Excise Act (R.S.C., 1985, c. E-14)

Act current to 2016-07-07 and last amended on 2010-12-15. Previous Versions

Marginal note:Reduced rates — production

  • 170.1 (1) With respect to the first 75,000 hectolitres of beer and malt liquor brewed in Canada per year by a licensed brewer and any person related or associated with the brewer, there shall be imposed, levied and collected on each of those hectolitres the duties of excise set out in Part II.1 of the schedule, which duties shall be paid to the collector as provided in this Act, and section 170 does not apply to those hectolitres.

  • Marginal note:Reduced rates — packaging

    (2) If the beer or malt liquor described by subsection (1) is packaged by a licensed brewer (in this subsection, referred to as the “packaging brewer”) other than the licensed brewer or related or associated person referred to in that subsection, there shall be imposed, levied and collected on every hectolitre of beer or malt liquor packaged by the packaging brewer duties of excise at the rates that applied to the beer or malt liquor under subsection (1).

  • Marginal note:Exclusion of exports and de-alcoholized beer

    (3) In subsection (1), the reference to “first 75,000 hectolitres of beer and malt liquor brewed in Canada” does not include

    • (a) beer or malt liquor that is exported or deemed to be exported under section 173; and

    • (b) beer or malt liquor containing not more than 0.5 % absolute ethyl alcohol by volume.

  • Marginal note:Treatment of contract production

    (4) If, at any time, beer or malt liquor is brewed by a licensed brewer for another licensed brewer under an agreement with the other brewer, subsection (1) applies as though it had been brewed by the brewer who has brewed the greater volume of beer and malt liquor during the year up to that time.

  • Marginal note:Election for related or associated licensees

    (5) If a licensed brewer is related or associated with one or more other licensed brewers, each of the brewers must file with the Minister an election in a form and manner satisfactory to the Minister that allocates the 75,000 hectolitre quantity amongst the brewers. The election must be filed no later than the filing due date of the first return in which the brewer reports duties that are imposed, levied and collected under subsection (1).

  • Marginal note:Brewer formed by business combination

    (6) For the purposes of this section, if, in a year, two or more brewers (each of which is referred to in this subsection as a “predecessor brewer”) are amalgamated, merged or otherwise combined to form a new brewer, the following rules apply:

    • (a) the aggregate production of beer and malt liquor of the new and predecessor brewers for that year will be used for the purposes of applying subsection (1);

    • (b) the new brewer must determine the amount of duty that would have been imposed, levied and collected under subsection (1) on the aggregate production; and

    • (c) the new brewer is liable for and must, within 60 days of the combination, report and pay any difference between the amount calculated under paragraph (b) and the amounts paid by the predecessor brewers.

  • 2007, c. 2, s. 61.
Marginal note:Computation of duty

171 The duty imposed by this Act on beer or malt liquor shall be charged and computed in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 171;
  • 1999, c. 17, s. 144(E).
Marginal note:Beer brewed for non-commercial use

  • 172 (1) Notwithstanding sections 170 and 171, the duties of excise thereby imposed shall not be levied or collected on beer that is made or brewed by any person for personal or family consumption or to be given away without charge and that is not for sale or commercial use.

  • Marginal note:Exempt brewing apparatus

    (2) Any apparatus used only for making or brewing beer in the circumstances described in subsection (1) is exempt from the provisions of this Act respecting the possession of brewing apparatus by unlicensed persons.

  • (3) and (4) [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 64]

  • Marginal note:Offence and punishment

    (5) Every one who makes or brews beer for personal or family consumption or to be given away without charge and who sells or puts to a commercial use beer so made or brewed is guilty of an indictable offence and liable to the penalties provided by subsection 176(1) for making or brewing beer without a licence.

  • R.S., 1985, c. E-14, s. 172;
  • R.S., 1985, c. 7 (2nd Supp.), s. 64.
Marginal note:Drawback on beer exported

  • 173 (1) Every licensed brewer who exports beer or malt liquor of his own manufacture is entitled to receive a drawback equivalent to the duty imposed thereon, and the amount of the drawback shall be computed in such manner and by such means as are directed by ministerial regulations.

  • Marginal note:Notice of intention to export

    (2) No drawback under this section shall be allowed or paid unless the brewer claiming it gave notice to an officer of his intention to export the beer or malt liquor in respect of which the drawback is claimed and made such declaration respecting the quantity thereof as is required by ministerial regulations.

  • Marginal note:Transactions deemed to be exports

    (3) For the purposes of this section and section 174, the delivery of beer or malt liquor

    • (a) for use as ships’ stores, or

    • (b) to or for the use of any person or class of persons designated by the Governor in Council,

    under such conditions as the Governor in Council prescribes, shall be deemed to be an export.

  • R.S., 1985, c. E-14, s. 173;
  • 1999, c. 17, s. 144(E);
  • 2002, c. 22, s. 425(F).
Marginal note:Regulations

  • 174 (1) The Governor in Council may make such regulations as to him seem necessary for carrying into effect and enforcing the provisions of this Act respecting the operation of a licensed brewery, the information to be shown on containers, the keeping of records, the making of entries and returns, the sale or removal from a licensed brewery of beer for exportation and the collection of the duties imposed by this Act.

  • Marginal note:Idem

    (2) Regulations made under this section may provide for the destruction of beer that has become unfit for use

    • (a) in storage tanks, bottles, kegs or other containers, before it was shipped from the brewery, or

    • (b) in the containers in which it was shipped from the brewery,

    and for the refunding to the brewer, in whole or in part, of the duty paid on beer so destroyed.

  • R.S., 1985, c. E-14, s. 174;
  • R.S., 1985, c. 7 (2nd Supp.), s. 65, c. 12 (4th Supp.), s. 64;
  • 2000, c. 30, s. 168(F).

Returns

Marginal note:Every brewer to make returns

175 Every person who carries on business as a brewer shall render to the collector a just and true account in writing, extracted from the books kept as required by this Act, and the account shall exhibit such particulars as may be required by ministerial regulations.

  • R.S., 1985, c. E-14, s. 175;
  • 1999, c. 17, s. 144(E).

Offences and Punishment

Marginal note:Brewing without a licence

  • 176 (1) Every person who, without having a licence under this Act then in force,

    • (a) makes or brews any beer or malt liquor, except beer that is made or brewed for personal or family consumption or to be given away without charge and that is not for sale or commercial use, or

    • (b) has in his possession, whether the owner thereof or not, any beer or malt liquor that has not been made or brewed, distributed or disposed of in accordance with this Act,

    is guilty of an indictable offence and liable

    • (c) for a first offence, to a fine of not more than one hundred dollars and not less than twenty-five dollars, and in default of payment of the fine to a term of imprisonment, with or without hard labour, of not more than three months and not less than one month, and

    • (d) for each subsequent offence, to a fine of not more than two hundred and fifty dollars and not less than one hundred and fifty dollars, and in default of payment of the fine to a term of imprisonment with hard labour of not more than six months and not less than two months.

  • Marginal note:Additional punishment

    (2) Every person who becomes liable to the punishment provided for in subsection (1) shall, in addition thereto, forfeit and pay for the use of Her Majesty double the amount of excise duty and licence fee that should have been paid by that person under this Act.

  • Marginal note:Exception

    (3) Subsection (1) does not apply to a person who is licensed as a spirits licensee under section 14 of the Excise Act, 2001 and who produces beer solely for the purpose of distilling the beer.

  • R.S., 1985, c. E-14, s. 176;
  • R.S., 1985, c. 7 (2nd Supp.), s. 66;
  • 2002, c. 22, s. 365.
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