Excise Licences and Registrations, Regulations Respecting

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2003-115/FullText.html

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Regulations Respecting Excise Licences and Registrations

SOR/2003-115EXCISE ACT, 2001
Registration 2003-03-27
Regulations Respecting Excise Licences and Registrations
P.C. 2003-389 2003-03-27Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 304(1) of the Excise Act, 2001Footnote a, hereby makes the annexed Regulations Respecting Excise Licences and Registrations.
Return to footnote aS.C. 2002, c. 22Interpretation

1 The following definitions apply in these Regulations.

Act
Act means the Excise Act, 2001. (Loi)
licence
licence means a licence issued under section 14, 19, 20 or 22 of the Act. (licence)
registration
registration means a registration issued under any of sections 15 to 18 of the Act. (autorisation)

Issuance of Licence

2 (1) In order to be issued a licence, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made.

(2) Subject to subsections (3) and (4), an applicant is eligible for a licence, other than a licence issued under section 22 of the Act, if

(a) they are not the subject of a receivership in respect of their debts;

(b) they have not, in the five years immediately before the date of the application,

(i) failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products or any regulations made under it, or
(ii) acted to defraud Her Majesty;

(c) in the case of an applicant who is an individual, they

(i) are at least eighteen years of age, and
(ii) have sufficient financial resources to conduct their business in a responsible manner;

(d) in the case of an applicant that is a partnership or unincorporated body,

(i) where the partnership or unincorporated body is composed only of individuals, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body meets the requirement of subparagraph (c)(ii),
(ii) where the partnership or unincorporated body is composed only of corporations, each of the corporations meets the requirement of subparagraph (c)(ii), and
(iii) where the partnership or unincorporated body is composed of both individuals and corporations, each of the individuals meets the requirement of subparagraph (c)(i) and the partnership or unincorporated body and each of the corporations meet the requirement of subparagraph (c)(ii); and

(e) in the case of an applicant that is a corporation, the corporation meets the requirement of subparagraph (c)(ii).

(3) Subject to subsection (4), an applicant for a licence issued under section 19 of the Act authorizing them to possess in their excise warehouse non-duty-paid packaged alcohol must, in addition to meeting the requirements of subsection (2), where the province in which the warehouse is located has enacted legislation respecting the warehousing of packaged alcohol, be authorized by that province or its liquor authority to warehouse the alcohol at that warehouse.
(4) The additional requirement referred to in subsection (3) does not apply to an applicant who is an alcohol licensee that is producing or packaging alcohol in the province where the warehouse is located.
(5) [Repealed, SOR/2005-355, s. 1]

SOR/2005-355, s. 1.

Issuance of Registration

3 (1) In order to be issued a registration, a person must submit to the Minister a completed application, in the form authorized by the Minister, accompanied by a list of the premises in respect of which the application is being made.

(2) An applicant is eligible for a registration if

(a) they are not the subject of a receivership in respect of their debts; and

(b) they have not, in the five years immediately before the date of the application,

(i) failed to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products or any regulations made under it, or
(ii) acted to defraud Her Majesty.

Duration of Licence

4 A licence is valid for the period specified in the licence, which period shall not exceed two years.

Security

5 (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence or a tobacco licence is an amount of not less than $5,000 and

(a) in the case of a spirits licence, be sufficient to ensure payment of all amounts in respect of bulk spirits referred to in sections 104 to 112 of the Act for which the licensee is or will be responsible up to a maximum amount of $2 million; and
(b) in the case of a tobacco licence, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(1)(b) of the Act up to a maximum amount of $2 million.

(2) The types of security that are acceptable for the purposes of paragraph 23(3)(b) of the Act are

(a) cash;
(b) a certified cheque;
(c) a transferable bond issued by the Government of Canada; or

(d) a bond issued by

(i) an entity that is licensed or otherwise authorized under the laws of Canada or of a province to carry on the fidelity or surety class of insurance business in Canada and that is recommended to the Treasury Board by the Office of the Superintendent of Financial Institutions as an entity whose bonds may be accepted by the Government of Canada,
(ii) a member of the Canadian Payments Association referred to in section 4 of the Canadian Payments Act,
(iii) a corporation that accepts deposits insured by the Canada Deposit Insurance Corporation or the Régie de l’assurance-dépôts du Québec to the maximum permitted by the statutes under which those institutions were established,
(iv) a credit union as defined in subsection 137(6) of the Income Tax Act, or
(v) a corporation that accepts deposits from the public, if repayment of the deposits is guaranteed by Her Majesty in right of a province.

Notification of Changes

6 Every licensee and registrant shall, without delay, notify the Minister in writing of any changes to any of the information provided under these Regulations.

7 Every licensee shall, without delay, notify the Minister in writing of any changes to the licensee’s fiscal months.

Amendment of Licence or Registration

8 The Minister shall amend a licence or registration if the Minister receives a notification pursuant to section 6 that necessitates the amendment.

Renewal of Licence

9 (1) In order to have a licence renewed, a licensee must submit to the Minister a completed renewal application, in the form authorized by the Minister, not less than thirty days before the day on which the licence expires.
(2) A licensee is eligible to have a licence renewed if they have not ceased to meet the applicable requirements of section 2.

Suspension of Licence or Registration

10 (1) The grounds for the suspension of a licence or registration by the Minister are that the licensee or registrant fails to meet

(a) any of the applicable requirements of section 6, 7 or 13; or
(b) the conditions of the licence or registration.

(2) The Minister shall, immediately after suspending a licence or registration, notify the licensee or registrant in writing of the suspension and provide all relevant information concerning the grounds for the suspension.
(3) The licensee or registrant may, within 90 days after the day on which the licence or registration is suspended, make representations to the Minister respecting the reasons why the licence or registration should be reinstated.

11 The Minister shall reinstate a suspended licence or registration when the grounds for the suspension cease to exist.
SOR/2005-355, s. 2(E).

Cancellation of Licence or Registration

12 (1) The grounds for the cancellation of a licence or registration by the Minister are that the licensee or registrant

(a) requests the Minister in writing to cancel the licence or registration;
(b) is bankrupt;
(c) ceases to meet the applicable requirements of section 2 or 3, as the case may be;
(d) ceases to carry on the business for which the licence or registration was issued;
(e) fails to comply with any Act of Parliament, other than the Act, or of the legislature of a province respecting the taxation of or controls on alcohol or tobacco products, or any regulations made under it; or
(f) acts to defraud Her Majesty.

(2) The Minister shall, before cancelling a licence or registration on any of the grounds referred to in paragraphs (1)(b) to (f), give the licensee or registrant 90 days notice of the proposed cancellation and provide them with all relevant information concerning those grounds.
(3) The licensee or registrant may, within 90 days after the day on which the notice referred to in subsection (2) is given, make representations to the Minister respecting the reasons why the licence or registration should not be cancelled.

Facilities, Equipment and Personnel

13 Every licensee and registrant shall provide, at the premises in respect of which the licence or registration is issued,

(a) adequate space for the examination of goods or records by an officer;
(b) the equipment and personnel necessary to ensure that the goods or records to be examined are made available to the officer; and
(c) the personnel necessary to furnish information, for audit purposes, to an officer with respect to the operations, inventory system and records system of the licensee or registrant.

Coming into Force

14 These Regulations take effect on April 1, 2003.