Excise Duty Circular

January 2025

This version replaces the one dated October 1995, which was entitled "Regulations prescribing fees for licences issued under the Excise Act". This circular has been revised to include updated information on licensing requirements. It also cancels and replaces Circulars ED200-2, Guidelines for excise duty licensing and bonding – Application and issuance of excise duty licenses; ED200-4, Guidelines for excise duty licensing and bonding – Change after issuance of licence; ED200-5, Guidelines for excise duty licensing and bonding – Alterations to premises after original application; and ED200-52, Guidelines for licensees – Signatures.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact information – Excise and Specialty Tax Directorate.

On this page

• Requirement to have a brewer's licence
  • When a brewer's licence is not required
• Applying for a brewer's licence
• Renewing a brewer's licence
• Changes to an existing brewer's licence
• Cancelling a brewer's licence
• Licensee responsibilities
• Explanation of terms used in this circular

Requirement to have a brewer's licence

1. A brewer's licence is required to manufacture beer, malt liquor, wort, or yeast.

2. The Canada Revenue Agency (CRA) differentiates manufacturers of wort and yeast from regular brewers as their products are not subject to excise duty. Although these manufacturers do not produce beer, they still require a brewer’s licence under the Act as yeast and wort are ingredients used in the production of beer. A brewer's licence for a manufacturer of wort or yeast authorizes the manufacture of wort or yeast only.

3. A licence is required for each physical business location where any manufacturing process takes place, any manufacturing apparatus or equipment suitable for producing beer is kept or used, or any products of brewing or fermentation are kept or stored.

When a brewer's licence is not required

4. For excise duty purposes, beer or malt liquor that has a final packaged alcohol strength over 11.9% is considered spirits. Producers or importers of high alcohol beer or malt liquor are considered to be producing or importing spirits and may require a spirits licence. For information on the requirements for a spirits licence, refer to Memorandum EDM3-1-1, Producers and packagers of spirits.

5. An individual who manufactures beer or malt liquor for their personal use does not need a brewer's licence.

6. A manufacturer of malt products (for example, malt vinegar) does not need a brewer's licence. However, the manufacturer must submit their malt formulations to their regional excise office for approval along with financial security in the form of a surety bond in the amount of $5,000. For more details on the financial security required for manufacturers of malt products, refer to Circular ED200-3, Financial requirement for manufacturers of beer or malt liquor, wort, yeast or malt products.

7. A brew-on-premises operation does not need a brewer's licence. However, the operator must submit their intended operations to their regional excise office. For information on the requirements related to brew-on-premises operations, refer to Circular ED212-10, Guidelines for brew on premises operations.

Applying for a brewer's licence

8. An applicant for a brewer's licence must complete the following forms for each physical business location:

• Form L1, Application for a Brewer's Licence
• Form E110, Description of Premises to Accompany Application for Licence
• Form E111, Description of Vessels and Utensils

9. The applicant must also submit:

• a floor plan with references to the areas described on Form E110 and to the equipment listed on Form E111
• a business overview that describes the business, the location, the activities to be undertaken at the brewery, the beer or malt liquor products to be manufactured, and the package sizes
• an operating plan that describes the day-to-day operations, the manufacturing processes, the point of production at which excise duty will be declared, the methods of determining the volume and alcohol content of beer, and the 24-month projections for beer production in hectolitres (1 hectolitre is equal to 100 litres) and packaging (for example, bottles, cans, or kegs)
• a sales plan that outlines the distribution channels and sales prices
• a financial plan, including the start-up costs, the sources of funding, and the 24-month financial projections
• a copy of the partnership agreement, if the applicant is a partnership
• a copy of the certificate of incorporation or amalgamation, if the applicant is a corporation

10. The applicant must sign the required forms listed in paragraph 8 and submit them to their regional excise office along with the supporting documents outlined in paragraph 9.

11. The forms and documents can be submitted either:

• electronically using "Submit documents" in My Business Account
• by mail (the addresses are listed at Contact information – Excise and Specialty Tax Directorate)

12. The applicant must provide financial security in the form of a surety bond before a licence is issued. For more information on financial security for manufacturers of beer or malt liquor, wort, or yeast, refer to Circular ED200-3.

13. If the application is approved, the CRA will issue a brewer's licence and charge a licence fee of $51.10 to the applicant.

Renewing a brewer's licence

14. A brewer's licence is valid for one year from April 1 to March 31 and is automatically renewed.

15. An annual licence fee of $51.10 is due each year by March 31 for the year beginning April 1. Notification regarding the licence fee and details on how to make the payment is provided to each licensee annually, prior to the due date. The annual licence fee is subject to change, with notice being given to licensees prior to any changes.

Changes to an existing brewer's licence

16. A licensee must notify their regional excise office of any changes to the information provided in their licence application.

17. For a change to a floor plan (for example, the addition of brewing equipment), the brewer must submit Form E110, Form E111, and a revised floor plan.

18. For a change in legal name, the brewer must submit Form L1, proof of the name change, and an original rider or endorsement to the existing surety bond.

19. For a change in physical business location, the brewer must submit Form L1, Form E110, Form E111, and a floor plan along with an original rider or endorsement to the existing surety bond.

20. For a change of ownership or legal entity (for example, where a proprietorship incorporates), the existing brewer's licence is no longer valid and a new licence application must be approved before the new entity starts brewing operations.

Cancelling a brewer's licence

21. A licensee must notify their regional excise office, in writing, when they no longer need a licence.

22. After notification of cancellation has been received, a regional excise officer will contact the licensee for details and to arrange for a closing audit or regulatory review.

23. After the closing audit or regulatory review has been completed, the CRA will provide the licensee with a letter indicating the licence has been cancelled. At this point, the person may contact the issuer of the financial security to cancel the surety bond.

24. Note that if the person has an unpaid balance associated with the cancelled licence, the CRA may withhold an amount of financial security sufficient to cover the balance of the liability.

Licensee responsibilities

25. In addition to maintaining security, paying the annual licence fee, and notifying the CRA of any changes, licensees must:

• file their returns and pay all applicable excise duties on time
• keep adequate books and records
• provide CRA excise officers with access to their premises, assistance, and a place to work for the purposes of conducting an inspection or audit

26. For additional information on the responsibilities and obligations of a licensee under the Excise Act and its regulations, go to Excise duties technical information.

Explanation of terms used in this circular

Beer or malt liquor is any product (other than wine, as defined in section 2 of the Excise Act, 2001) containing more than 0.5% absolute ethyl alcohol by volume that is a fermented liquor that is brewed in whole or in part from malt, grain, or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume.

A brew-on-premises operation is a business where individuals use equipment to manufacture beer for their personal use.

A brewer is a person that carries on a brewery, either personally or by an agent.

A brewery is any physical business location where beer is manufactured.

Person means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government, or a body that is a society, a union, a club, an association, a commission, or another organization of any kind.

The point of production is the point on the production line where the daily production is recorded (for example, at the finished beer tank or at packaging).

A surety bond is a legally binding contract entered into by three parties: a principal (that is, the brewer or manufacturer of wort, yeast, or malt products), an obligee (that is, the CRA), and a surety (that is, the bonding company that issues the surety bond).

Further information