Please note that the following documents, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ces documents, bien qu'exacts au moment émis, peuvent ne pas représenter la position actuelle de l'Agence.
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February 5, 2004
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Dear XXXXX,
Thank you for your letter XXXXX requesting that brands of cigarettes, including their numerous brand extensions, be prescribed for the purposes of exemption from export markings under section 38(3) and special duty under subsection 58(1) of the Excise Act, 2001. Specifically, your request was for the following brand extensions:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
Please note that, as stated in previous correspondence with you, all requests for prescribed tobacco products or prescribed cigarette formulas, submitted after March 31, 2003, will not be granted on a "pre-approved" basis. All such prescriptions will now have to be approved by the Governor General in Council before becoming eligible for relief of the special duty and marking provisions of the Excise Act, 2001.
I also understand from your letter that, none of these brand extensions have been or are currently sold in the domestic Canadian market. Furthermore, it is not your intention to sell these brands in the Canadian market as these products will be exported and sold exclusively outside of the Canadian domestic market.
Based on the above, we agree to recommend these brand extensions to become prescribed brands for the purposes of the exemption from the special duty and marking provisions under the Excise Act, 2001. In this regard, we will recommend that the Governor General in Council approve the listed brand extensions as prescribed brands for the purposes of the next amendments to the Regulations Relieving Special Duty on Certain Tobacco Products and the Stamping and Marking of Tobacco Products Regulations.
Please note that the Unit that processes our requests for regulatory changes has indicated to us that amendments to the regulations would be processed once a year. Furthermore, these requests, conditional to approval by the Governor General in Council, may likely be in the official regulations by the fall of 2004 if submitted by January 31st.
Should any brand extensions included on the prescribed brand list be offered for sale in the Canadian duty-paid market at any time, except as provided for in subsections 38(3) and 58(1) of the Excise Act, 2001, the exemptions from the tobacco marking requirements and the payment of special duty would no longer apply. Please note that these conditions apply to the brand extensions regardless of who makes them available for sale in the Canadian duty paid market.
We are also requesting that all manufacturers submit samples of new brands to the Canada Revenue Agency's Laboratory and Scientific Services Directorate for testing. Samples should be submitted when the brand is first manufactured, and if there is a change in formulation. Please submit the samples to the Excise Laboratory Division at 79 Bentley Avenue, Ottawa, Ontario K1A 0L5.
Should you require any further information, please do not hesitate to contact me at (613) 954-4208 or Marc Rivard at (613) 957-4136.
Sincerely,
Preston Gallant, CGA
Manager
Excise Duty Operations
Excise Duties and Taxes Division
XXXXX
XXXXX
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