ET/SL 13

July 4, 1994

Enclosed is an Application for Federal Excise Tax Credit on Tobacco Products Sold to Retailers in Prince Edward Island. You should use this form to claim credits on sales of cigarettes, tobacco sticks and manufactured tobacco you have made to retailers in Prince Edward Island on or after March 26, 1994, and before June 1, 1994. Your application should be submitted to one of the manufacturers from which you purchased these products.

If you supply tobacco products to retailers outside of Prince Edward Island, you need to determine, in making your claim, what parts of your inventories were destined for sale in Prince Edward Island. You must do so by apportioning your inventories on the basis of the proportion of your total sales of each eligible type of tobacco product (i.e. cigarettes, tobacco sticks and manufactured tobacco) in a three-month period that were made to licensed retailers in Prince Edward Island. For your March 26, inventory, you must use the three-month period ending March 25, 1994. For your June 1 inventory, you may use either the three-month period ending February 10, 1994, or the three-month period ending April 14, 1994. That proportion expressed as a percentage and multiplied by the total inventories of that type of tobacco, will give you the inventory figures for purposes of the calculations on the enclosed form. Note that if you are claiming credits in respect of tobacco products for sale in more than one province (e.g., Prince Edward Island and Nova Scotia or New Brunswick), you must choose the same three-month period for the purpose of apportioning your June 1 inventory.

For purposes of this credit, inventory refers only to Atlantic-marked inventory of cigarettes and tobacco sticks and to fine cut tobacco not marked for sale in any particular province. Tobacco products marked for specific provinces, e.g., Nova Scotia or New Brunswick, do not qualify as inventory, nor do tobacco products which have been purchased on or after April 15, 1994, at the lower rate of excise tax, for sale to retailers on Indian reserves in Nova Scotia.

Before you send your claim to your manufacturer, it must be verified by the Prince Edward Island Provincial Treasurer's Office. You can have your claim verified by sending it to the following address:

Provincial Treasurer's Office
P.O. Box 200
Charlottetown, P.E.I.
C1A 7M8

Sales of tobacco products to retailers in Prince Edward Island on or after June 1, 1994 do not qualify for this credit. All purchases since that date should be at the reduced rates applicable to the province for which the products are destined. However, you will still be eligible for a continuing rebate on cigarettes and tobacco sticks you sell to retailers in Prince Edward Island on or after June 1, 1994. This rebate should be claimed using the Application for Federal Excise Tax Rebate on Cigarettes and Tobacco Sticks Sold in Prince Edward Island, which will be sent to you under separate cover.

Further information and forms are available from the following office:

District Excise/GST Office
49 Water Street
P.O. Box 1448
Charlottetown, Prince Edward Island
C1A 7N1
Telephone: Local (902) 566-7272
Toll-free 1-800-463-6737