Vol. 137, No. 13 — June 18, 2003

Registration
SOR/2003-198 5 June, 2003

IMPORTATION OF INTOXICATING LIQUORS ACT

Regulations Repealing the Defining Distilled Spirits Regulations

P.C. 2003-852 5 June, 2003

Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 3(3) (see footnote a)  of the Importation of Intoxicating Liquors Act, hereby makes the annexed Regulations Repealing the Defining Distilled Spirits Regulations.

REGULATIONS REPEALING THE DEFINING DISTILLED SPIRITS REGULATIONS

REPEAL

1. The Defining Distilled Spirits Regulations (see footnote 1)  are repealed.

COMING INTO FORCE

2. These Regulations come into force on July 1, 2003.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

The new Excise Act, 2001 received Royal Assent on June 13, 2002, thereby replacing the legislative provisions and definitions contained in the existing Excise Act, regarding the production and distribution of alcohol and tobacco products.

Subsection 3(3) of the Importation of Intoxicating Liquors Act (IILA) allows for the making of regulations to define certain expressions used in that Act. Those expressions include the term "distilled spirits". This particular term has been defined in the Defining Distilled Spirits Regulations for the purposes of paragraphs 3(2)(b.01), (b.02) and (b.1) of the IILA. These Regulations repeal the Defining Distilled Spirits Regulations, made under the IILA, which will be amended as a consequence of the coming into force of the Excise Act, 2001, to repeal subsection 3(3) — the regulation-making authority for the Defining Distilled Spirits Regulations.

The current definition of "distilled spirits" is broad and captures products that contain alcohol but that are not treated in the same manner as beverage spirits, for example, food flavourings, mouthwash, perfume, etc. The Excise Act, 2001 has changed the definition of "spirits" to provide greater technical precision to products that will incur the imposition of excise duty and that by their nature will require stricter controls.

The amendments will harmonize the terminology used in the two Acts and in so doing, will repeal the authority in the IILA to make the Defining Distilled Spirits Regulations. All the required definitions are now included in the Excise Act, 2001.

Alternatives

There is no reasonable alternative to repealing these Regulations as there will no longer be an authority to make them.

Benefits and Costs

There are no increased costs as a result of these Regulations. The Excise Act, 2001 has, in several instances, aligned terms and processes with those already existing in other statutes administered by the Canada Customs and Revenue Agency (CCRA). This should result in consistency and clarity for licence holders and less administrative burden for the CCRA.

Consultation

The CCRA and the Department of Finance carried out extensive consultations with the affected industries. Draft regulations were released in December 2001, and a Notice distributed in April 2002 to all current and potential licence and registration holders, drawing their attention to the draft regulations and asking for submissions by June 30, 2002. Personal presentations and meetings were held with industry groups expressing interest and their comments and suggestions were actively sought and taken into consideration. There were no comments received with respect to these Regulations.

Compliance and Enforcement

There are no compliance or enforcement issues related to the revocation of these Regulations.

Contact

• Mr. Mark Hartigan
  Manager, Excise Act, 2001 - Implementation
  Excise Duties and Taxes Division
  Excise and GST/HST Rulings Directorate
  Policy and Legislation Branch
  Place de Ville, 20th Floor
  320 Queen Street
  Ottawa, Ontario
  K1A 0L5
  Telephone: (613) 954-5894
  FAX: (613) 954-2226

Footnote a 

S.C. 1997, c. 14, s. 81(2)

Footnote 1 

SOR/97-338

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