be driven or drawn by any means including muscular power, and any part thereof, and includes any equipment necessary for the proper operation of the vehicle and any appurtenances of the vehicle; (véhicule)

• 2[p36]

  vessel, where used to indicate a craft for navigation of the water, includes any ship, vessel or boat of any kind whatever, whether propelled by steam or otherwise and whether used as a sea-going vessel or on inland waters only, and also includes any vehicle; (vaisseau)

• 2[p37]

  volume of absolute ethyl alcohol means such volume measured at twenty degrees Celsius (20°C). (volume d’alcool éthylique absolu)

• 2.1Possession

  For the purposes of subsections 225(1) and (3) and 235(3), section 239.1 and subsections 240(1) and (2), where one of two or more persons, with the knowledge and consent of the rest, has anything in the person’s possession, it shall be deemed to be in the custody and possession of each and all of them.

• 2.2Related persons

  For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

• 2.2(a)

  a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

• 2.2(b)

  a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

• 2.3Associated persons
• 2.3(1)

  For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

• 2.3(2)Corporations controlled by same person or group

  For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

• 2.3(3)Partnership or trust

  For the purposes of this Act, a person is associated with

• 2.3(3)(a)

  a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

• 2.3(3)(b)

  a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

• 2.3(4)Association with third person

  For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

• 2.4Exception

  If a corporation that is a licensed brewer would otherwise be related to another corporation that is also a licensed brewer by reason that the corporations are controlled by individuals connected by blood relationship, marriage or common-law partnership or adoption, the corporations are deemed not to be related for the purposes of section 170.1 if it is established that they deal with each other at arm’s length.

• 3Definitions
• 3(1)

  In this Act,

• 3(1)[p52]

  alcohol, ethyl alcohol and spirits mean any material or substance, whether in liquid or any other form, containing any proportion by mass or by volume of absolute ethyl alcohol (C2H5OH); (alcool, alcool éthylique ou eau-de-vie)

• 3(1)[p53]

  beer, wash or wort, as applied to distilleries, means all liquor made in whole or in part from grain, malt or other saccharine matter, whether or not the liquor is fermented or unfermented; (bière, moût fermenté ou moût)

• 3(1)[p54]

  Canadian brandy means spirits distilled exclusively from the juices of native fruits, without the addition of sugar or other saccharine matter; (brandy canadien)

• 3(1)[p55]

  chemical still means any distilling apparatus that is kept and used by any person for the sole purpose of distilling water or reclaiming alcohol previously used in or for the preparation or manufacture of chemical, medicinal or pharmaceutical preparations, or that is used for scientific or industrial purposes, and not used for the manufacture or distillation of spirits, of which use in every case the Minister shall be the sole judge; (alambic de chimiste)

• 3(1)[p56]

  closed spirit-receiver means the vessel or vessels into which the spirit is conveyed for measurement; (récipient d’eau-de-vie fermé)

• 3(1)[p57]

  distiller means any person who conducts, works, occupies or carries on any distillery, who rectifies any spirits by any process whatever, either by himself or his agent, or who has in his possession, complete or partially completed, or who imports, makes or manufactures, in whole or in part, any still, worm, rectifying or other apparatus suitable for the manufacture of spirits, and everyone who makes or keeps beer or wash prepared, in preparation or fit for distilling, or low wines or faints, or who has in his possession or use a still or rectifying apparatus, shall be deemed to be a distiller; (distillateur)

• 3(1)[p58]

  distillery means any place or premises where and every office, workshop, warehouse, granary, fermenting-room, mash-house, still-room, rectifying-house, vault, cellar, shed, yard or other place owned or occupied by or on behalf of, or for the use of, any distiller, or in which any part of his business as such is transacted, where any grain, matter, material or apparatus suitable for or adapted to the production of spirits, or that is or is to be used in the production or rectification of spirits, is kept or stored, where any of the products of the distillery are kept or stored or where any process of manufacture is carried on, shall be held to be included in and to form part of the distillery to which it is attached or appurtenant; (distillerie)

• 3(1)[p58](a)

  any process of fermentation for the production of wash is carried on,

• 3(1)[p58](b)

  any wash is kept or produced for the purpose of distillation,

• 3(1)[p58](c)

  any mash-tub, fermenting-tun, worm or still for the distillation of spirits is set up or used,

