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.
XXXXX
Thank you for your letter XXXXX concerning your XXXXX request to add to the lists of prescribed brands for the purposes of exemption from export markings under section 38(3) and special duty under subsection 58(1) of the Excise Act, 2001. Your request was for the following brand extensions:
• XXXXX
Please note that your letter XXXXX was not received by this office. Furthermore, as previously noted in my letter XXXXX and again by Mr. Phil McLester, Director, Excise Duty and Taxes Division, in his letters XXXXX, any future approvals of prescribed tobacco products or prescribed cigarette formulas, except those requested prior to 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 in the XXXXX 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. 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 we have been in discussions with the Unit that processes our requests for regulatory changes and they indicated that amendments to the regulations would be processed once a year. These requests may likely be in the official regulations by July 1, 2004 following an approval from the Governor General in Council.
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 CRA's Laboratory and Scientific Services 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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