Excise Duties on Cannabis Regulations

Excise Duties on Cannabis Regulations Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to sections 304a and 304.1b of the Excise Act, 2001c, makes the annexed Excise Duties on Cannabis Regulations. S.C. 2018, c. 12, s. 91 S.C. 2018, c. 12, s. 92 S.C. 2002, c. 22 Definitions The following definitions apply in these Regulations. Act means the Excise Act, 2001. (Loi) base amount means, in respect of a cannabis product and a listed specified province, if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase, the fair market value of the cannabis product; and in any other case, the amount determined by the formula is the total determined for A in paragraph (a) of the definition dutiable amount in section 2 of the Act in respect of the cannabis product, is the total determined under section 1 of Schedule 7 to the Act in respect of the cannabis product, is (i)if the listed specified province is Ontario, the amount determined under section 1 of Schedule 1 in respect of the cannabis product, if the listed specified province is Ontario, the amount determined under section 1 of Schedule 1 in respect of the cannabis product, (ii)if the listed specified province is New Brunswick, the amount determined under section 1 of Schedule 4 in respect of the cannabis product, if the listed specified province is New Brunswick, the amount determined under section 1 of Schedule 4 in respect of the cannabis product, (iii)if the listed specified province is Prince Edward Island, the amount determined under section 1 of Schedule 6 in respect of the cannabis product, if the listed specified province is Prince Edward Island, the amount determined under section 1 of Schedule 6 in respect of the cannabis product, (iv)if the listed specified province is Saskatchewan, the amount determined under section 1 of Schedule 7 in respect of the cannabis product, if the listed specified province is Saskatchewan, the amount determined under section 1 of Schedule 7 in respect of the cannabis product, (v)if the listed specified province is Alberta, the amount determined under section 1 of Schedule 8 in respect of the cannabis product, if the listed specified province is Alberta, the amount determined under section 1 of Schedule 8 in respect of the cannabis product, (vi)if the listed specified province is Newfoundland and Labrador, the amount determined under section 1 of Schedule 9 in respect of the cannabis product, and if the listed specified province is Newfoundland and Labrador, the amount determined under section 1 of Schedule 9 in respect of the cannabis product, and (vii)if the listed specified province is Nunavut, the amount determined under section 1 of Schedule 12 in respect of the cannabis product, and if the listed specified province is Nunavut, the amount determined under section 1 of Schedule 12 in respect of the cannabis product, and (i)if the listed specified province is Ontario, the percentage set out in section 5 of Schedule 1, if the listed specified province is Ontario, the percentage set out in section 5 of Schedule 1, (ii)if the listed specified province is New Brunswick, the percentage set out in section 5 of Schedule 4, if the listed specified province is New Brunswick, the percentage set out in section 5 of Schedule 4, (iii)if the listed specified province is Prince Edward Island, the percentage set out in section 5 of Schedule 6, if the listed specified province is Prince Edward Island, the percentage set out in section 5 of Schedule 6, (iv)if the listed specified province is Saskatchewan, the percentage set out in section 5 of Schedule 7, if the listed specified province is Saskatchewan, the percentage set out in section 5 of Schedule 7, (v)if the listed specified province is Alberta, the percentage set out in section 5 of Schedule 8, if the listed specified province is Alberta, the percentage set out in section 5 of Schedule 8, (vi)if the listed specified province is Newfoundland and Labrador, the percentage set out in section 5 of Schedule 9, and if the listed specified province is Newfoundland and Labrador, the percentage set out in section 5 of Schedule 9, and (vii)if the listed specified province is Nunavut, the percentage set out in section 5 of Schedule 12. (montant de base) if the listed specified province is Nunavut, the percentage set out in section 5 of Schedule 12. (montant de base) listed specified province means any of the following specified provinces: Ontario; New Brunswick; Prince Edward Island; Saskatchewan; Alberta; Newfoundland and Labrador; and Nunavut. (province déterminée désignée) Cannabis product — exclusions For the purposes of the definition cannabis product in section 2 of the Act, the following substances, materials or things are not included: a test kit, as defined in subsection 1(2) of the Cannabis Regulations, for which a registration number has been issued, but not cancelled, under those Regulations; and a reference standard, being a highly purified and standardized form of a given substance used as a measurement base to confirm the identity, strength, quality or purity of a substance, that contains a known quantity or concentration of a chemical component