• 3(1)[p58](d)

  any process of distillation whatever of spirits is carried on,

• 3(1)[p58](e)

  any process of rectification of spirits, either by re-distillation or filtration, or other process is carried on,

• 3(1)[p58](f)

  any spirits are manufactured or produced from any substance whatever, by any process whatever, or

• 3(1)[p58](g)

  any still, rectifier or other apparatus, suitable for the manufacture of spirits, is in whole or in part manufactured, made or kept,

• 3(1)[p66]

  rectifier means any pipe, vessel or still into which the spirit is conveyed for the purpose of rectification by re-distillation, filtration or any other process; (rectificateur)

• 3(1)[p67]

  rectifying spirits means the process of refining spirits by re-distillation, filtration or any other process; (rectification d’eau-de-vie)

• 3(1)[p68]

  still means any distilling apparatus whatever adapted or adaptable to the distillation of spirits; (alambic)

• 3(1)[p69]

  worm means any pipe, condenser or other equipment used or intended to be used for the condensation of spirit vapour. (serpentin)

• 3(2)Working of a distillery

  Any use made of any still, worm, mash-tub or fermenting-tun, rectifying or other apparatus suitable for the manufacture of wash, beer or spirits, for the distillation or rectification of any spirits or for fermenting any beer or wash, or the making or commencing to make, or the importation of, any such still, worm, mash-tub, fermenting-tun, rectifying or other apparatus, shall be deemed to be a working of a distillery and acting as a distiller within the meaning of this Act.

• 4Definitions

  In this Act,

• 4[p72]

  beer concentrate means any product

• 4[p72](a)

  that has an alcoholic strength in excess of 11.9% absolute ethyl alcohol by volume,

• 4[p72](b)

  that is either

• 4[p72](b)(i)

  made by dehydrating a fermented liquor (other than wine, as defined in section 2 of the Excise Act, 2001) that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, or

• 4[p72](b)(ii)

  intended, before being offered for consumption as a beverage, to be transformed by dilution or hydration into a fermented liquor (other than wine, as defined in section 2 of the Excise Act, 2001) that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, if the production of the product

• 4[p72](b)(ii)(A)

  involves in whole or in part brewing malt, grain or any saccharine matter, and

• 4[p72](b)(ii)(B)

  does not involve any process of distillation,

• 4[p72](c)

  that is not intended or marketed for consumption as a beverage without further transformation on the premises where it is to be consumed as a beverage, and

• 4[p72](d)

  for which the manner of the further transformation is approved by the Minister; (concentré de bière)

• 4[p81]

  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

• 4[p81](a)

  a fermented liquor that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, or

• 4[p81](b)

  beer concentrate; (bière ou liqueur de malt)

• 4[p84]

  brewer means any person who conducts, works, occupies or carries on any brewery, either personally or by an agent; (brasseur)

• 4[p85]

  brewery means any place or premises where any beer is manufactured, and all offices, granaries, mash-rooms, cooling-rooms, vaults, yards, cellars and store-rooms connected therewith or in which any material to be used in the manufacture of beer is kept or stored, where any process of manufacture is carried on, where any apparatus connected with that manufacture is kept or used or where any of the products of brewing or fermentation are kept or stored, shall be held to be included in and to form part of the brewery to which they are attached or appurtenant; (brasserie)

• 4[p86]

  malt means any substance prepared by steeping grain or leguminous seeds in water, allowing the grain or seeds to germinate, and checking the germination by drying. (malt)

• 5Definitions

  In this Act,

• 5[p88]

  bonded manufactory means any place or premises licensed to use spirits or other goods subject to excise in the manufacture of articles under formula approved by the Minister, and every place or premises where any of those articles are warehoused, stored or kept shall be held to form a part of the bonded manufactory to which it is attached or appurtenant; (fabrique-entrepôt ou manufacture-entrepôt)

• 5[p89]

  bonded manufacturer means a person who carries on under bond and subject to ministerial regulations the manufacture of articles in the production of which goods subject to excise are used in combination with other materials. (fabricant entrepositaire ou manufacturier entrepositaire)

• 6Definitions

  In this Act,

• 6[p91]

  accredited representative means a person who is entitled to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to the Foreign Missions and International Organizations Act or Article 49 of the Convention set out in Schedule II to that Act; (représentant accrédité)

