Budget Implementation Act, 2022, No. 1 (S.C. 2022, c. 10)

• (f) a vaping product licence, authorizing the person to manufacture vaping products.

Marginal note:Issuance of licence

• 19 (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person that is not a retailer of alcohol authorizing the person to possess in their excise warehouse manufactured tobacco, cigars or vaping products that are not stamped or non-duty-paid packaged alcohol.

• (b) shall, in the case of a spirits licence, a tobacco licence, a cannabis licence or a vaping product licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

PART 4.2Vaping Products

Manufacturing and Stamping

Marginal note:Manufacturing without licence prohibited

• 158.35 (1) No person shall, other than in accordance with a vaping product licence issued to the person, manufacture vaping products.

• Marginal note:Deemed manufacturer

  (2) A person that, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacturing of a vaping product is deemed to be manufacturing the vaping product and the other person is deemed not to be manufacturing the vaping product.

• Marginal note:Exception — manufacture for personal use

  (3) An individual who is not a vaping product licensee may manufacture vaping products for their personal use.

• Marginal note:Exception — regulations

  (4) Subsection (1) does not apply in respect of a prescribed person that manufactures prescribed vaping products in prescribed circumstances or for a prescribed purpose.

Marginal note:Issuance of vaping excise stamps

• 158.36 (1) On application in the prescribed form and manner, the Minister may issue, to a vaping product licensee or to a prescribed person that is importing vaping products, stamps the purpose of which is to indicate that vaping duty and, if applicable, additional vaping duty have been paid on a vaping product.

• Marginal note:Quantity of vaping excise stamps

  (2) The Minister may limit the quantity of vaping excise stamps that may be issued to a person under subsection (1).

• Marginal note:Security

  (3) No person shall be issued a vaping excise stamp unless the person has provided security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations.

• Marginal note:Supply of vaping excise stamps

  (4) The Minister may authorize a producer of vaping excise stamps to supply, on the direction of the Minister, vaping excise stamps to a person to which those stamps are issued under subsection (1).

• Marginal note:Design and construction

  (5) The design and construction of vaping excise stamps shall be subject to the approval of the Minister.

Marginal note:Counterfeit vaping excise stamps

158.37 No person shall produce, possess, sell or otherwise supply, or offer to supply, without lawful justification or excuse the proof of which lies on the person, anything that is intended to resemble or pass for a vaping excise stamp.

Marginal note:Unlawful possession of vaping excise stamps

• 158.38 (1) No person shall possess a vaping excise stamp that has not been affixed to the container of a vaping product in the manner prescribed for the purposes of the definition stamped in section 2 to indicate that duty has been paid on the vaping product.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a vaping excise stamp by

  • (a) the person that lawfully produced the vaping excise stamp;

  • (b) the person to which the vaping excise stamp is issued;

  • (c) a sufferance warehouse licensee that possesses the vaping excise stamp in their sufferance warehouse on behalf of the person described under paragraph (b); or

  • (d) a prescribed person.

Marginal note:Unlawful supply of vaping excise stamps

158.39 No person shall dispose of, sell or otherwise supply, or offer to supply, a vaping excise stamp otherwise than in accordance with this Act.

Marginal note:Cancellation of vaping excise stamps

158.4 The Minister may

• (a) cancel a vaping excise stamp that has been issued; and

• (b) direct that it be returned or destroyed in a manner specified by the Minister.

Marginal note:Unlawful packaging or stamping

158.41 No person shall package or stamp a vaping product unless

• (a) the person is a vaping product licensee;

• (b) the person is the importer or owner of the vaping product and the vaping product has been placed in a sufferance warehouse for the purpose of being stamped; or

• (c) the person is a prescribed person.

Marginal note:Unlawful removal

• 158.42 (1) Except as permitted under section 158.52 or if prescribed circumstances exist, no person shall remove a vaping product from the premises of a vaping product licensee unless it is packaged and

  • (a) if the vaping product is intended for the duty-paid market,

    • (i) it is stamped to indicate that vaping duty has been paid, and

    • (ii) if additional vaping duty in respect of a specified vaping province is imposed on the vaping product, it is stamped to indicate that the additional vaping duty has been paid; or

  • (b) if the vaping product is not intended for the duty-paid market, all vaping product markings that are required under this Act to be printed on, or affixed to, its container are so printed or affixed.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply to a vaping product licensee that removes from their premises a vaping product if it is

  • (a) being removed for

    • (i) delivery to another vaping product licensee,

    • (ii) export, or

    • (iii) delivery to a person for analysis or destruction in accordance with subparagraph 158.66(a)(iv); or

  • (b) a vaping product drug.

• Marginal note:Removal by Minister

  (3) Subsection (1) does not apply to the removal of a vaping product for analysis or destruction by the Minister.

Marginal note:Prohibition — vaping products for sale

158.43 No person shall purchase or receive for sale a vaping product

• (a) from a manufacturer that the person knows, or ought to know, is not a vaping product licensee;

• (b) that is required under this Act to be packaged and stamped unless it is packaged and stamped in accordance with this Act; or

• (c) that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Unlawful possession or sale of vaping products

• 158.44 (1) Except if prescribed circumstances exist, no person, other than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a vaping product unless

  • (a) it is packaged; and

  • (b) it is stamped to indicate that vaping duty has been paid.

• Marginal note:Unlawful possession or sale — specified vaping province

  (2) Except if prescribed circumstances exist, no person, other than a vaping product licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a vaping product in a specified vaping province unless it is stamped to indicate that additional vaping duty in respect of the specified vaping province has been paid.

• Marginal note:Exception — possession of vaping products

  (3) Subsections (1) and (2) do not apply to the possession of vaping products

  • (a) in the case of imported vaping products,

    • (i) by an excise warehouse licensee in their excise warehouse,

    • (ii) by a sufferance warehouse licensee in their sufferance warehouse, or

    • (iii) by a customs bonded warehouse licensee in their customs bonded warehouse;

  • (b) by a prescribed person that is transporting the vaping products under prescribed circumstances and conditions;

  • (c) by a person that possesses the vaping products for analysis or destruction in accordance with subparagraph 158.66(a)(iv);

  • (d) by an accredited representative for their personal or official use;

  • (e) by an individual who has imported the vaping products for their personal use in quantities not in excess of prescribed limits;

  • (f) by an individual who has manufactured the vaping products in accordance with subsection 158.35(3); or

  • (g) if the vaping products are vaping product drugs.

• Marginal note:Exception — sale or offer for sale

  (4) Subsections (1) and (2) do not apply to the disposal, sale, offering for sale or purchase of a vaping product if

  • (a) the vaping product is an imported vaping product, an excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product for export and the vaping product is exported by the licensee in accordance with this Act;

  • (b) the vaping product is an imported vaping product and an excise warehouse licensee or a customs bonded warehouse licensee sells or offers to sell the vaping product to an accredited representative for their personal or official use; or

  • (c) the vaping product is a vaping product drug.

Marginal note:Sale or distribution by licensee

• 158.45 (1) Except if prescribed circumstances exist, no vaping product licensee shall distribute a vaping product or sell or offer for sale a vaping product to a person unless

  • (a) it is packaged;

  • (b) it is stamped to indicate that vaping duty has been paid; and

  • (c) if additional vaping duty in respect of a specified vaping province is imposed on the vaping product, it is stamped to indicate that the additional vaping duty has been paid.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply to the distribution, sale or offering for sale of a vaping product by a vaping product licensee

  • (a) if the distribution, sale or offering for sale is to

    • (i) another vaping product licensee, or

    • (ii) an accredited representative for their personal or official use;

  • (b) if the vaping product is exported by the vaping product licensee in accordance with this Act; or

  • (c) if the vaping product is a vaping product drug.

Marginal note:Packaging and stamping of vaping products

158.46 A vaping product licensee that manufactures a vaping product shall not enter the vaping product into the duty-paid market unless

• (a) the vaping product has been packaged by the licensee;

• (b) the package has printed on it prescribed information;

• (c) the vaping product is stamped at the time of packaging to indicate that vaping duty has been paid; and

• (d) if the vaping product is to be entered in the duty-paid market of a specified vaping province, the vaping product is stamped at the time of packaging to indicate that additional vaping duty in respect of the specified vaping province has been paid.

Marginal note:Packaging and stamping of imported vaping products

• 158.47 (1) Except if prescribed circumstances exist, if a vaping product is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,

  • (a) be packaged in a package that has printed on it prescribed information;

  • (b) be stamped to indicate that vaping duty has been paid; and

  • (c) if the vaping product is to be entered in the duty-paid market of a specified vaping province, be stamped to indicate that additional vaping duty in respect of the specified vaping province has been paid.

• Marginal note:Exceptions for certain importations

  (2) Subsection (1) does not apply to a vaping product

  • (a) that is imported by a vaping product licensee for further manufacturing by the licensee;

  • (b) that a vaping product licensee is authorized to import under subsection 158.53(2); or

  • (c) that is imported by an individual for their personal use in quantities not in excess of prescribed limits.

Marginal note:Notice — absence of stamping

• 158.48 (1) The absence on a vaping product of stamping that indicates that vaping duty has been paid is notice to all persons that vaping duty has not been paid on the vaping product.

• Marginal note:Notice — specified vaping province

  (2) The absence on a vaping product of stamping that indicates that additional vaping duty in respect of a specified vaping province has been paid is notice to all persons that additional vaping duty in respect of the specified vaping province has not been paid on the vaping product.

Marginal note:Unstamped products to be warehoused

158.49 If vaping products manufactured in Canada are not stamped by a vaping product licensee, the vaping product licensee must immediately enter the vaping products into the licensee’s excise warehouse.

Marginal note:Vaping product markings — warehousing

• 158.5 (1) Subject to subsection (4), no person shall enter into an excise warehouse a container of vaping products unless the container has printed on it, or affixed to it, vaping product markings and other prescribed information.

• Marginal note:Vaping product markings — imports

  (2) Subject to subsections (3) and (4), no person shall deliver a container of imported vaping products that does not have printed on it, or affixed to it, vaping product markings and other prescribed information to

  • (a) an accredited representative; or

  • (b) a customs bonded warehouse.

• Marginal note:Delivery of imported stamped vaping products

  (3) A container of imported vaping products that were manufactured outside Canada and are stamped may be delivered to a customs bonded warehouse.

• Marginal note:Exception in prescribed circumstances

  (4) A container of vaping products does not require vaping product markings to be printed on it, or affixed to it, if prescribed circumstances exist.

Marginal note:Non-compliant imports

• 158.51 (1) If an imported vaping product intended for the duty-paid market is not stamped to indicate that vaping duty has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

• Marginal note:Non-compliant imports — specified vaping province

  (2) If an imported vaping product intended for the duty-paid market of a specified vaping province is not stamped to indicate that additional vaping duty in respect of the province has been paid when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being so stamped.

• Marginal note:Exception

  (3) Subsections (1) and (2) do not apply in prescribed circumstances.

Marginal note:Vaping products — waste removal

• 158.52 (1) No person shall remove a vaping product that is waste from the premises of a vaping product licensee other than the licensee or a person authorized by the Minister.

• Marginal note:Removal requirements

  (2) If a vaping product that is waste is removed from the premises of a vaping product licensee, it shall be dealt with in the manner authorized by the Minister.

Marginal note:Re-working or destruction of vaping products

• 158.53 (1) A vaping product licensee may re-work or destroy a vaping product in the manner authorized by the Minister.

• Marginal note:Importation for re-working or destruction

  (2) The Minister may authorize a vaping product licensee to import vaping products manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Responsibility for Vaping Products

Marginal note:Responsibility — vaping products manufactured in Canada

• 158.54 (1) Subject to section 158.55, a person is responsible for a vaping product manufactured in Canada at any time if

  • (a) the person is

    • (i) the vaping product licensee that owns the vaping product at that time, or

    • (ii) if the vaping product is not owned at that time by a vaping product licensee, the vaping product licensee that last owned it; or

  • (b) the person is a prescribed person.

• Marginal note:Responsibility — imported vaping products

  (2) Subject to sections 158.55 and 158.56, a person is responsible for an imported vaping product at any time if the person

  • (a) imported the vaping product; or

  • (b) is a prescribed person.

Marginal note:Person not responsible

158.55 A person that is responsible for a vaping product ceases to be responsible for it if

• (a) it is packaged and stamped and the duty on it is paid;

• (b) it is consumed or used in the manufacturing of a vaping product that is

  • (i) a vaping product drug, or

  • (ii) a prescribed vaping product;

• (c) it is taken for use and the duty on it is paid;

• (d) it is taken for use in accordance with any of subparagraphs 158.66(a)(i) to (iv);

• (e) it is exported;

• (f) it is delivered to an accredited representative for their personal or official use;

• (g) it is lost in prescribed circumstances and the person fulfils any prescribed conditions; or

• (h) prescribed circumstances exist.

Marginal note:Imports for personal use

158.56 An individual that imports vaping products for their personal use in quantities not in excess of prescribed limits is not responsible for those vaping products.

Imposition and Payment of Duty on Vaping Products

Marginal note:Imposition

158.57 Duty is imposed on vaping products manufactured in Canada or imported in the amount determined under Schedule 8 and is payable

• (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are packaged; and

• (b) in the case of imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.

