Excise Act, 2001 — E-14.1 237
Diversion of non-duty-paid alcohol 237 (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose. Diversion of duty-free tobacco (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose. Diversion of duty-free cigars (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose. Diversion of duty-free tobacco in special excise warehouse (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose. Diversion of imported tobacco (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose. Diversion of unstamped vaping products (5.1) Every vaping product licensee is liable to a penalty in respect of a vaping product manufactured in Canada that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.68(2) if the product is not delivered or exported, as the case may be, for that purpose. Diversion of imported vaping products (5.2) Every excise warehouse licensee is liable to a penalty in respect of an imported vaping product that is removed from the excise warehouse of the licensee for a purpose described in subsection 158.69(2) if the product is not delivered or exported, as the case may be, for that purpose. Amount of penalty for diversion of vaping products (5.3) The amount of a penalty for each vaping product that is removed from an excise warehouse for a purpose referred to in subsection (5.1) or (5.2) and that is not delivered or exported, as the case may be, for that purpose is equal to the amount determined by the formula (A + B) × 200% where A is the amount determined under Schedule 8 in respect of the vaping product, using the rates of duty applicable at the time the vaping product is removed from the excise warehouse; and B is (a) if at least one province is prescribed for the purposes of the definition specified vaping province in section 2 at the time the vaping product is removed from the excise warehouse, the amount determined for A, and (b) in any other case, 0. Exception (6) A licensee that would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol, tobacco product or vaping product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse. 2002, c. 22, s. 237; 2007, c. 18, s. 123 2022, c. 10, s. 72