Excise Duties on Vaping Products Regulations Excise Act, 2001

• Date: 19 April 2024
• Published date: 08 May 2024
• Reference: DORS
• Section: Part II - Official regulations
• Gazette Issue: 10 - s/o

Canada Gazette, Part II, Volume 158, Number 10

Registration
SOR/2024-70 April 19, 2024

EXCISE ACT, 2001

P.C. 2024-395 April 19, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Excise Duties on Vaping Products Regulations under sections 304^{footnote a} and 304.3^{footnote b} of the Excise Act, 2001 ^{footnote c}.

Excise Duties on Vaping Products Regulations Definition

Definition of Act

1 For the purposes of these Regulations, Act means the Excise Act, 2001.

Additional Vaping Duty

Specified vaping provinces

2 For the purposes of the definition specified vaping province in section 2 of the Act, the following provinces are prescribed:

• (a) Ontario;
• (b) Quebec;
• (c) the Northwest Territories; and
• (d) Nunavut.

Section 158.58 of Act — prescribed circumstances

3 For the purposes of section 158.58 of the Act, a duty in respect of a specified vaping province is imposed under that section on vaping products manufactured in Canada, or imported, if

• (a) in the case of vaping products that are imported by an individual for their personal use, the individual is resident in the specified vaping province; and
• (b) in any other case, the vaping products are for consumption, use or sale to consumers in the specified vaping province.

Subsection 158.6(2) of Act — prescribed circumstances

4 For the purposes of subsection 158.6(2) of the Act, a duty in respect of a specified vaping province is imposed under that subsection on vaping products if

• (a) the vaping products are not stamped; and
• (b) the location of the vaping products at the particular time referred to in that subsection is in the specified vaping province.

Subsection 158.61(2) of Act — prescribed circumstances

5 For the purposes of subsection 158.61(2) of the Act, a duty in respect of a specified vaping province is imposed under that subsection on vaping products that cannot be accounted for if

• (a) the vaping products are not stamped;
• (b) the last known location of the vaping products before the particular time referred to in that subsection is in the specified vaping province; and
• (c) the particular person referred to in that subsection is not convicted of an offence under section 218.2 of the Act in respect of the vaping products.

Calculation of additional vaping duty

6 For the purposes of section 158.58 and subsections 158.6(2) and 158.61(2) of the Act, the amount of duty imposed under those provisions in respect of vaping products and a specified vaping province is equal to the amount determined in respect of the vaping products under Schedule 8 to the Act.

Transition

July 1 to September 30, 2024

7 For the purpose of facilitating the implementation of the coordinated vaping duty system (as defined in subsection 304.3(1) of the Act), subparagraph 158.42(1)(a)(ii), subsection 158.44(2) and paragraphs 158.45(1)(c) and 158.46(d) of the Act do not apply before October 2024 in respect of

• (a) vaping products that are manufactured in Canada and that are stamped before July 2024;
• (b) packaged vaping products that are imported by a vaping product licensee for stamping by the vaping product licensee and that are stamped before July 2024; and
• (c) any other imported vaping products that are imported or released (as defined in subsection 2(1) of the Customs Act) before July 2024.

Related Amendments Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped

8 The Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped ^{footnote 1} are amended by adding the following after section 1.3:

1.31 For the purposes of subsection 158.44(2) of the Excise Act, 2001, a person may possess vaping products in a particular specified vaping province that are not stamped to indicate that additional vaping duty in respect of the particular specified vaping province has been paid if

• (a) the vaping products are to be sold or offered for sale by the person, or by another person, to consumers in another province and, if the other province is a specified vaping province, the vaping products are stamped to indicate that additional vaping duty in respect of the other province has been paid; or
• (b) the person is an individual who possesses the vaping products for their personal use.

Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations

9 Paragraph 4.11(1)(a) of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations ^{footnote 2} is replaced by the following:

• (a) the total of
  • (i) $2.00 multiplied by the number of vaping excise stamps that either are in the applicant’s possession at the time of application or are to be issued in respect of the application and that are in respect of any specified vaping province, and
  • (ii) $1.00 multiplied by the number of vaping excise stamps that either are in the applicant’s possession at the time of application or are to be issued in respect of the application and that are not in respect of any specified vaping province, and

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