Excise Act — E-14 58.1
Definitions 58.1 (1) The definitions in this subsection apply in this section. foreign brand tobacco means tobacco in respect of which the excise tax imposed under section 23.13 of the Excise Tax Act is not payable because of section 23.3 of that Act. ( tabac de marque étrangère ) manufactured tobacco does not include partially manufactured tobacco or foreign brand tobacco. ( tabac fabriqué ) partially manufactured tobacco means a tobacco product made by a tobacco manufacturer that is cut filler or cut rag or that is manufactured less fully than cut filler or cut rag. ( tabac partiellement fabriqué ) Categories of manufactured tobacco (2) For the purposes of subsection (4), each of the following constitutes a category of manufactured tobacco: (a) cigarettes; (b) tobacco sticks; and (c) manufactured tobacco other than cigarettes and tobacco sticks. Removal of manufactured tobacco in bond (3) Manufactured tobacco may, without payment of duty, be removed from a bonding warehouse only if (a) it is (i) removed by its manufacturer and exported in bond in accordance with subsection (4) and not for delivery to a foreign duty free shop or as foreign ships’ stores, (ii) removed by its manufacturer and entered into another bonding warehouse in bond, or (iii) released to accredited representatives for their personal or official use; and (b) the removal and exportation, entry or release, as the case may be, are in accordance with the regulations and the ministerial regulations. Maximum quantity permitted to be exported in bond (4) A tobacco manufacturer shall not, at a particular time in a calendar year, remove a particular quantity of a category of manufactured tobacco from the manufacturer’s bonding warehouse for export in bond if the total quantity of that category of manufactured tobacco removed in the year up to that time by the manufacturer from a bonding warehouse for export in bond, plus the particular quantity, exceeds 1.5% of the total quantity of manufactured tobacco of that category manufactured by the manufacturer in the preceding calendar year. Quantities to be excluded for the purpose of subsection (4) (5) The total quantities referred to in subsection (4) shall not include any quantity of manufactured tobacco that was exported by the manufacturer for delivery to a foreign duty free shop or as foreign ships’ stores. Removal of cigars in bond (6) Cigars may, without payment of duty, be removed from a bonding warehouse only if (a) they are (i) removed by their manufacturer and (A) exported in bond, (B) entered into another bonding warehouse in bond, (C) entered into a bonded warehouse, licensed as such under the Customs Tariff , if the person entering the cigars into the bonded warehouse certifies to the manufacturer that they are for delivery as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act , (D) transferred to a duty free shop, licensed as such under the Customs Act , if the operator of the duty free shop certifies to the manufacturer that the cigars are for sale to persons who are about to leave Canada, or (E) delivered as ships’ stores in accordance with the regulations made under the Customs Tariff and the Excise Tax Act , or (ii) released to accredited representatives for their personal or official use; and (b) the removal and export, entry, transfer, sale, delivery or release, as the case may be, are in accordance with the regulations and the ministerial regulations. Removal of partially manufactured tobacco or foreign brand tobacco in bond (7) Partially manufactured tobacco or foreign brand tobacco may, without payment of duty, be removed by its manufacturer from a bonding warehouse only if (a) it is entered into another bonding warehouse in bond or exported in bond and not for delivery to a foreign duty free shop or as foreign ships’ stores; and (b) the removal and entry or export, as the case may be, are in accordance with the regulations and the ministerial reg