Tax and Revenue Administration Alberta Tobacco Tax Act Special Notice Vol. 3 No. 6

Note: Due to the Government of Alberta reorganization in November 2004, where applicable, the web versions of our documents have been updated to change references from "Minister of Revenue" or "Provincial Treasurer" to "Minister of Finance". References to "Revenue Canada" or "Canada Customs and Revenue Agency" have been changed to "Canada Revenue Agency" to reflect that name change as well. The paper version of this document is available from Tax and Revenue Administration and if applicable, will be updated as time permits.

ALBERTA TOBACCO TAX ACT SPECIAL NOTICE:
Alberta Tobacco Tax on Importation of Tobacco into Alberta

Bill 35 - Tobacco Tax Amendment Act, 2003, received Royal Assent on May 16, 2003. The bill legislates that, upon proclamation and subject to certain conditions, Alberta tobacco tax will be charged when "importing consumers" (persons resident in Alberta or their agents carrying on business in Alberta) import or send tobacco into Alberta, or acquire or receive delivery of tobacco in Alberta, for the persons' consumption, or on behalf of other persons at those persons' expense for their personal consumption. The Alberta tobacco tax on importation was proclaimed to be in force on September 1, 2003. 

Effective September 1, 2003, Alberta importing consumers who import tobacco into Alberta: 

• at a port of entry from a place outside Canada (i.e. the United States - Alberta border or at an international airport in Alberta),

• by mail or courier from a place outside Canada, or

• when entering Alberta from other provinces or territories

will be liable for the Alberta tobacco tax if the quantity imported is greater than the exemption limits, set based on the federal travellers' customs exemption limits. 

The exemption limits apply to consumers 18 years or older who have been absent from Alberta for not less than 48 hours as follows:

• 200 cigarettes,

• 200 tobacco sticks,

• 50 cigars or cigarillos, and

• 200 grams of manufactured tobacco. 

No exemption is available unless the cigarettes, tobacco sticks or manufactured tobacco are marked "CANADA DUTY PAID · DROIT ACQUITTE". There is also no exemption for tobacco imported into Alberta by mail or couriers.

Collection of the Tax

Alberta Ports of Entry, Mail or Courier from a place outside Canada:

Alberta Finance has entered into an agreement with the Canada Revenue Agency (CRA) to collect the Alberta tobacco tax on importation. The tobacco tax will be collected at Alberta ports of entry and on delivery of tobacco into Alberta by mail or courier from a place outside Canada. The agreement is effective September 1, 2003. A "Notice Concerning Collection of Alberta Tobacco Taxes" announcing the collection of the importation tax will be posted at all Alberta ports of entry customs offices prior to September 1, 2003.

Importing Consumers returning to Alberta from other Provinces or Territories:

Also effective September 1, 2003, Alberta importing consumers who bring tobacco into Alberta from another province or territory are required to report the importation and pay the Alberta tobacco tax to Alberta Finance, Tax and Revenue Administration (TRA) within 10 days. The return for reporting importation from other provinces and territories (AT208) will be available from the TRA website.  Alberta importing consumers bringing tobacco into Alberta from another province or territory are entitled to the exemption limits as though they had been out of Canada for 48 hours or more. No exemption is available unless the cigarettes, tobacco sticks or manufactured tobacco are stamped or marked federally or provincially.

Possession Limits on Tobacco Not Marked for Tax Paid Sale in Alberta

Effective September 1, 2003, Alberta's Tobacco Tax Act reduces a consumer's possession limit from 1000 grams to 200 cigarettes or 200 grams of manufactured tobacco that are not marked for tax paid sale in Alberta, unless the consumer is an eligible Indian consumer or an Alberta importing consumer who provides evidence that Alberta tax has been paid on the tobacco. Therefore, Alberta importing consumers must retain their receipt issued by the CRA showing they have paid Alberta tobacco tax on the tobacco imported, or a copy of the return reporting the tobacco tax paid when the tobacco is brought into Alberta from another province or territory, as proof that the tobacco in their possession has been tax paid in Alberta.

If you have any questions regarding this Special Notice, please phone (780) 427-3044. If calling long distance within Alberta, please phone 310-0000 then enter (780) 427-3044.