Dear XXXXX:
Thank you for your facsimile XXXXX informing us that XXXXX cigarette brands should be removed from the list of prescribed brands. For the record, we have received third party authorization XXXXX is not currently listed on Schedule II in the Tobacco Regulations (to the Excise Act) as a prescribed tobacco brand; but based on your prior request, had been recommended for approval for inclusion as a prescribed tobacco brand per subsection 202(4). Our letter XXXXX stated that, pending the approval of the recommended regulatory changes, XXXXX would be treated as eligible for exemption from the tobacco marking provisions that are required under subsection 202(3) for imported tobacco products.
At this time, no revisions can be made to existing regulations prior to the implementation of Excise Act, 2001. However, when that Act comes into force on July 1, 2003, the prescribed brand schedule (Schedule 10) in the Regulations Respecting the Stamping and Marking of Tobacco Products will not include XXXXX brand. We have also requested that XXXXX will not be included on that schedule.
It should be noted that prescribed tobacco brands must meet certain conditions to be exempted from the Excise Act tobacco-marking provisions of subsection 202(3). The exemption that is provided for under subsection 202(4) of the Excise Act is only applicable to brands that are prescribed and that are also not commonly sold in Canada. As mentioned in your telephone conversation with Richard Crompton XXXXX, if the brands are commonly sold in Canada, the marking exemption is not applicable, regardless of whether the brands are included in Schedule II to the Tobacco Regulations.
Should you require any further information, please contact me at (613) 954-4208 or Richard Crompton at (613) 957-4156.
Sincerely,
Preston Gallant
Manager
Excise Duty Operations
Excise Duties and Taxes Div.
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