Excise Act — E-14 240
Unlawful sale or possession of manufactured tobacco or cigars 240 (1) Subject to subsections (2) and (3), every person who sells or offers for sale or has in the person’s possession any manufactured tobacco or cigars, whether manufactured in or imported into Canada, not put up in packages and stamped with tobacco stamps or cigar stamps in accordance with this Act and the ministerial regulations, (a) is guilty of an indictable offence and liable to (i) a fine of not less than the amount determined under subsection (1.1) and not more than the amount determined under subsection (1.2), or (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding 5 years; or (b) is guilty of an offence punishable on summary conviction and liable to (i) a fine of not less than the amount determined under subsection (1.1) and not more than the lesser of $500,000 and the amount determined under subsection (1.2), or (ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years. Minimum amount (1.1) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of (a) the total of (i) $0.16 multiplied by the number of cigarettes, if any, to which the offence relates, (ii) $0.11 multiplied by the number of tobacco sticks, if any, to which the offence relates, (iii) $0.11 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and (iv) $0.16 multiplied by the number of cigars, if any, to which the offence relates, 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 (1.2) The amount determined under this subsection for an offence under subsection (1) in relation to manufactured tobacco or cigars is the greater of (a) the total of (i) $0.24 multiplied by the number of cigarettes, if any, to which the offence relates, (ii) $0.16 multiplied by the number of tobacco sticks, if any, to which the offence relates, (iii) $0.16 multiplied by the number of grams of manufactured tobacco, if any, other than cigarettes or tobacco sticks, to which the offence relates, and (iv) $0.50 multiplied by the number of cigars, if any, to which the offence relates, and (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction. Where possession not an offence (2) Subsection (1) does not apply to the possession of manufactured tobacco or cigars (a) by a licensed tobacco manufacturer or licensed cigar manufacturer, in the manufactory of that manufacturer; (b) by a person who has a licence for a bonding warehouse granted under paragraph 50(1)(c), in that bonding warehouse; (c) while the manufactured tobacco or cigars are in transit in accordance with ministerial regulations after having been removed in bond under ministerial regulations; (d) in the case of cigars or imported manufactured tobacco, by a person licensed under the Customs Tariff to operate a bonded warehouse or under the Customs Act to operate a sufferance warehouse or duty free shop, in that warehouse or duty free shop; (e) by a person who is an accredited representative for the personal or official use of that person; (f) in the case of cigars or imported manufactured tobacco, as ships’ stores by a person if the acquisition and possession of the cigars or manufactured tobacco by that person are in accordance with the regulations made under the Customs Act , the Customs Tariff and the Excise Tax Act ; or (g) in such quantities as may be prescribed by ministerial regulations, where (i) the manufactured tobacco or cigars were imported by an individual for consumption by the individual or for consumption by another person at the individual’s expense, (ii) the manufactured tobacco or cigars were imported in quantities not in excess of such quantities as are