Dear XXXXX:
Thank you for your recent letter, received by fax XXXXX, concerning the XXXXX plan to import XXXXX cartons of XXXXX brand cigarettes from XXXXX. You have asked that, for this one importation, the Canada Customs and Revenue Agency (CCRA) waive the duty-paid stamping requirements, since XXXXX plans to use these cigarettes for XXXXX research. I understand a similar request to XXXXX was made and granted.
I noted that you did not request a waiver from the excise tax payable under subsections 23(1) and (2) of the Excise Tax Act, nor from the additional duty equivalent to excise levied under subsection 21(1) of the Customs Tariff. It is our understanding that XXXXX intends to pay the regular duties and taxes.
Under the provisions of subsections 201(2) and (3) of the Excise Act, and sections 11 and 12 of the Tobacco Ministerial Regulations, importations of tobacco products, except personal importations of five units (cartons for cigarettes) or fewer, are subject to the regular duty-paid stamping provisions. As noted by Mr. Steve Mosher of the CCRA to XXXXX, the duty-paid stamping provisions apply to packages, cartons, and shipping containers of Canadian-manufactured and imported cigarettes, and not individual cigarettes. There are no exemption provisions from the duty paid stamping provisions for tobacco products imported for research or other non-personal use. In fact, similar importations by Canadian tobacco manufacturers for research purposes are also subject to the stamping provisions.
Based on the above, I regret that there is no legislative authority to grant such a waiver. Therefore, the proposed importation must conform to the duty-paid stamping provisions set out in Circular ED 209-1 and the October 1, 2001 amendments to the Tobacco Ministerial Regulations.
The XXXXX manufacturer will likely not stamp the packages, cartons, and shipping case prior to export to Canada. Therefore, the stamping procedure will probably have to be carried out in a customs sufferance warehouse by your department or its agent (customs broker), prior to the shipment's release from Customs control.
Since the XXXXX intends to waive its normal marking requirements, the "Canada Duty Paid" stamps will have to take the form of individual package stamps made with adhesive backing, and set in a manner to seal each package and carton. Since the packages will not be repackaged in cartons for purposes of resale, the carton stamps will not be required. The cardboard shipping case can be impressed with a rubber ink stamp or be affixed by an adhesive-backed stamp as prescribed by the amendments to the Tobacco Ministerial Regulations.
For your information, enclosed is a copy of the regular stamping and marking booklet, along with the addendum sheets that set out the current federal stamping requirements for cigarettes in situations where provincial tobacco tax marking does not apply. It should be noted that the stamps themselves are not issued by the CCRA, and have to be prepared by a commercial printer of your choosing.
Should you require further information or have any questions with respect to this matter, please do not hesitate to contact me at (613) 954-0111 or Steve Mosher at (613) 941-1497.
Phil McLester
Director
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
Attachments
XXXXX
Email this Content