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Excise Act (R.S.C., 1985, c. E-14)

Full Document:  

Act current to 2022-09-22 and last amended on 2022-07-01. Previous Versions

PART IIDistilleries (continued)

Duties of Excise (continued)

Marginal note:Number and capacity of receivers

  •  (1) In every distillery two closed spirit-receivers shall be provided, each of such capacity as may be required by the Minister.

  • Marginal note:Quantities produced ascertained by regulations

    (2) The quantities of spirits produced in a distillery shall be ascertained in such manner as may be prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 143
  • R.S., 1985, c. 12 (4th Supp.), s. 62
  • 1999, c. 17, s. 144(E)

Marginal note:Spirit not to be removed

 The spirit that passes from the tail of the worm to the closed spirit-receiver shall not be removed from the closed spirit-receiver except for the purpose of ascertaining the quantity and strength thereof as provided by this Act or by ministerial regulations.

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

Marginal note:Receiver to be a closed vessel and locked

 The closed spirit-receiver shall be a closed vessel and all pipes, cocks or valves communicating therewith, as well as all means of access thereto, shall be securely locked or sealed, and the key or keys shall be kept and controlled, in the manner prescribed by ministerial regulations, by such officer or employee of the distiller as is designated for that purpose by the distiller in accordance with the ministerial regulations.

  • R.S., 1985, c. E-14, s. 145
  • R.S., 1985, c. 12 (4th Supp.), s. 63
  • 1999, c. 17, s. 144(E)

Marginal note:Space for examination around apparatus

  •  (1) Around, above and below every closed spirit-receiver and every apparatus used for gauging or testing the strength of spirits, and every safe or apparatus used for enclosing or guarding the tail of the worm, and around and above every fermenting-tun, still charger, beer pump or spirit pump, there shall be sufficient space to admit of a full and careful examination of each vessel or apparatus, with the contents thereof, and there shall be sufficient light for the purpose of that examination.

  • Marginal note:Beer reservoir

    (2) The beer reservoir in every distillery shall be so placed that it and every pipe, trough, hose or conduit leading into or from it may be fully seen and examined, and no pipes, troughs, hoses or conduits for the passage of any water, spirits, wash or other liquid shall be placed near to any such beer reservoir, or so that any fluid whatever can be run into it, except with the knowledge of the officer in charge.

  • Marginal note:Licence cancelled for non-compliance

    (3) Any failure to comply with the requirements or provisions of this section, after a notice of one month has been given of the default, is sufficient cause for cancelling any licence granted to the distiller so in default, and no further licence shall be granted to any person for distilling within the premises in which the default has occurred, until all the requirements of this section and the preceding sections have been fully complied with.

  • R.S., c. E-12, s. 145

Marginal note:Certain apparatus to be locked up

  •  (1) In every distillery that is not working, all the worms, still-heads, closed spirit-receivers and doublers, with all pipes and cocks leading to or connecting with them shall be closed and locked or sealed in such manner as the collector or inspecting officer requires or directs, and the absence from any worm, still-head, closed spirit-receiver, doubler or cock of the locks or seals required by this subsection, subjects the distiller in whose distillery the default has occurred to the same penalties as he would be liable to for working without a licence.

  • Marginal note:Exception

    (2) Notwithstanding subsection (1), whenever it becomes necessary to execute any repairs to any of the apparatus mentioned in that subsection, the locks and seals may be removed by the proper officer, to such extent as is actually necessary for the performance of the repairs, and during the period they are actually in progress.

  • R.S., c. E-12, s. 146

Marginal note:Certain apparatus to be locked or sealed

 In distilleries where a doubler is used or where a portion of the products of the still, commonly called low wines or faints, are passed over for redistillation, the vessels and pipes used in that process shall be locked or sealed and shall receive the low wines from the safe or apparatus that encloses the tail of the worm, through suitable metal pipes, cocks or valves properly secured by locks or seals, so as to prevent the running or removal of any liquid therefrom, except with the knowledge and concurrence of the proper officer.

  • R.S., c. E-12, s. 147

Returns

Marginal note:What distiller’s accounts must show

 Every one who carries on business as a distiller 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 prescribed by ministerial regulations.

  • R.S., 1985, c. E-14, s. 149
  • 1999, c. 17, s. 144(E)

Bonding and Warehousing

Marginal note:Entering for warehousing, warehousing and ex-warehousing

  •  (1) All spirits produced, brought into or removed from a distillery shall be warehoused, entered for warehouse or ex-warehoused in such manner and put up in such packages or quantities as may be prescribed by ministerial regulations.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations governing the redistillation, distillery stock operations, vatting, blending, racking, rewarehousing, reducing and handling of spirits in warehouse or in transit from one warehouse to another.

