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Vol. 137, No. 13 — June 18, 2003 Registration EXCISE ACT Regulations Repealing Certain Regulations Made under the Excise ActP.C. 2003-853 5 June, 2003 Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to section 127, subsections 138(1.1) (see footnote a) and (2) (see footnote b) , section 139, subsections 140(2) and 150(2), sections 151, 153, 154 and 193 and subsection 202(7) (see footnote c) of the Excise Act, hereby makes the annexed Regulations Repealing Certain Regulations Made under the Excise Act. REGULATIONS REPEALING CERTAIN REGULATIONS MADE UNDER THE EXCISE ACT REPEALS 1. The Regulations listed in the schedule are repealed. COMING INTO FORCE 2. These Regulations come into force on July 1, 2003. SCHEDULE
REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description The new Excise Act, 2001 received Royal Assent on June 13, 2002, thereby replacing the legislative provisions and definitions contained in the existing Excise Act regarding the production and distribution of alcohol and tobacco products. Certain regulations made under the authority of the current Excise Act, named in the schedule to these Regulations will become redundant and will be replaced by new legislative provisions or new regulations made under the Excise Act, 2001. The current Distillery Regulations prescribe a number of conditions that relate to the colouring of pipelines, blending, bottling, shipments and payment of excise duty. The Excise Act, 2001 places responsibility on the ownership of bulk spirits and not the premises in which they are manufactured and therefore the colouring of pipelines to identify the conveyance of spirits will become redundant. Section 131 of the Excise Act, 2001 will now cover the blending requirements with further amendments proposed that will clarify blending requirements for spirits and wine licensees. Section 14 of the Excise Act, 2001 allows a spirits licensee to package spirits and the Regulations Respecting the Possession of Non-duty-paid Packaged Alcohol and provisions of Part 4 (Alcohol) of the Excise Act, 2001 include provisions that deal with the removal, use and transportation of alcohol. Payment of excise duty and the keeping of records are included in the provisions of Part 4 (Alcohol) and Part 5 (General Provisions Concerning Duty and Other Amounts Payable) of the Excise Act, 2001. The current Excise Warehousing Regulations prescribe the requirements for the security, stowage, removal, and payment of excise duty for goods subject to excise stored in an excise bonding warehouse. Requirements relating to ownership, responsibility, and warehousing of alcohol and tobacco will be covered by the provisions of Part 3 (Tobacco), Part 4 (Alcohol) and Part 5 (General Provisions Concerning Duty and Other Amounts Payable) of the Excise Act, 2001 and by the Return of Packaged Alcohol to an Excise Warehouse Regulations, which set out the criteria under which packaged alcohol that was removed from an excise warehouse can be returned to that excise warehouse. The circumstances include returns for normal business practices such as incorrect shipments and overstocking. The current Manufacturers in Bond Regulations set out the responsibilities for Bonded Manufacturers using alcohol for the manufacture of certain products. Under the Excise Act, 2001, bonded manufacturers will become licensed users. The licensing of users of alcohol and the approval of product formulas will replace the current controls on the use of alcohol to make non-beverage products. The non-dutiable uses and removals of alcohol provisions contained in Part 4 of the Excise Act, 2001 will govern the use of alcohol for licensed users. Furthermore, bonded manufacturers are currently required to hold separate licences for different classes of products and maintain separate inventories of alcohol for each product category (e.g., cosmetics, pharmaceuticals). Licensed users under the Excise Act, 2001 will not require separate licences for different classes of products. The current Tobacco Regulations prescribe tobacco markings for tobacco products and set out the conditions for payment of excise duty. The stamping and marking requirements will be moved into the Stamping and Marking of Tobacco Products Regulations, which will retain the same stamping, marking, and information requirements that have been in place. However, other requirements pertaining to returns, refunds, and the types of records to be retained by tobacco manufacturers, will be addressed in Parts 4 and 5 of the Excise Act, 2001. Alternatives There is no reasonable alternative to repealing these Regulations, as there will no longer be any legislative authority for them. Benefits and Costs There are no increased costs as a result of the repeal of these Regulations. Onerous, intrusive requirements such as the colouring of pipelines, and separate inventories and licences for users of alcohol, which are no longer necessary to protect tax revenues, are being replaced by regulations that reflect more modern and streamlined administrative practices and flexibility in the use of alcohol to make non-beverage products. Consultation The Canada Customs and Revenue Agency and the Department of Finance carried out extensive consultations with the affected industries. Draft regulations were released in December 2001 and a Notice distributed in April 2002 to all current and potential licence and registration holders drawing their attention to the draft regulations and asking for submissions by June 30, 2002. Personal presentations and meetings were held with industry groups expressing interest and their comments and suggestions were actively sought and taken into consideration. There were no comments received with respect to these Regulations. Compliance and Enforcement There are no compliance or enforcement issues related to the repeal of these Regulations. Contact
Manager, Excise Act, 2001 - Implementation Excise Duties and Taxes Division Excise and GST/HST Rulings Directorate Policy and Legislation Branch Place de Ville, 20th Floor 320 Queen Street Ottawa, Ontario K1A 0L5 Telephone: (613) 954-5894 FAX: (613) 954-2226 S.C. 1997, c. 36, s. 206 R.S., c. 15 (1st Supp.), s. 51(2) S.C. 1993, c. 25, s. 40 |
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