• 6[p92]

  Canada twist, otherwise called tabac blanc en torquettes, means the unstemmed, unflavoured and unpressed leaf of tobacco grown in Canada, twisted and made into coils by a manufacturer of tobacco duly licensed under this Act; (tabac canadien en torquette ou tabac blanc en torquette)

• 6[p93]

  casing and case refer to the operation of adding to raw leaf tobacco any flavouring materials, but moistening by water alone is not casing; (aromatisation)

• 6[p94]

  cigar means every description of cigar, cigarillo and cheroot and any roll or tubular construction intended for smoking that consists of a filler composed of pieces of natural or reconstituted leaf tobacco, a binder of natural or reconstituted leaf tobacco in which the filler is wrapped and a wrapper of natural or reconstituted leaf tobacco; (cigare)

• 6[p95]

  cigar manufactory means any place or premises where raw leaf tobacco is worked up into a cigar, and every workshop, office, store-room, shed, yard or other place where any of the raw material is or is to be stored, where any process connected with the manufacture or preparation of cigars is or is intended to be carried on or where any of the products of the manufacture are or are intended to be stored shall be held to be included in and to form part of the cigar manufactory to which they are attached or appurtenant; (fabrique de cigares ou manufacture de cigares)

• 6[p96]

  cigar manufacturer means any person who, either personally or by an agent, carries on the manufacture of cigars, and the casing, packing, cutting, pressing, grinding, rolling, drying, crushing or stemming of any raw leaf tobacco, or otherwise preparing raw leaf tobacco for manufacture into cigars, is a working of a cigar manufactory and an acting as a cigar manufacturer within the meaning of this Act; (fabricant de cigares ou manufacturier de cigares)

• 6[p97]

  cigar stamp means any stamp required by this Act and the ministerial regulations to be affixed to a cigar, or a package, carton, box, crate or other container containing cigars, entered for consumption or imported into Canada, to indicate

• 6[p97](a)

  in the case of cigars manufactured in Canada, that the duties of excise have been paid on the cigars, and

• 6[p97](b)

  in the case of cigars imported into Canada, that the additional customs duty has been paid under the Customs Act and the Customs Tariff on the cigars; (estampille de cigares)

• 6[p100]

  cigarette means every description of cigarette and any roll or tubular construction intended for smoking, other than a cigar or a tobacco stick, and where any cigarette exceeds one hundred and two millimetres (102 mm) in length, each seventy-six millimetres (76 mm) or fraction thereof shall be deemed to be a separate cigarette; (cigarettes)

• 6[p101]

  excise tax means the taxes levied under section 23 of the Excise Tax Act; (taxe d’accise)

• 6[p102]

  foreign duty free shop has the meaning assigned by subsection 2(1) of the Excise Tax Act; (boutique hors taxes à l’étranger)

• 6[p103]

  foreign ships’ stores has the meaning assigned by subsection 2(1) of the Excise Tax Act; (provisions de bord à l’étranger)

• 6[p104]

  manufactured tobacco means every article, other than cigars, made by a tobacco manufacturer from raw leaf tobacco by any process whatever, and includes cigarettes, tobacco sticks and snuff; (tabac fabriqué ou tabac manufacturé)

• 6[p105]

  raw leaf tobacco means unmanufactured tobacco or the leaves and stems of the tobacco plant; (tabac en feuilles)

• 6[p106]

  standard leaf tobacco, as applied to any kind of tobacco, means that which consists of ten per cent of water and ninety per cent of solid matter; (tabac en feuilles régulier)

• 6[p107]

  tobacco manufactory means any place or premises where raw leaf tobacco is worked up into manufactured tobacco, and every workshop, office, store-room, warehouse, shed, yard or other place where any of the raw material is or is to be stored, where any process connected with the manufacture or preparation of manufactured tobacco is or is intended to be carried on or where any of the products of the manufacture are or are intended to be stored shall be held to be included in and to form part of the tobacco manufactory to which they are attached or appurtenant; (fabrique de tabac ou manufacture de tabac)

