Excise Taxes and Special Levies Notices

ET/SL 16

July 4, 1994

SUPPLIERS OF TOBACCO PRODUCTS TO RETAILERS IN NEW BRUNSWICK

Enclosed is an Application for Federal Excise Tax Credit on Tobacco Products Sold to Retailers in New Brunswick. You should use this form to claim final credits on sales of cigarettes, tobacco sticks and manufactured tobacco you have made to retailers in New Brunswick on or after February 11, 1994, and before June 1, 1994. Your application should be submitted to one of the manufacturers from which you purchased the products.

If you supply tobacco products to retailers outside of New Brunswick, you need to determine, in making your claim, what parts of your inventories were destined for sale in New Brunswick. You must do so by apportioning your inventories on the basis of the proportion of your total sales of each eligible type of tobacco product (i.e. cigarettes, tobacco sticks and manufactured tobacco) in a three-month period that were made to licensed retailers in New Brunswick. For your February 11 inventory, you must use the three-month period ending February 10, 1994. For your June 1 inventory, you may use either the three-month period ending February 10, 1994, or the three-month period ending April 14, 1994. That proportion expressed as a percentage and multiplied by the total inventories of that type of tobacco, will give you the inventory figures for purposes of the calculations on the enclosed form. Note that if you are claiming credits in respect of tobacco products for sale in more than one province (e.g. New Brunswick and Nova Scotia or Prince Edward Island), you must choose the same three-month period for the purpose of apportioning your June 1 inventory.

For purposes of this credit, inventory refers only to Atlantic-marked inventory of cigarettes and tobacco sticks and to fine cut tobacco not marked for sale in any particular province. Tobacco products marked for specific provinces, e.g. New Brunswick and Nova Scotia, do not qualify as inventory, nor do tobacco products which have been purchased on or after April 15, 1994, at the lower rate of excise tax, for sale to retailers on Indian reserves in Nova Scotia.

Before you send your claim to your manufacturer, it must be verified by the New Brunswick Department of Finance. You can have your claim verified by sending it to the following address:

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Please note that if you have already claimed credits from your manufacturer for sales to retailers in New Brunswick after February 10, 1994, the amounts so claimed must be deducted on lines G of the enclosed form.

Sales of tobacco products to retailers in New Brunswick made on or after June 1, 1994 do not qualify for this credit. As of that date, all purchases should be at the reduced rates applicable to the province for which the products are destined, subject to the ongoing rebate program for tobacco products destined for sale in Prince Edward Island.

Further information and forms are available from the following offices: