Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and Specialty Tax Directorate
5th floor, Tower A, Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
File Reference: […]
Business Number: […]
Attention: [Client]
July 13, 2026
Dear [Client]:
Subject: Excise duty ruling
Application of the Excise Act, 2001 to the importation of bulk wine and export of non-duty-paid packaged wine
Thank you for your correspondence of June 16, 2026, requesting an excise duty ruling on the application of the Excise Act, 2001 to […] (the Company) proposed importation of bulk wine, delivery of that wine to a contract packager (CP) for packaging, entry of the non-duty-paid packaged wine into an excise warehouse, and subsequent removal of the wine for export.
All legislative references are to the Excise Act, 2001 unless otherwise specified.
STATEMENT OF FACTS
We understand the following:
1. The Company will import bulk wine into Canada under its wine licence. The bulk wine is described as a wine-based finished liquid that is classified as wine under the Customs Tariff.
2. The Company will remain the owner of the wine while it is in Canada, both before and after packaging.
3. Immediately after importation, the bulk wine will be delivered directly to CP’s facility for packaging.
4. CP will package the bulk wine into individual single-serve containers and immediately enter the packaged wine into its excise warehouse.
5. CP will store the non-duty-paid packaged wine in its excise warehouse until it is removed for direct export by a carrier appointed by the Company.
6. CP proposes to report the removal of the packaged wine on its Form B265, Excise Duty Return – Wine Licensee as a delivery to another excise warehouse licensee. The Company proposes to report the receipt and export of the packaged wine on its Form B265 and to export the packaged wine under the Company’s excise warehouse licence.
7. The non-duty-paid packaged wine will not be entered into the Company’s excise warehouse before export.
8. The Company will retain proof of export documentation.
RULING REQUESTED
You would like to know whether excise duty becomes payable if the Company imports bulk wine into Canada as a wine licensee, delivers the bulk wine directly to CP for packaging, CP packages the wine, CP enters the non-duty-paid packaged wine into its excise warehouse immediately after packaging, and the non-duty-paid packaged wine is later removed from CP’s excise warehouse for export.
You also asked whether the non-duty-paid packaged wine may be removed from CP’s excise warehouse and transported directly for export without payment of excise duty, and whether the proposed reporting treatment is correct.
Finally, you asked whether any amount of duty would be payable under the Customs Tariff when the Company imports the bulk wine into Canada.
RULING GIVEN
Based on the facts provided, we rule that excise duty does not become payable when the Company, as a wine licensee, imports the bulk wine into Canada or has the bulk wine delivered directly to CP for packaging, provided the delivery is made in accordance with the Act.
The Company will report the importation and movement of the bulk wine on Form B265 if the Company, or a person acting on the Company’s behalf, has possession of the bulk wine during transport from the border to CP. CP reports the receipt of the bulk wine on Form B265 because CP receives the bulk wine as a wine licensee for packaging. Therefore, the proposed reporting treatment for the bulk wine is correct, provided the possession and delivery requirements under the Act are met.
Excise duty is imposed when CP packages the wine in Canada. If the packaged wine were not entered into an excise warehouse immediately after packaging, the duty would be payable by the person responsible for the wine immediately before packaging. Based on the fact provided, that person would be the Company because the Company owns the wine while it is in Canada. However, the duty is not payable at that time if CP enters the packaged wine into its excise warehouse immediately after packaging. Once that occurs, CP becomes liable for the duty.
CP may remove the non-duty-paid packaged wine from its excise warehouse for export without payment of duty if CP removes the wine for export in a way that meets the requirements of the Act and its regulations. CP may use a carrier appointed by the Company to transport the wine for export, provided the carrier is authorized to possess the wine and has documentation showing that it is transporting the wine on behalf of CP as the excise warehouse licensee.
The proposed reporting treatment for the non-duty-paid packaged wine is incorrect. CP’s removal of the non-duty-paid packaged wine from its excise warehouse for export is an excise warehouse activity. CP must report that removal on Form B262, Excise Duty Return – Excise Warehouse Licensee, and must maintain sufficient records to substantiate the export. If the export is not substantiated, CP remains the party liable for the duty.
The Company does not report the receipt or export of the non-duty-paid packaged wine because the wine will not be entered into the Company’s excise warehouse before export. A carrier appointed by the Company picking up the wine from CP’s excise warehouse does not, by itself, mean that the wine has entered the Company’s excise warehouse.
If CP removes the non-duty-paid packaged wine from its excise warehouse as a delivery to another excise warehouse licensee, the wine must be entered into the receiving excise warehouse for liability to transfer. If the wine is not entered into the receiving excise warehouse, liability does not transfer and duty becomes payable. Therefore, the Company cannot report the receipt and export of the wine as an excise warehouse activities unless the wine is first entered into its excise warehouse.
The CRA cannot provide a ruling on whether any duty is payable under the Customs Tariff. Questions about tariff classification, customs duty, release, or other import requirements should be directed to the Canada Border Services Agency.
EXPLANATION
Bulk wine
Subsection 75(2) permits a wine licensee to import bulk wine. Based on the facts provided, the Company will import the bulk wine as a wine licensee. The importation of bulk wine by a wine licensee does not, by itself, make excise duty payable under the Act.