• 6[p108]

  tobacco manufacturer means everyone who manufactures tobacco for himself, or who employs others to manufacture tobacco, other than cigars, whether the manufacture is by casing, packing, cutting, pressing, grinding, rolling, drying, crushing or stemming of any raw leaf tobacco, or otherwise preparing raw leaf or manufactured or partially manufactured tobacco, by the putting up for use or consumption of scraps, waste, clippings, stems or deposits of tobacco, resulting from any process of handling tobacco, or by the working or preparation of raw leaf tobacco, scraps, waste, clippings, stems or deposits of tobacco, by sifting, twisting, screening or any other process; (fabricant de tabac ou manufacturier de tabac)

• 6[p109]

  tobacco marking means any information required by this Act and the regulations to be printed on or affixed to

• 6[p109](a)

  packages, cartons, boxes, crates and other containers containing manufactured tobacco that is not required by this Act and the ministerial regulations to be put up in packages that are required to be stamped with a tobacco stamp,

• 6[p109](b)

  a cigar that is not required by this Act and the ministerial regulations to be stamped with a cigar stamp, or

• 6[p109](c)

  packages, cartons, boxes, crates and other containers containing cigars that are not required by this Act and the ministerial regulations to be put up in packages that are required to be stamped with a cigar stamp; (mention obligatoire)

• 6[p113]

  tobacco packer means any person who, subject to ministerial regulations, by himself or his agent, deals in, prepares, packs, stems, reconstitutes or converts Canadian raw leaf tobacco or employs others to do so; (paqueteur de tabac)

• 6[p114]

  tobacco stamp means any stamp required by this Act and the ministerial regulations to be impressed on, printed on, marked on, indented into or affixed to a cigarette, or a package, carton, box, crate or other container containing manufactured tobacco, entered for consumption or imported into Canada, or to be affixed to Canadian raw leaf tobacco entered for consumption, to indicate

• 6[p114](a)

  in the case of manufactured tobacco manufactured in Canada or Canadian raw leaf tobacco, that the duties of excise have been paid on the manufactured tobacco or the Canadian raw leaf tobacco, and

• 6[p114](b)

  in the case of manufactured tobacco imported into Canada, that the additional customs duty has been paid under the Customs Act and the Customs Tariff on the manufactured tobacco; (estampille de tabac)

• 6[p117]

  tobacco stick means any roll or tubular construction of tobacco intended for smoking, other than a cigar, that requires further preparation to be consumed and, where any tobacco stick exceeds ninety millimetres (90 mm) in length or eight hundred milligrams (800 mg), each sixty millimetres (60 mm) or six hundred and fifty milligrams (650 mg), as the case may be, or fraction thereof shall be deemed to be a separate tobacco stick. (bâtonnets de tabac)

• 7Rates binding and payable by Her Majesty
• 7(1)

  The rates and duties of excise imposed by this Act or any other law relating to excise as well as the rates and duties of excise imposed by any law relating to excise or inland revenue enacted and in force since July 1, 1867 are binding on and payable by Her Majesty in respect of any goods manufactured or imported by or for Her Majesty, whether in right of Canada or a province, and whether or not the goods so manufactured or imported belonged at the time of manufacture or importation to Her Majesty, and any and all of those Acts shall be construed and interpreted as if the rates and duties of excise were and are by express words charged on and made payable by Her Majesty.

• 7(2)Interpretation

  Nothing contained in subsection (1) is intended to impose or to declare the imposition of any tax on, or to make or declare liable to taxation, any property belonging to Her Majesty in right of Canada or a province.

• 7(3)Duties payable after seizure

  Without restricting the generality of subsections (1) and (2), when any goods subject to excise have been seized or forfeited by the government of any province or any public authority established by or under the authority of that government, the duties of excise imposed by this Act are payable and may be recovered in the same manner as if those goods were found in the possession of any private person.

• 8Minister may refuse or suspend licence
• 8(1)

  The Minister may, for any reason that he deems sufficient in the public interest, refuse to issue any licence or to grant any privilege authorized by this Act, and may suspend, cancel or revoke a licence granted or any privilege given by this Act.

• 8(2)Commissioner may act

  The Minister may authorize the Commissioner to exercise on the Minister’s behalf any of the powers conferred on the Minister by this Act.

• 9No licence in places unsurveyed or unsettled

  No licence shall be issued under this Act, nor shall any business subject to excise be carried on, in any unsurveyed or unsettled tract of country or in any district or place prohibited by order in council.

• 10Business may not be carried on without licence

  No person, unless licensed to do so, shall carry on any business or trade subject to excise or use any utensil, machinery or apparatus suitable for carrying on that business or trade or, not being licensed as a distiller or licensed to carry on the business of rectifying spirits, import, make or begin to make any still, rectifier or other apparatus suitable for the manufacture or rectification of spirits.

• 11List of apparatus to be furnished to collector

  Every person who imports, makes, has in his possession or keeps any still, worm, mash-tub, fermenting-tun, distilling, rectifying or brewing apparatus, tobacco press or mill for cutting or grinding tobacco shall, forthwith, after the apparatus or machinery comes into his possession and in each subsequent year on or before April 10, give to the collector of the division in which the apparatus or machinery is located a full and particular list, description and return thereof, the same in nature and form as is required by this Act in an application for a licence to use similar apparatus or machinery.

• 12Term of licence

  Each licence issued pursuant to this Act expires on March 31 next following the date of its issue, but, unless the licence is suspended, cancelled or revoked, it shall be deemed to be reissued from year to year on each successive April 1 on payment, on or before March 31 in each year, of the fee prescribed by the regulations for the issue of the licence.

• 13Application for licence

  Every person who requires a licence under this Act shall make application therefor in writing over the person’s signature to the collector, or any other officer designated by the Minister, within whose district or excise division the business for which the licence is required is to be carried on, and every application shall be made in the form prescribed by the Minister.

• 14What application must show
• 14(1)

  Every application for a licence under this Act shall state the exact locality in the city, town, village, township or local municipality, as the case may be, where the premises are situated, in which the business for which the licence is required is to be carried on, and shall also contain or have annexed thereto a full and particular written description in triplicate, with such models, diagrams or drawings, also in triplicate, as may be required by ministerial regulations.

• 14(2)Where licence to apply

  No licence shall authorize a person to carry on any business subject to excise in any place other than the premises mentioned in the application for the licence, but on application being made, in the form prescribed by the Minister, by the holder of any licence under this Act, the licence so held may be transferred from any premises to any other premises situated within the same excise division, without payment of additional licence fee, if all the requirements of this Act have been complied with by the holder of the licence with reference to the premises to which it is proposed to transfer it and all obligations imposed by the licence have been fulfilled.

• 14(3)New bond

  Whenever any transfer of a licence is made pursuant to subsection (2), a new bond shall be taken as is required on the issue of a new licence.

• 15Name of surety

  Every application for a licence under this Act shall state the name of the guarantee company proposed by the applicant therefor as his surety, in accordance with the requirements of this Act, and it shall also state, in the case of a tobacco manufactory, the maximum quantity of manufactured tobacco, and, in the case of a cigar manufactory, the maximum number of cigars intended to be produced in each month.

• 16List and description of apparatus

  Every application for a licence for distilling or brewing shall contain, in addition to the information required by sections 14 and 15, a list and description in triplicate of all utensils, stills, worms, boilers, mash-tubs, fermenting-tuns, coolers, closed spirit-receivers or other vessels or machinery that are intended to be placed on the premises or that are on the premises at the time of application, specifying distinctly and clearly

• 16(a)

  the dimensions and capacity of every still, mash-tub, fermenting-tun, cooler, closed spirit-receiver and every other utensil, in centimetres and litres, the purpose to which each is to be applied and the locality or position in the premises in which it is, or is to be, placed or used; and

• 16(b)

  a description of every pipe, conduit, trough, hose, valve, pump, cock and of every means of connection or communication between the several vessels or utensils used in or about the distillery or brewery, with a description and drawing or model showing the exact position of every cock, valve, connection and joint.

• 17Premises to be surveyed by officer
• 17(1)

  No licence shall be granted for carrying on any business subject to excise until after a survey has been made by the collector, or an officer instructed for the purpose by him, of the buildings or places in which the business is to be carried on or until the collector or other officer has certified in writing that the application, descriptions, models, diagrams and drawings correctly represent the premises, and that all the provisions of this Act and of every order in council or ministerial regulation made in virtue thereof have been complied with respecting the place or premises.

• 17(2)No licence if premises unsatisfactory

  No licence shall be granted for carrying on any business subject to excise in a building or premises that, after careful survey, appear to the Minister to be so situated with reference to surrounding buildings or places of business, or to be so constructed or arranged, as to embarrass or endanger the full collection of the revenue.

