Excise Act, 2001

As part of a response to questions respecting tobacco markings for cigars destined for sale in Canadian duty free shops, CRA provided the following general comments:

For Canadian manufactured cigars, paragraph 28(1)(b) of the Act stipulates that the tobacco product cannot be removed from the premises of the tobacco licensee unless it is packaged and if not intended for delivery to the duty-paid market that its container be marked.

Section 37 and subsection 38(1) of the Act requires that the packaged unstamped Canadian manufactured cigars be immediately placed in the tobacco licensee's excise warehouse and its containers display the appropriate tobacco marking and prescribed information. Paragraph 50(7)(f) of the Act then allows for the cigars to be removed from the excise warehouse for delivery to a duty free shop.

Paragraph 32(2)(b) permits an excise warehouse licensee to possess and sell imported cigars. Paragraph 51(2)(d) of the Act then permits imported cigars to be removed for delivery to a duty free shop.

For unstamped imported cigars, subsection 38(2) of the Act requires that the containers display tobacco markings and the prescribed information prior to delivery to a duty free shop.

A Canada Border Services Agency sufferance warehouse may not be utilized to mark imported tobacco products therefore the tobacco marking and prescribed information must be printed on or affixed to the containers prior to importation into Canada.