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 GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 184178
[Addressee]
Dear [Client]:
Subject: EXCISE Ruling
Flavourings in Canadian Whisky
Thank you for your letter received at […] Tax Services Office on [mm/dd], 2017.
All legislative references are to the Excise Act, 2001 (Act) or its regulations unless otherwise specified.
STATEMENT OF FACTS
1. You propose to use […][X] as a flavouring in Canadian Whisky.
2. You believe that [X] would meet the standards as a flavouring for Canadian Whisky.
RULING REQUESTED
You requested a ruling on […] allowed for use as a flavouring in Canadian Whisky. You propose to use [X], and you believe that [X] could be used in the standards for Canadian Whisky.
RULING GIVEN
We are unable to provide a ruling on your request as the Canada Revenue Agency (CRA) is not responsible for the standards of composition found in the Food and Drug Regulations.
The standards of composition for alcoholic beverages are set out in Division 2 of the Food and Drug Regulations. The Food and Drug Regulations are administered under the Agriculture and Agri-Food Canada (AAFC) portfolio.
EXPLANATION
The CRA does not set the standards of composition for alcoholic beverages. The CRA’s role regarding the standards of composition is specific to determining the age and origin of whisky from the records of a Canadian producer or packager.
AAFC have designated excise duty officers of the CRA as AAFC inspectors for the purpose of issuing Certificates of Age and Origin. The Certificates of Age and Origin, issued on behalf of AAFC, are for distilled spirits produced or packaged in Canada that are destined for the export market.
As designated inspectors for AAFC, the CRA attests only to the age and origin of distilled spirits that are produced or packaged in Canada in accordance with the requirements of Division 2 of the Food and Drug Regulations, and the absolute ethyl alcohol content of spirits or wine that are added as flavouring does not exceed 9.09% of the total quantity of absolute ethyl alcohol contained in the final blended whisky.
Where flavourings are added to whisky, the age of the flavourings will not affect the age of the final blend of whisky if the absolute ethyl alcohol content of the flavourings is not more than 9.09% of the total quantity of absolute ethyl alcohol of the final blended whisky. There are no age requirements on wine; however, all other flavourings must be aged for two years in small wood.
You may contact the AAFC regarding your enquiry by telephone or in writing at:
Email: info@agr.gc.ca
Toll-free: 1-855-773-0241
Telephone: 1-613-773-1000
TDD/TTY: 1-613-773-2600
Fax: 1-613-773-1081
Mailing address:
Agriculture and Agri-Food Canada
1341 Baseline Road
Ottawa, ON K1A 0C5
If you have any questions or require any clarification on the above matter, please call me at (613) 670-7205 or Tim Krawchuk, Manager, Excise Duty Operations – Alcohol at (613) 670-7280.
Yours truly,
Ellen Hall
Senior Rulings Officer
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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