Bill C-47

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	Responsibility for Bulk Wine
Responsibility	113. Subject to sections 114 to 116, 120 and 121, the person who is responsible for bulk wine at any time is
	(a) the wine licensee or licensed user who owns the wine at that time;
	(b) if the wine is not owned at that time by a wine licensee or licensed user, the wine licensee or licensed user who last owned it; or
	(c) if the wine was never owned by a wine licensee or licensed user, the wine licensee who imported or produced it or the licensed user who imported it.
Return of wine purchased from unlicensed person	114. (1) This section applies if a wine licensee or licensed user (in this section referred to as the ``purchaser'') purchases bulk wine from a person who is not a wine licensee or licensed user (in this section referred to as the ``unlicensed person''), and, within 30 days after the purchaser receives the wine,
	(a) the purchaser returns the wine to the wine licensee who was responsible for it immediately before it was purchased by the purchaser (in this section referred to as the ``previously responsible licensee'') or to the wine licensee who supplied it (in this section referred to as the ``supplier''); and
	(b) the ownership of the wine reverts to the unlicensed person.
Determination of person responsible for returned wine	(2) At the later of the time at which the previously responsible licensee or supplier receives the wine and the time at which the ownership of the wine reverts to the unlicensed person,
	(a) the previously responsible licensee becomes again responsible for the wine; and
	(b) the purchaser of the wine ceases to be responsible for it.
Exception - provincial ownership	115. If, at any time, the government of a province or a liquor authority that is a wine licensee or a licensed user owns bulk wine for a purpose not related to its licence, section 113 applies as though that ownership by the government or the liquor authority did not exist at that time.
Wine imported by licensed user	116. A licensed user who imports bulk wine is responsible for it.
Blended wine - joint and several or solidary responsibility	117. (1) If bulk wine is blended with other bulk wine, or if bulk wine is blended with bulk spirits and the resulting product is wine, every person who is a person responsible for any of the wine or who is a licensed user responsible for any of the bulk spirits is jointly and severally or solidarily responsible for the resulting blended wine.
Responsibility for spirits ceases	(2) The spirits licensee or licensed user who was responsible for the bulk spirits before they were blended with bulk wine as described in subsection (1) ceases to be responsible for the spirits as of the time of blending.
Person not responsible	118. A person who is responsible for bulk wine ceases to be responsible for it if it is
	(a) taken for use and the duty on it is paid;
	(b) taken for use in an approved formulation;
	(c) taken for use for a purpose described in section 145 or subsection 146(1);
	(d) exported in accordance with this Act; or
	(e) lost, if the loss is recorded in a manner authorized by the Minister.
Notification of change of ownership	119. If a wine licensee or licensed user (in this section referred to as the ``purchaser'') purchases bulk wine from a person who is not a wine licensee or licensed user, the purchaser shall, except in respect of bulk wine that is to be imported,
	(a) at the time of the purchase, obtain from the vendor the name and address of the wine licensee who is responsible for the wine immediately before it is sold to the purchaser; and
	(b) without delay, notify in writing that licensee of the purchase.
Removal of special container	120. If an unmarked special container of wine is removed by a wine licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the wine unless the wine is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.
Removal of wine	121. If wine is removed by a wine licensee from their excise warehouse in accordance with section 157, the licensee is responsible for the wine unless it is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.
	Imposition and Payment of Duty on Alcohol
Imposition - domestic spirits	122. (1) Duty is imposed on spirits produced in Canada at the rate set out in section 1 of Schedule 4.
Time of imposition	(2) The duty is imposed at the time the spirits are produced.
Imposition - low alcoholic strength spirits	123. If spirits do not contain more than 7% of absolute ethyl alcohol by volume at the time that they are packaged,
	(a) the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved; and
	(b) duty is imposed on the spirits at the rate set out in section 2 of Schedule 4.
Duty payable when packaged	124. (1) Subject to sections 126 and 127, the duty imposed on spirits is payable at the time the spirits are packaged unless, immediately after packaging, they are entered into an excise warehouse.
Payable by responsible person	(2) Duty is payable by the person who is responsible for the spirits immediately before they are packaged.