• 17(3)Repealed

  [Repealed, R.S., 1985, c. 15 (1st Supp.), s. 47]

• 18Term of bond

  Every bond entered into under this Act remains in force so long as any duty on any articles or commodities subject to excise, or on any licence to which the bond relates, or any penalty, remains unpaid by the person to whom the licence was granted.

• 19New bond
• 19(1)

  Whenever any new licence is granted to any person, a new bond shall be entered into with reference to the new licence.

• 19(2)Idem

  A new bond shall be given, whenever, during the period for which any licence is in force to which the bond first given relates, the guarantee company is wound up, becomes insolvent or ceases to do business in Canada, and the licence is void from the time the person to whom it was granted is required by the collector or superior officer to enter into a new bond until the time when the new bond is given, during which time the person neglecting to enter into the new bond shall be held to be without a licence.

• 20Application for licence
• 20(1)

  Every application for a licence under this Act shall be forwarded by the collector to the district inspector and by the district inspector to the Minister with such information as is required by any ministerial regulation.

• 20(2)Licence issued

  As soon as an application referred to in subsection (1) is returned to the collector, endorsed with the approval of the district inspector and authorized by the Minister, and on the due execution of the bond with surety as herein required, the collector shall issue a licence to carry on the business and to use the utensils, machinery and apparatus specified in the application, and in the place and premises therein specified, and in such place or premises only, and shall immediately report the issue of the licence to the Minister.

• 21Forfeiture of licence
• 21(1)

  The Minister may declare forfeited any licence authorized by this Act in any case where a person who, being a manufacturer of any class of goods subject to a duty of excise, either directly or indirectly,

• 21(1)(a)

  makes a sale of any of those goods, or consigns them for sale on commission, to another person, subject to the condition that the purchaser or consignee shall not sell or deal in goods of a like kind produced by, or obtained or to be obtained from, any other manufacturer or dealer; or

• 21(1)(b)

  makes a sale of any of those goods, or consigns them for sale on commission, to another person, on such terms as would, in their application, give more profit to the purchaser or consignee if he should not sell or deal in goods of a like kind produced by, or obtained or to be obtained from, any other manufacturer or dealer.

• 21(2)Notice in Canada Gazette

  The collector shall, on the forfeiture of a licence under subsection (1), cause a notice of the forfeiture to be forthwith inserted in the Canada Gazette, and from and after the insertion thereof the licence is void.

• 21(3)Condition for granting new licence

  No new licence shall be granted to a person whose licence has been forfeited under subsection (1), and no licence shall be granted to any other person for carrying on any business in the premises occupied by the former licence holder until the Minister is satisfied that the dealings referred to in this section have ceased.

• 21(4)Decision of Minister final

  The decision of the Minister is final as to whether any sale or consignment of goods is, or is not, subject to any conditions or on any terms that are mentioned in this section.

• 22Proof of licence

  The burden of proof that any licence required by this Act has been issued lies on the person to whom the licence is alleged to have been issued.

• 23Posting up

  Every person licensed under this Act shall keep his licence posted up in a conspicuous place in his manufactory.

• 24Payment of licence fees

  All licence fees are due and payable at the time the licence is granted, and in no case shall a licence be issued until all fees are paid.

• 25Assistance to inspecting officer

  Every person licensed under this Act shall, at all times when required, supply any officer with all assistance, lights, ladders, tools, staging or other thing necessary for inspecting the premises, stock, tools or apparatus belonging to the licensed person, or for weighing, gauging or testing any article or commodity then on the premises for which the licence is granted, and shall open all doors, and open for examination all boxes, packages, casks, barrels and other vessels, when required to do so by any officer of excise.

• 26Notice of any alterations or additions to apparatus

  Where any person holding a licence under this Act intends to make any alteration or addition to the premises, utensils, machinery or apparatus described in this Act, to remove any portion of those utensils, machinery or apparatus or to make any use of any compartment or room for a purpose different from that mentioned in the written description accompanying his application for licence, notice in writing shall be served on the collector of the intention to make those alterations, additions, removals or changes at least one week before they are commenced, and every notice shall set out fully and correctly the particulars of the proposed alterations, additions, removals or changes, and on completion of the work, that person shall furnish the collector with supplementary plans and descriptions, which the collector shall forward to the district inspector.

