Regulations Respecting Excise Licences and Registrations

Regulations Respecting Excise Licences and Registrations Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 304(1) of the Excise Act, 2001a, hereby makes the annexed Regulations Respecting Excise Licences and Registrations. S.C. 2002, c. 22 The following definitions apply in these Regulations. Act means the Excise Act, 2001. (Loi) licence means a licence issued under section 14, 19, 20 or 22 of the Act. (licence) registration means a registration issued under any of sections 15 to 18 of the Act. (autorisation) In order to be issued a licence, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made. Subject to subsections (3) and (4), an applicant is eligible for a licence, other than a licence issued under section 22 of the Act, if they are not the subject of a receivership in respect of their debts; they have not, in the five years immediately before the date of the application, failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol, tobacco products, cannabis products or vaping products or any regulations made under it, or acted to defraud Her Majesty; in the case of an applicant who is an individual, they are at least eighteen years of age, and have sufficient financial resources to conduct their business in a responsible manner; in the case of an applicant that is a partnership or unincorporated body, where the partnership or unincorporated body is composed only of individuals, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body meets the requirement of subparagraph (c)(ii), where the partnership or unincorporated body is composed only of corporations, each of the corporations meets the requirement of subparagraph (c)(ii), and where the partnership or unincorporated body is composed of both individuals and corporations, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body and each of the corporations meet the requirement of subparagraph (c)(ii); and in the case of an applicant that is a corporation, the corporation meets the requirement of subparagraph (c)(ii). Subject to subsection (4), an applicant for a licence issued under section 19 of the Act authorizing them to possess in their excise warehouse non-duty-paid packaged alcohol must, in addition to meeting the requirements of subsection (2), where the province in which the warehouse is located has enacted legislation respecting the warehousing of packaged alcohol, be authorized by that province or its liquor authority to warehouse the alcohol at that warehouse. The additional requirement referred to in subsection (3) does not apply to an applicant who is an alcohol licensee that is producing or packaging alcohol in the province where the warehouse is located. [Repealed, SOR/2005-355, s. 1] In order to be issued a registration, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made. An applicant is eligible for a registration if they are not the subject of a receivership in respect of their debts; and failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products or any regulations made under it, or acted to defraud Her Majesty. A licence is valid for the period specified in the licence, which period in the case of a cannabis licence issued to a person, shall end on or before the date of expiry of the licence or permit issued to the person under subsection 62(1) of the Cannabis Act and shall not exceed five years; in the case of a vaping product licence, shall not exceed three years; or in any other case, shall not exceed two years. For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a tobacco licence, a cannabis licence or a vaping product licence must be an amount of not less than $5,000 and in the case of a spirits licence, be sufficient to ensure payment of all amounts in respect of bulk spirits referred to in sections 104 to 112 of the Act for which the licensee is or will be responsible up to a maximum amount of $2 million; in the case of a tobacco licence or a vaping product licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence; and in the case of a cannabis licence, if the licensee is authorized under subsection 159.2(2) of the Act to have reporting periods that are calendar quarters, be sufficient to ensure payment of one-third of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence, and in any other case, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $5 million per licence. The types of security that are acceptable for the purposes of paragraph 23(3)(b) of the Act are a bank draft; a certified cheque; a Canada Post money order; or a bond issued by an entity that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business in Canada and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as an entity whose bonds may be accepted by the Government of Canada, a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Act, a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum permitted by the statutes under which those institutions were established, a credit union as defined in subsection 137(6) of the Income Tax Act, or a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province. Every licensee and registrant shall, without delay, notify the Minister in writing of any changes to any of the information provided under these Regulations. Every licensee shall, without delay, notify the Minister in writing of any changes to the licensee’s fiscal months. The Minister shall amend a licence or registration if the Minister receives a notification pursuant to section 6 that necessitates the amendment. In order to have a licence renewed, a licensee must submit to the Minister a completed renewal application, in the form authorized by the Minister, not less than thirty days before the day on which the licence expires. A licensee is eligible to have a licence renewed if they have not ceased to meet the applicable requirements of section 2. The grounds for the suspension of a licence or registration by the Minister are that the licensee or registrant fails to meet any of the applicable requirements of section 2, 3, 6, 7 or 13; fails to meet the conditions of the licence or registration; is bankrupt; ceases to carry on the business for which the licence or registration was issued; fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls of alcohol, tobacco products, cannabis products or vaping products, or any regulations made under it; or acts to defraud His Majesty. The Minister shall, immediately after suspending a licence or registration, notify the licensee or registrant in writing of the suspension and provide all relevant information concerning the grounds for the suspension. The licensee or registrant may, within 90 days after the day on which the licence or registration is suspended, make representations to the Minister respecting the reasons why the licence or registration should be reinstated. The Minister shall reinstate a suspended licence or registration when the grounds for the suspension cease to exist. The grounds for the cancellation of a licence or registration by the Minister are that the licensee or registrant requests the Minister in writing to cancel the licence or registration; ceases to meet the applicable requirements of section 2 or 3, as the case may be; fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol, tobacco products, cannabis products or vaping products, or any regulations made under it; or acts to defraud Her Majesty. The Minister shall, before cancelling a licence or registration on any of the grounds referred to in paragraphs (1)(b) to (f), give the licensee or registrant 90 days notice of the proposed cancellation and provide them with all relevant information concerning those grounds. The licensee or registrant may, within 90 days after the day on which the notice referred to in subsection (2) is given, make representations to the Minister respecting the reasons why the licence or registration should not be cancelled. Every licensee and registrant shall provide, at the premises in respect of which the licence or registration is issued, adequate space for the examination of goods or records by an officer; the equipment and personnel necessary to ensure that the goods or records to be examined are made available to the officer; and the personnel necessary to furnish information, for audit purposes, to an officer with respect to the operations, inventory system and records system of the licensee or registrant. These Regulations take effect on April 1, 2003.