  • R.S., 1985, c. E-14, s. 150
  • 1999, c. 17, s. 144(E)

Marginal note:Equivalent how determined

 The Governor in Council may, by regulation, fix the quantity or the mode of determining the quantity of spirits that shall be held to be equivalent to any assigned mass of molasses.

  • R.S., c. E-12, s. 150
  • 1980-81-82-83, c. 68, s. 60

Marginal note:Stowage of casks

 All casks of spirits shall be arranged and stowed in the warehouse so that access may be easily had to each cask, and so that the marks and numbers thereon may be conveniently read or ascertained.

  • R.S., c. E-12, s. 151

Marginal note:No refund of duties except under regulations

 The duty paid on spirits taken out of warehouse for consumption, or that have gone directly into consumption, shall not be refunded by way of drawback, or otherwise on the exportation of those spirits out of Canada, unless when specially permitted by regulation made by the Governor in Council in that behalf.

  • R.S., c. E-12, s. 152

Marginal note:Bottling of spirits in bond

 The Governor in Council may make regulations authorizing the bottling of spirits in bond at any licensed distillery and the removal therefrom of those spirits after being so bottled.

  • R.S., c. E-12, s. 153
  • R.S., c. 15(1st Supp.), s. 22

Marginal note:Labels on bottles

 Subject to the Trademarks Act and the Food and Drugs Act, no person shall attach to any bottle, flask or other package of spirits any label, stamp or other device containing any statement or information other than the name of the spirits and the name of the bottler and his place of residence, unless the form and wording thereof have first been approved by the Minister.

Permits

Marginal note:Removal of spirits from distillery

 No spirits shall be removed from any distillery, or from any warehouse in which they have been bonded or stored, until a permit for that removal has been granted in such form and by such authority as the Governor in Council, from time to time, directs and determines.

  • R.S., c. E-12, s. 155
  • R.S., c. 15(1st Supp.), s. 23

Marginal note:Officer may examine packages being removed

  •  (1) Any officer, or any constable or peace officer, having general authority therefor from any superior officer, may stop and detain any person or vehicle carrying packages of any kind believed by him to contain spirits, and may examine those packages and require the production of a permit authorizing the removal thereof.

  • Marginal note:Permit to be endorsed

    (2) If the permit required by subsection (1) is produced, the officer shall endorse the time and place of examination thereon.

  • Marginal note:Detention if no permit

    (3) If the permit required by subsection (1) is not produced and the packages are found to contain spirits, the packages may, with their contents, be detained until evidence to the satisfaction of the officer is adduced that the spirits were being lawfully removed and that the duty thereon had been paid.

  • R.S., c. E-12, s. 156

Offences and Punishment

Marginal note:Exercising any business of distilling without licence

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

    • (a) distils or rectifies any spirits, or makes or ferments any beer, wash or wort,

    • (b) assists in distilling or rectifying any spirits, or in making or fermenting any beer, wash or wort, in any unlicensed place,

    • (c) imports, makes, commences to make, sells, offers for sale or delivers any still, worm, rectifying or other apparatus suitable for the manufacture of spirits or for the rectification of spirits, or any part of the apparatus,

    • (d) completely or partially sets up or assists in setting up, prepares or partially prepares for working, any such still, worm, rectifying or other apparatus,

    • (e) has in his possession, in any place, any such still, worm, rectifying or other apparatus, or any part or parts thereof, or any beer, wash or wort suitable for the manufacture of spirits, except in cases of duly registered chemical stills as provided for in this Act, or in whose place or on whose premises those things are found,

    • (f) conceals or keeps, or allows or suffers to be concealed, or kept, in any place or premises owned or controlled by him, any such still, worm, rectifying or other apparatus, or part thereof, or any beer, wash or wort suitable for the manufacture of spirits, or

    • (g) conceals by removing, or removes, or assists in concealing by removing or otherwise, any such still, worm, rectifying or other apparatus, or part thereof, or any beer, wash or wort suitable for the manufacture of spirits,

    is guilty of an indictable offence and liable to

    • (h) a fine of not more than ten thousand dollars and not less than five hundred dollars,

    • (i) imprisonment for a term not exceeding twelve months, or

    • (j) both fine and imprisonment

    and, in default of payment of a fine imposed under paragraph (h) or (j), to imprisonment for a term not exceeding twelve months in addition to the imprisonment, if any, imposed under paragraph (i) or (j).