• 27Minister may require new list, etc., of apparatus

  The Minister may, for sufficient cause, of which sufficiency he is the sole judge, at any time after having given ten days notice, require a new list and description, with such models, diagrams or drawings as are required by this Act in an application for a licence, to be made out and furnished by any person holding a licence under this Act.

• 28Inspection of weights and measures

  All beams, scales, weights and measures used in or about any premises subject to excise shall be inspected, tested and verified by an inspector of weights and measures as often as any inspector directs, except that scales used in a tobacco or cigar manufactory, when used exclusively for weighing tobacco during any intermediate process of manufacture and not used for weighing raw material brought into the manufactory or taken for use therein, or in ascertaining the manufactured products of the manufactory, may be used without inspection.

• 29Night work
• 29(1)

  Except under authority of the collector and in the presence of an officer of excise, between the hours of five o’clock in the afternoon and eight o’clock the following morning.

• 29(1)(a)

  no act, operation or process, for the supervision of which the presence of an officer is required by a ministerial regulation, shall be done or carried on in any premises licensed under this Act, and

• 29(1)(b)

  no goods subject to excise shall be removed from any premises licensed under this Act,

• 29(2)Extra time of officers to be paid for

  Whenever any business, act, operation or process, for the supervision of which the presence of an officer is required by any regulation then in force, is carried on or done in any premises licensed under this Act before eight o’clock in the forenoon, during the dinner hour or after five o’clock in the afternoon, or on a holiday at any hour, the person in whose premises the business, act, operation or process is carried on or done shall pay the collector for the attendance of the officer or officers during the extra time they are so employed, at such rate as is determined by ministerial regulations.

• 30Inscription over premises
• 30(1)

  There shall be conspicuously placed over the chief entrance to every place or premises subject to excise the name of the person by whom, or the name and style of the firm or corporation by which, the place or premises are occupied.

• 30(2)Marking of utensils

  Every mash-tub, fermenting-tun, closed spirit-receiver, cooler, tank, vat or other vessel that is used to do anything for which a licence is required by this Act, or that is used for containing any commodity subject to excise, shall have written, stamped or printed on it in white Roman characters, at least fifty millimetres (50 mm) in height, on a black ground, the serial number and the capacity thereof in litres.

• 30(3)Under direction of officer

  Every notice or written or printed designation or name of any person, place or thing required by this section shall be printed, painted, put up or affixed under and according to the direction of an officer and at the expense of the person on whose behalf it is done.

• 31Keeping of books

  Every person who carries on a business subject to excise shall

• 31(a)

  keep, within the licensed premises in which that business is carried on by him, stock books and other books in a form and manner prescribed by ministerial regulations and retain those books until the expiration of six years from the end of the calendar year in respect of which they are kept or until written permission for their prior disposal is given by the Minister; and

• 31(b)

  clearly record in the books referred to in paragraph (a), day by day and on the same day on which the circumstance, thing or act to be recorded is done or occurs, such particulars as are required by any ministerial regulation in that behalf.

• 32Yearly inventory of stock
• 32(1)

  Every person who is a distiller, tobacco manufacturer, cigar manufacturer, bonded manufacturer or brewer shall make and deliver to the collector of the division in which the manufactory or premises of that person is or are situated, an inventory in such form as is prescribed by the Minister of the quantity of the different kinds of raw material, articles and goods in process of manufacture, and manufactured products, and all other materials held or owned by that person at the close of business on the last day of the fiscal period of that person, as determined for the purposes of the Income Tax Act, in each year or at any intermediate time when required by the Minister.

• 32(1.1)Monthly returns

  Every person who has a licence for a bonding warehouse granted under paragraph 50(1)(c) shall make a monthly return to the collector of the division in which the warehouse is situated of the quantity of manufactured tobacco and cigars delivered to accredited representatives, listing the quantity for each country represented by the accredited representatives.

• 32(1.2)Yearly inventory of stock in bonding warehouse

  Every person who has a licence for a bonding warehouse granted under paragraph 50(1)(c) shall make and deliver to the collector of the division in which the warehouse is situated an inventory in such form as is prescribed by the Minister of the goods stored in the warehouse at the close of business on the last day of the fiscal period of that person, as determined for the purposes of the Income Tax Act, in each year or at any intermediate time when required by the Minister.