Section 72 permits a person to give possession of bulk wine to a wine licensee. Paragraph 70(2)(b) permits a wine licensee to possess bulk wine that was produced or imported by a wine licensee. Based on the facts provided, the Company will import the bulk wine as a wine licensee, CP holds a wine licence, and CP will receive the bulk wine for packaging. Therefore, CP may possess the bulk wine for packaging. The delivery of the bulk wine to CP does not, by itself, make excise duty payable.
If a person other than the Company or CP transports the bulk wine from the border to CP’s facility, that person must be authorized to possess or transport bulk alcohol under the Act. For example, paragraph 70(2)(d) permits an alcohol registrant to possess bulk alcohol for storage or transportation if the bulk alcohol was produced by an alcohol licensee or imported by an alcohol licensee or licensed user.
Section 113 provides that the person responsible for bulk wine is the wine licensee or licensed user who owns the wine at that time, subject to the listed exceptions. Since the Company will remain the owner of the bulk wine while it is in Canada, the Company remains responsible for the bulk wine before CP packages it.
The Company will report the importation and movement of the bulk wine on Form B265 if the Company, or a person acting on the Company’s behalf, has possession of the bulk wine during transport from the border to CP. CP reports the receipt of the bulk wine on Form B265 because CP receives the bulk wine as a wine licensee for packaging.
Packaged wine
Subsection 135(1) imposes duty on wine that is packaged in Canada. Under subsection 135(3), the duty is imposed and payable when the wine is packaged unless the wine is entered into an excise warehouse immediately after packaging.
Excise Duty Notice EDN103, Responsibility for excise duty on packaged alcohol removed from an excise warehouse, explains that “immediately after being packaged” means the packaged alcohol must be entered into the excise warehouse of the licensee that packaged the alcohol under its spirits or wine licence. Based on the facts provided, CP will package the wine and immediately enter the packaged wine into its excise warehouse. Therefore, the duty imposed at packaging is not payable at that time.
Section 140 provides that if non-duty-paid packaged alcohol is entered into an excise warehouse immediately after being packaged, the excise warehouse licensee becomes liable for the duty at the time the alcohol is entered into the warehouse. Based on the facts provided, CP becomes liable for the duty when CP enters the packaged wine into its excise warehouse.
Removal from CP’s excise warehouse for export
Subparagraph 151(2)(a)(ix) allows non-duty-paid packaged alcohol, other than alcohol in a marked special container, to be removed from an excise warehouse for export, subject to the regulations.
Paragraph 147(1)(b) provides that duty is not payable on non-duty-paid packaged alcohol, other than alcohol contained in a marked special container, that is removed from an excise warehouse for export by the excise warehouse licensee in accordance with the Act.
Based on the facts provided, the allowable removal for export is the removal from CP’s excise warehouse. Duty is not payable on that removal if CP removes the non-duty-paid packaged wine for export in accordance with the Act and the regulations made under the Act.
A carrier may transport the non-duty-paid packaged wine for export if the carrier is authorized to possess and transport the wine under the regulations made under the Act and has documentation supporting that authority.
Reporting and transfer of liability
The proposed reporting treatment for the non-duty-paid packaged wine is incorrect. Based on the facts provided, the wine will be stored in CP’s excise warehouse and removed from that warehouse for export. The facts do not state that the wine will be entered into the Company’s excise warehouse before export.
Under section 2, an excise warehouse is the premises of an excise warehouse licensee that are specified by the Minister as that licensee’s excise warehouse. Therefore, liability can transfer to another excise warehouse licensee only when the non-duty-paid packaged wine is entered into the premises specified as that licensee’s excise warehouse.
Subsection 142(1) provides the mechanism for transferring liability for non-duty-paid packaged alcohol from one excise warehouse licensee to another. The transfer occurs only when the non-duty-paid packaged alcohol is entered into the receiving excise warehouse. Therefore, the Company becomes liable for the duty, and CP ceases to be liable, only if the non-duty-paid packaged wine is entered into the Company’s excise warehouse.
A carrier appointed by the Company picking up the wine from CP’s excise warehouse does not, by itself, mean that the wine has entered the Company’s excise warehouse. Therefore, the Company cannot report the receipt or export of the non-duty-paid packaged wine on Form B262.
The removal of the non-duty-paid packaged wine from CP’s excise warehouse is an excise warehouse activity. CP reports that removal on Form B262 and is responsible for maintaining sufficient records to substantiate the export. If the export is not substantiated, CP remains the party liable for the duty.
If the Company intends to report the receipt and export under the Company’s excise warehouse licence, the wine must first be entered into the Company’s excise warehouse and then can subsequently be removed for export.
Records
Section 206 requires every licensee, every person required to file a return, and every person that transports non-duty-paid packaged alcohol to keep all records necessary to determine whether they have complied with the Act. Should CP be the excise warehouse licensee removing the non-duty-paid packaged wine for export, CP must retain sufficient records to support that export. The Company and any person that transports the wine must also retain records supporting the movement.
For more information on records that may support proof of export, see Memorandum EDM9-3-1, Export documentation.
DISCLAIMER
In accordance with the qualifications and guidelines set out in Requesting an excise and specialty tax ruling or interpretation, the CRA is bound by the ruling given in this letter provided that: none of the issues discussed in the ruling are currently under audit, objection, or appeal; no future changes to the Act, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
CONTACT
If you require clarification with respect to your ruling request, please contact me directly at 519-964-3628.
Sincerely,
Meggin Green
Rulings officer
Alcohol Unit
Excise Duty Division
Excise and Specialty Tax Directorate
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