of cannabis, such as cannabidiol, cannabidiolic acid, THCA or THC, that is designed to be used during the course of a chemical or analytical procedure for a medical, laboratory, industrial, educational, law administration or enforcement, or research purpose, and that is not intended to be consumed or administered. Dutiable amount — prescribed percentage For the purposes of subparagraph (i) of the description of C in paragraph (a) of the definition dutiable amount in section 2 of the Act, the prescribed percentage in respect of a specified province is in the case of Ontario, the total of the percentage set out in paragraph 2(a) of Schedule 1, and the percentage set out in section 5 of Schedule 1; in the case of Quebec, the percentage set out in paragraph 2(a) of Schedule 2; in the case of Nova Scotia, the percentage set out in paragraph 2(a) of Schedule 3; in the case of New Brunswick, the total of the percentage set out in paragraph 2(a) of Schedule 4, and the percentage set out in section 5 of Schedule 4; in the case of British Columbia, the percentage set out in paragraph 2(a) of Schedule 5; in the case of Prince Edward Island, the total of the percentage set out in paragraph 2(a) of Schedule 6, and the percentage set out in section 5 of Schedule 6; in the case of Saskatchewan, the total of the percentage set out in paragraph 2(a) of Schedule 7, and the percentage set out in section 5 of Schedule 7; in the case of Alberta, the total of the percentage set out in paragraph 2(a) of Schedule 8, and the percentage set out in section 5 of Schedule 8; in the case of Newfoundland and Labrador, the total of the percentage set out in paragraph 2(a) of Schedule 9, and the percentage set out in section 5 of Schedule 9; in the case of Yukon, the percentage set out in paragraph 2(a) of Schedule 10; in the case of the Northwest Territories, the percentage set out in paragraph 2(a) of Schedule 11; and in the case of Nunavut, the total of the percentage set out in paragraph 2(a) of Schedule 12, and the percentage set out in section 5 of Schedule 12. Dutiable amount — prescribed circumstances For the purposes of paragraph (b) of the definition dutiable amount in section 2 of the Act, if a cannabis product is delivered or made available in a specified province to a person that obtains it otherwise than by means of a purchase and if an amount in respect of the cannabis product is to be determined under any of sections 2 and 6 of Schedules 1, 4, 6 to 9 and 12 and section 2 of Schedules 2, 3, 5, 10 and 11, the dutiable amount of the cannabis product is equal to the fair market value of the cannabis product. Specified province For the purposes of the definition specified province in section 2 of the Act, the following provinces are prescribed: Quebec; Nova Scotia; British Columbia; Newfoundland and Labrador; Yukon; the Northwest Territories; and Nunavut. Subsections 158.2(1) and 158.27(3) of Act — prescribed circumstances For the purposes of subsections 158.2(1) and 158.27(3) of the Act, a duty in respect of a specified province is imposed under those subsections on cannabis products produced in Canada if the cannabis products are for consumption, use or sale to consumers in the specified province. Subsections 158.2(1) and 158.27(3) of Act — calculation of duty For the purposes of subsections 158.2(1) and 158.27(3) of the Act, the amount of duty imposed under those subsections in respect of cannabis products produced in Canada and in respect of a specified province is determined as follows: in the case of Ontario, the amount that is equal to the total of the amount that is the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 1, and the amount determined in respect of the cannabis products under section 2 of Schedule 1, and the amount determined in respect of the cannabis products under section 5 of Schedule 1 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 1 in any other case; in the case of Quebec, the amount that is equal to the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 2, and the amount determined in respect of the cannabis products under section 2 of Schedule 2; in the case of Nova Scotia, the amount that is equal to the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 3, and the amount determined in respect of the cannabis products under section 2 of Schedule 3; in the case of New Brunswick, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 4, and the amount determined in respect of the cannabis products under section 2 of Schedule 4, and section 5 of Schedule 4 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 4 in any other case; in the case of British Columbia, the amount that is equal to the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 5, and the amount determined in respect of the cannabis products under section 2 of Schedule 5; in the case of Prince Edward Island, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 6, and the amount determined in respect of the cannabis products under section 2 of Schedule 6, and section 5 of Schedule 6 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 6 in any other case; in the case of Saskatchewan, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 