• 32(2)Stock-taking

  The stock-taking necessary to make up the inventories referred to in subsections (1) and (1.2) shall be done in the manner specified by ministerial regulations.

• 33Inspection of books and papers
• 33(1)

  Every person who is licensed to carry on any business subject to excise shall, as often as is required by the collector or any inspector and at any time within ordinary business hours, or when any operation is being carried on within the licensed premises, produce for the inspection of any such officer

• 33(1)(a)

  all books, papers and accounts, kept in accordance with the requirements of this Act, in which books, papers or accounts the officer may enter any memorandum, statement or account of quantities, in which case he shall attest the same by his initials; and

• 33(1)(b)

  all books, accounts, statements and returns whatever, and all partnership accounts used by any such person or by any co-partners in carrying on the licensed business, whether those books, accounts, statements or returns are considered private or otherwise and whether they are or are not on the licensed premises, and every officer shall be permitted to take extracts therefrom or copies thereof.

• 33(2)Officer seizing may remove books, etc.

  In case of seizure of any article or thing in any premises subject to excise for contravention of this Act, the seizing officer or any superior officer may take possession of and remove all or any books, papers or accounts kept under the requirements of this Act, and may retain them until the seizure is declared valid by competent authority or the article or thing seized or the proceeds thereof is, by competent authority, directed to be restored.

• 34No erasure allowed in books

  No erasure shall be made in any books required to be kept in accordance with this Act by any person licensed under it, nor shall any leaf or leaves, or part of a leaf or leaves, be removed therefrom, and any obliterating of words or figures by any means whatever, other than by ruling through them with ink in such a manner as not to render the words or figures so ruled out incapable of being read, shall be deemed to be an erasure.

• 35Quantities to be stated
• 35(1)

  Except as otherwise provided in this Act, every quantity of grain recorded or stated in the stock books mentioned herein, and in all returns, accounts, inventories and statements required by this Act to be kept or made, and the quantity of every other article or commodity, except fluids, used in or about any premises subject to excise, or entering into the manufacture of any article or commodity subject to excise, shall be stated in grams or kilograms.

• 35(2)Fluids

  All quantities of fluids, except when otherwise provided in this Act, shall be stated in the stock books, returns, accounts, inventories and statements referred to in subsection (1), in millilitres or litres, and the quantity of any fluid, in millilitres or litres, shall, for all the purposes of this Act, be determined by weighing or gauging, in such manner as is prescribed by any ministerial regulation in that behalf.

• 36Monthly returns

  All returns, unless otherwise provided in this Act, shall be made distinct and separate for each month, and shall relate to the month last preceding the day of making the returns.

• 36.1Determination of periods for semi-annual returns
• 36.1(1)

  The following are six-month periods of a licensed brewer:

• 36.1(1)(a)

  the period beginning on January 1 and ending on June 30, or the portion of that period, if any, that ends before the month on which a revocation under subsection (3) or (4) becomes effective; and

• 36.1(1)(b)

  the period beginning on July 1 and ending on December 31, or the portion of that period, if any, that ends before the month on which a revocation under subsection (3) or (4) becomes effective.

• 36.1(2)Semi-annual returns

  On application by a licensed brewer in the form and manner specified by the Minister, the Minister may, in writing, authorize the brewer to make a return for each six-month period in a particular year if

• 36.1(2)(a)

  the brewer has been licensed for a period exceeding one year;

• 36.1(2)(b)

  the total of all duty imposed, levied and collected on beer and malt liquor brewed by the brewer and any person associated with the brewer in the year ending immediately before the particular year did not exceed $120,000;

• 36.1(2)(c)

  the total of all duty imposed, levied and collected on beer and malt liquor brewed by the brewer and any person associated with the brewer in the particular year does not exceed $120,000; and

• 36.1(2)(d)

  the brewer is in compliance with the Act.

• 36.1(3)Deemed revocation

  An authorization under subsection (2) is deemed to be revoked if the total of all duties imposed, levied and collected on beer and malt liquor by the brewer and any person associated with the brewer exceeds $120,000 in a year, which revocation is effective as of the first day after the end of the six-month period in which the excess occurs.