Marginal note:Imposition — additional vaping duty

158.58 In addition to the duty imposed under section 158.57, a duty in respect of a specified vaping province is imposed on vaping products manufactured in Canada, or imported, in prescribed circumstances in the amount determined in a prescribed manner and is payable

• (a) in the case of vaping products manufactured in Canada, by the vaping product licensee that packaged the vaping products and at the time they are packaged; and

• (b) in the case of imported vaping products, by the importer, owner or other person that is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or that would be liable to pay that duty on the vaping products if they were subject to that duty.

Marginal note:Application of Customs Act

158.59 The duties imposed under sections 158.57 and 158.58 on imported vaping products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Duty on vaping products taken for use

• 158.6 (1) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, the following rules apply:

  • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

  • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

• Marginal note:Specified vaping province — taken for use

  (2) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

Marginal note:Duty on unaccounted vaping products

• 158.61 (1) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), the following rules apply:

  • (a) if the vaping products are packaged, they are relieved of the duty imposed under section 158.57; and

  • (b) duty is imposed on the vaping products in the amount determined in respect of the vaping products under Schedule 8.

• Marginal note:Specified vaping province — unaccounted vaping products

  (2) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), a duty in respect of a specified vaping province is imposed on the vaping products in prescribed circumstances in the amount determined in prescribed manner. That duty is in addition to the duty imposed under subsection (1).

• Marginal note:Duty payable

  (3) The duty imposed under subsection (1) or (2) is payable at the particular time, and by the particular person, referred to in that subsection.

• Marginal note:Exception

  (4) Subsection (1) does not apply in circumstances in which the particular person referred to in that subsection is convicted of an offence under section 218.2.

Marginal note:Duty relieved — unstamped vaping products

• 158.62 (1) The duties imposed under sections 158.57 and 158.58 are relieved on a vaping product that is not stamped.

• Marginal note:Vaping products imported for personal use

  (2) Subsection (1) does not apply to the importation of vaping products by an individual for their personal use to the extent that the quantity of the products imported exceeds the quantity permitted under Chapter 98 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to be imported without the payment of duties, as defined in Note 4 to that Chapter.

Marginal note:Duty relieved — importation by an individual

• 158.63 (1) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured in Canada and are stamped.

• Marginal note:Duty relieved — reimportation

  (2) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured outside Canada, were previously imported into Canada and are stamped.

Marginal note:Duty relieved — importation for destruction

158.64 The duties imposed under paragraphs 158.57(b) and 158.58(b) are relieved on a stamped vaping product that was manufactured in Canada by a vaping product licensee and that is imported for re-working or destruction in accordance with section 158.53.

Marginal note:Duty relieved — prescribed circumstances

158.65 The duties imposed under section 158.57 or 158.58 are relieved on a vaping product in prescribed circumstances.

Marginal note:Duty not payable

158.66 Duty is not payable on a vaping product

• (a) that is

  • (i) taken for analysis, or destroyed, by the Minister,

  • (ii) taken for analysis by a vaping product licensee in a manner approved by the Minister,

  • (iii) destroyed by a vaping product licensee in a manner approved by the Minister,

  • (iv) delivered by a vaping product licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

  • (v) a vaping product drug, or

  • (vi) a prescribed vaping product; or

• (b) in prescribed circumstances.

Excise Warehouses

Marginal note:Restriction — entering vaping products

158.67 No person shall enter into an excise warehouse

• (a) a vaping product that is stamped; or

• (b) any other vaping product except in accordance with this Act.

Marginal note:Prohibition on removal

• 158.68 (1) Except if prescribed circumstances exist, no person shall remove from an excise warehouse vaping products manufactured in Canada.

• Marginal note:Removal of Canadian manufactured vaping products

  (2) Subject to the regulations, a vaping product manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured it only if it is

  • (a) for export by the licensee in accordance with this Act; or

  • (b) for delivery to an accredited representative for their official or personal use.

• Marginal note:Removal from warehouse for re-working or destruction

  (3) Subject to the regulations, vaping products manufactured in Canada may be removed from the excise warehouse of the vaping product licensee that manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 158.53.

Marginal note:Removal of imported vaping products

• 158.69 (1) Except if prescribed circumstances exist, no person shall remove imported vaping products from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, imported vaping products may be removed from an excise warehouse

  • (a) for delivery to another excise warehouse;

  • (b) for delivery to an accredited representative for their official or personal use; or

  • (c) for export by the excise warehouse licensee in accordance with this Act.