7, and the amount determined in respect of the cannabis products under section 2 of Schedule 7, and section 5 of Schedule 7 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 7 in any other case; in the case of Alberta, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 8, and the amount determined in respect of the cannabis products under section 2 of Schedule 8, and section 5 of Schedule 8 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 8 in any other case; in the case of Newfoundland and Labrador, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 9, and the amount determined in respect of the cannabis products under section 2 of Schedule 9, and section 5 of Schedule 9 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 9 in any other case; in the case of Yukon, the amount that is equal to the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 10, and the amount determined in respect of the cannabis products under section 2 of Schedule 10; in the case of the Northwest Territories, the amount that is equal to the greater of the amount determined in respect of the cannabis products under section 1 of Schedule 11, and the amount determined in respect of the cannabis products under section 2 of Schedule 11; and in the case of Nunavut, the amount that is equal to the total of the amount determined in respect of the cannabis products under section 1 of Schedule 12, and the amount determined in respect of the cannabis products under section 2 of Schedule 12, and section 5 of Schedule 12 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or section 6 of Schedule 12 in any other case. Subsection 158.22(1) of Act — prescribed circumstances For the purposes of subsection 158.22(1) of the Act, a duty in respect of a specified province is imposed under that subsection on imported cannabis products if the person that is liable under subsection 158.22(2) of the Act to pay the duty is resident in the specified province. Residence For the purposes of subsection (1), a person is deemed to be resident in a province if the person is deemed under section 132.1 of the Excise Tax Act to be resident in that province for the purposes of Part IX of that Act. Subsection 158.22(1) of Act — calculation of duty For the purposes of subsection 158.22(1) of the Act, the amount of duty imposed under that subsection in respect of imported cannabis products and in respect of a specified province is determined as follows: the amount determined in respect of the cannabis products under section 3 of Schedule 1, and the amount determined in respect of the cannabis products under section 7 of Schedule 1; the amount determined in respect of the cannabis products under section 3 of Schedule 2; the amount determined in respect of the cannabis products under section 3 of Schedule 3; the amount determined in respect of the cannabis products under section 3 of Schedule 4, and the amount determined in respect of the cannabis products under section 7 of Schedule 4; the amount determined in respect of the cannabis products under section 3 of Schedule 5; the amount determined in respect of the cannabis products under section 3 of Schedule 6, and the amount determined in respect of the cannabis products under section 7 of Schedule 6; the amount determined in respect of the cannabis products under section 3 of Schedule 7, and the amount determined in respect of the cannabis products under section 7 of Schedule 7; the amount determined in respect of the cannabis products under section 3 of Schedule 8, and the amount determined in respect of the cannabis products under section 7 of Schedule 8; the amount determined in respect of the cannabis products under section 3 of Schedule 9, and the amount determined in respect of the cannabis products under section 7 of Schedule 9; the amount determined in respect of the cannabis products under section 3 of Schedule 10; the amount determined in respect of the cannabis products under section 3 of Schedule 11; and the amount determined in respect of the cannabis products under section 3 of Schedule 12, and the amount determined in respect of the cannabis products under section 7 of Schedule 12. Subsection 158.25(2) of Act — prescribed circumstances For the purposes of subsection 158.25(2) of the Act, a duty in respect of a specified province is imposed under that subsection on cannabis products if the location of the cannabis products at the particular time referred to in that subsection is in the specified province. Subsection 158.26(2) of Act — prescribed circumstances For the purposes of subsection 158.26(2) of the Act, a duty in respect of a specified province is imposed under that subsection on cannabis products that cannot be accounted for if the last known location of the cannabis products before the particular time referred to in that subsection is in the specified province. Subsections 158.25(2) and 158.26(2) of Act — calculation of duty For the purposes of subsections 158.25(2) and 158.26(2) of the Act, the amount of duty imposed under those subsections in respect of cannabis products and a specified province is determined as follows: the amount determined in respect of the cannabis products