  • Marginal note:Apparatus to be seized

    (2) All stills, worms, fermenting-tuns, rectifying or other apparatus suitable for the manufacture of spirits, or for the rectification of spirits, or parts thereof, and all beer, wash, wort or spirits that are found in the possession of any unlicensed person, or in any unlicensed place, shall be forfeited to the Crown, and shall be seized by any officer, and may either be destroyed when and where found or removed to a place of safe-keeping in the discretion of the seizing officer.

  • Marginal note:Exception

    (3) Nothing in this section applies to anyone duly licensed to carry on the trade or business of a distiller or the trade or business of rectifying spirits.

  • R.S., c. E-12, s. 158
  • R.S., c. 15(1st Supp.), s. 25
  • 1980-81-82-83, c. 68, s. 61

Marginal note:Additional punishment

 Every person who has been convicted of an offence under section 158 or adjudged liable to the punishment therein provided shall in addition to that punishment forfeit and pay for the use of Her Majesty double the amount of excise duty and licence fee that should have been paid by him under this Act.

  • R.S., c. E-12, s. 159

Marginal note:Apparatus perforated or plugged

  •  (1) Where in any distillery there is at any time found a vessel that may be used for containing any of the products resulting from distillation before the quantity of the products is determined and an account taken thereof, in which there is any perforation, hole or aperture, other than such as is necessary for the lawful use of the vessel, or in contravention of this Act, the distiller in whose distillery the vessel so perforated is found, although the holes or apertures or perforations have been plugged or stopped, shall incur a penalty of five hundred dollars, and the vessel, with its contents, together with all the stock of spirits or grain in the distillery at the time the unlawful perforation is discovered, shall be forfeited to the Crown and dealt with accordingly.

  • Marginal note:Exception

    (2) A hole or perforation accidentally made may with the permission of the Minister be repaired under the supervision of an officer.

  • R.S., c. E-12, s. 160

Marginal note:Removing spirits

  •  (1) Spirits removed from any distillery or warehouse in which they have been bonded or stored before a permit for that removal has been granted as required by section 156 shall be forfeited to the Crown and shall be seized and detained by any officer and dealt with accordingly.

  • Marginal note:Package detained

    (2) Where any package containing spirits has been detained by any officer by reason of the package being carried by any person or vehicle without a permit and if within thirty days after the detention thereof evidence is not adduced to the satisfaction of the officer that the spirits were being lawfully removed and that the duty thereon had been paid, the package and spirits so detained shall be forfeited to the Crown and dealt with accordingly.

  • R.S., c. E-12, s. 161

Marginal note:Removal of spirits contrary to regulations

 Where spirits are removed from a distillery in a cask or package containing less than a quantity prescribed by the regulations, those spirits are forfeited to the Crown and shall be seized by an officer and dealt with accordingly.

  • R.S., c. E-12, s. 162
  • R.S., c. 15(1st Supp.), s. 26

Marginal note:Sale of spirits unlawfully manufactured, etc.

  •  (1) Every person is guilty of an indictable offence who, without lawful excuse, sells or offers for sale or purchases or has in the person’s possession any spirits, whether or not the person is the owner thereof,

    • (a) unlawfully manufactured;

    • (b) unlawfully imported;

    • (c) unlawfully or fraudulently removed from any distillery;

    • (d) unlawfully or fraudulently removed from any bonded manufactory;

    • (e) unlawfully or fraudulently removed from any bonded warehouse;

    • (f) unlawfully or fraudulently removed from any place where spirits subject to drawback are held;

    • (g) that have been released from excise bond exempt from duty as being for the use of a person or organization by law entitled to the exemption, but which spirits have been subsequently sold or otherwise disposed of to a person not entitled to any exemption; or

    • (h) that have been released from excise bond either free or at a reduced rate of duty for a specific use and have been subsequently diverted to a use other than that for which the exemption was given.

  • Marginal note:Punishment

    (2) Every person who is convicted of an offence under subsection (1) is liable to

    • (a) a fine of not more than ten thousand dollars and not less than five hundred dollars,

    • (b) imprisonment for a term not exceeding twelve months, or

    • (c) both fine and imprisonment

    and, in default of payment of a fine imposed under paragraph (a) or (c), to imprisonment for a term not exceeding twelve months in addition to the imprisonment, if any, imposed under paragraph (b) or (c).

  • Marginal note:Forfeiture

    (3) All spirits referred to in subsection (1) wherever they are found, and all horses and vehicles, vessels and other appliances that have been or are being used for the purpose of transporting the spirits so manufactured, imported, removed, disposed of, diverted, or in or on which the spirits are found, shall be forfeited to the Crown, and may be seized and detained by any officer and be dealt with accordingly.

  • R.S., 1985, c. E-14, s. 163
  • 1989, c. 22, s. 11
 
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