Vol. 132, No. 22 — October 28, 1998

Registration
SOR/98-509 8 October, 1998

EXCISE ACT

Regulations Amending the Tobacco Regulations

P.C. 1998-1804 8 October, 1998

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to sections 60(see footnote a), 127 and 202(see footnote b) of the Excise Act, hereby makes the annexed Regulations Amending the Tobacco Regulations.

REGULATIONS AMENDING THE TOBACCO REGULATIONS

AMENDMENTS

1. Schedules II(see footnote 1) and III(see footnote 2) to the Tobacco Regulations(see footnote 3) are replaced by the following:

SCHEDULE II
(Section 3.2)

BRANDS OF TOBACCO PRODUCTS

Brand
Aspen
Bronco
Canadian
Canadian Natural
Dickens and Grant
Doral
Dorchester
Excel
Gauloises Blondes
Gitanes
Gold Coast
GPC Approved
Imperial Special Blend
Islands
Kent
Lucky Strike
Magna
Marathon
Mercer
Mild Seven
Monte Carlo
Montreal Blend
River
Viceroy

SCHEDULE III
(Section 3.3)

BRANDS OF CIGARETTES

Brand
Canadian Gold
Old Port
Vantage

COMING INTO FORCE

2. These Regulations come into force on October 8, 1998.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

The Tobacco Regulations, made under the authority of the Excise Act, set out the marking requirements for tobacco products. These markings denote whether the products are destined for the domestic or export markets.

Part of these Regulations provide for the exemption from marking requirements of certain brands of tobacco products and cigarettes destined for either the export or duty free markets. These tobacco products must not be commonly sold in Canada, while there is a second exemption available to cigarettes where they are of a formulation distinct from those sold in the Canadian market under the same brand name, such as to minimize the possibility that they are subject to smuggling. These goods are also subject to the exemption criteria set out in the Act.

The amendments revise the Schedules to the Tobacco Regulations, which list the brands of tobacco products and cigarettes eligible for exemption from marking requirements, to reflect changes to sales and marketing practices relating to brands and volumes, in the tobacco industry. Several products have been removed from the lists, while only one tobacco product has been added.

Alternatives

Since it is required that tobacco products and cigarettes eligible for exemption from the marking requirements be listed in the schedules to the Tobacco Regulations, there is no alternative but to periodically revise the Regulations to reflect changes in sales and marketing practices in the industry, where new brands are created or new ratios of domestic to export sales lead to changes in eligibility for exemption.

Benefits and Costs

Benefits

The revision to the Schedules which list the tobacco products and cigarettes that are exempt from marking requirements will update those products that are presently available for exemption, for the industry and other interested parties.

Costs

No new government resources are required to implement this initiative.

Consultation

Tobacco manufacturers having products on either Schedule II, listing brands of tobacco products exempt from marking requirements, or Schedule III, listing brands of cigarettes exempt from marking requirements, were contacted to ascertain whether they had the need for any additions or subtractions to their listed products. The amended Schedules were created based upon their input and eligibility.

Compliance and Enforcement

The Excise Act provides for penalties for failure to comply with the marking requirements for tobacco products.

Contact

Bill Anderson
Project Officer
Excise Duties and Taxes Directorate
Vanier Towers, Tower C
7th Floor, 25 McArthur Road
Vanier, Ontario
K1A 0L5
Telephone: (613) 957-7593
FAX: (613) 954-2226

Footnote a

S.C. 1989, c. 22, s. 9

Footnote b

S.C. 1995, c. 41, s. 110

Footnote 1

SOR/95-466

Footnote 2

SOR/95-466

Footnote 3

C.R.C., c. 580

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