under section 4 of Schedule 1, and the amount determined in respect of the cannabis products under section 8 of Schedule 1; the amount determined in respect of the cannabis products under section 4 of Schedule 2; the amount determined in respect of the cannabis products under section 4 of Schedule 3; the amount determined in respect of the cannabis products under section 4 of Schedule 4, and the amount determined in respect of the cannabis products under section 8 of Schedule 4; the amount determined in respect of the cannabis products under section 4 of Schedule 5; the amount determined in respect of the cannabis products under section 4 of Schedule 6, and the amount determined in respect of the cannabis products under section 8 of Schedule 6; the amount determined in respect of the cannabis products under section 4 of Schedule 7, and the amount determined in respect of the cannabis products under section 8 of Schedule 7; the amount determined in respect of the cannabis products under section 4 of Schedule 8, and the amount determined in respect of the cannabis products under section 8 of Schedule 8; the amount determined in respect of the cannabis products under section 4 of Schedule 9, and the amount determined in respect of the cannabis products under section 8 of Schedule 9; the amount determined in respect of the cannabis products under section 4 of Schedule 10; the amount determined in respect of the cannabis products under section 4 of Schedule 11; and the amount determined in respect of the cannabis products under section 4 of Schedule 12, and the amount determined in respect of the cannabis products under section 8 of Schedule 12. Prescribed provinces — offences For the purposes of subparagraph (i) of the description of C in paragraph 218.1(2)(a) of the Act and subparagraph (i) of the description of C in paragraph 218.1(3)(a) of the Act, the following provinces are prescribed: Alberta; and Prescribed provinces — penalties For the purposes of paragraph (a) of the description of C in section 233.1 of the Act, paragraph (a) of the description of C in section 234.1 of the Act and subparagraph 238.1(2)(b)(iii) of the Act, the following provinces are prescribed: September 17, 2018 These Regulations, except for sections 2 and 8, are deemed to have come into force on September 17, 2018, except that, before October 17, 2018, section 9 is to be read without reference to “paragraph (a) of the description of C in section 234.1 of the Act”. June 21, 2018 Section 2 is deemed to have come into force on June 21, 2018, except that, before October 17, 2018, paragraph 2(a) is to be read as follows: a test kit, as defined in subsection 2(1) of the Narcotic Control Regulations, that contains cannabis and for which a registration number has been issued, but not cancelled, under those Regulations; and Publication Section 8 comes into force on the day on which these Regulations are published in the Canada Gazette. Any cannabis product produced in Canada or imported: the amount equal to in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the total of $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product, $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product, $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product; and in any other case, $0.0075 per milligram of the total THC of the cannabis product. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 7.5%; and in any other case, 0%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Ontario by 3.9%. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 3.9%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 3.9%. Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 3.9%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for New Brunswick by 0%. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 0%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 0%. Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 0%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Prince Edward Island by 0%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Saskatchewan by 6.45%. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 6.45%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 6.45%. Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 6.45%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Alberta by 16.8%. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 16.8%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 16.8%. Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 16.8%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Newfoundland and Labrador by 0%. Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Nunavut by 19.3%. Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 19.3%. Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 19.3%. Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 19.3%. In applying subsection 5(2) of the Excise Duties on Cannabis Regulations for the purpose of determining the amount of duty imposed under subsection 158.2(1) of the Excise Act, 2001 after April 30, 2019 on any cannabis product that is packaged before May 1, 2019, Schedules 1 to 12 to those Regulations are to be read as they did on April 30, 2019.