Spirits licensee ceases to be liable for duty	(3) If an excise warehouse licensee becomes liable under section 140 for duty on the spirits, the person required under subsection (2) to pay the duty ceases to be liable to pay it.
Duty payable when removed from warehouse	125. If packaged spirits are removed from an excise warehouse for entry into the duty-paid market, duty is payable on the spirits at the time of their removal and is payable by the excise warehouse licensee of the warehouse.
Duty payable on bulk spirits taken for use	126. Subject to sections 144 to 146, if bulk spirits are taken for use, duty is payable at the time the spirits are taken for use by the person who is responsible for the spirits at that time.
Duty payable on unaccounted bulk spirits	127. (1) Duty is payable by the person who is responsible for bulk spirits on any portion of the spirits that cannot be accounted for by the person as being in the possession of a spirits licensee, a licensed user or an alcohol registrant.
When duty payable	(2) The duty is payable at the time the spirits cannot be accounted for.
Exception	(3) Subsection (1) does not apply in circumstances where the person is convicted of an offence under section 218 or is liable to pay a penalty under section 241.
Duty payable on packaged spirits taken for use	128. Subject to sections 144 to 146, if non-duty-paid packaged spirits that are in the possession of an excise warehouse licensee or a licensed user are taken for use, duty is payable at the time the spirits are taken for use and is payable by the licensee or user.
Duty payable on unaccounted packaged spirits	129. (1) Duty is payable on non-duty-paid packaged spirits that have been received by an excise warehouse licensee or a licensed user but cannot be accounted for by the licensee or user
	(a) as being in the excise warehouse of the licensee or the specified premises of the user;
	(b) as having been removed, used or destroyed in accordance with this Act; or
	(c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.
When duty payable	(2) Duty is payable by the licensee or user at the time the spirits cannot be accounted for.
Fortifying wine	130. (1) A licensed user who is also a wine licensee may use bulk spirits to fortify wine to an alcoholic strength not in excess of 22.9% absolute ethyl alcohol by volume.
Duty relieved on spirits	(2) The duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were used to fortify the wine is relieved.
Blending wine with spirits	131. (1) A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.
Blending deemed to be production of spirits	(2) The resulting spirits are deemed to be produced at the time of the blending and the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved.
Duty relieved - DA and SDA	132. If a spirits licensee denatures bulk spirits into denatured alcohol or specially denatured alcohol, the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved.
Imposition of special duty	133. (1) In addition to the duty levied under section 21.1 or 21.2 of the Customs Tariff, a special duty is imposed on imported spirits delivered to or imported by a licensed user at the rate set out in Schedule 5.
Bulk spirits	(2) If a spirits licensee imports bulk spirits that are delivered to a licensed user, the special duty is payable at the time the spirits are delivered to the licensed user and is payable
	(a) by the spirits licensee who is responsible for the spirits at that time;
	(b) if the licensed user is responsible for the spirits at that time and there was a spirits licensee who was responsible immediately before that time, by that spirits licensee; or
	(c) if the licensed user is responsible for the spirits at that time and there was not a spirits licensee who was responsible immediately before that time, by the spirits licensee who delivered the spirits.
Packaged spirits	(3) If imported packaged spirits or imported spirits that have been packaged in Canada are removed from an excise warehouse for delivery to a licensed user, the special duty is payable by the excise warehouse licensee at the time the spirits are removed from the excise warehouse.
Spirits imported by licensed user	(4) If bulk or packaged spirits are imported by a licensed user, the special duty
	(a) is payable by the licensed user at the time the spirits are imported; and
	(b) shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duty were a duty levied on the spirits under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.
Imposition - bulk wine taken for use	134. (1) Duty is imposed on bulk wine that is taken for use at the rates set out in Schedule 6.
Payable by responsible person	(2) Subject to sections 144 to 146, the duty is payable at the time the wine is taken for use and is payable by the person who is responsible for the wine at that time.
Wine produced for personal use	(3) Subsection (1) does not apply to wine produced by an individual for their personal use and that is consumed in the course of that use.
Imposition - wine packaged in Canada	135. (1) Duty is imposed on wine that is packaged in Canada at the rates set out in Schedule 6.
Wine produced for personal use and by small producers	(2) Subsection (1) does not apply to wine that is
	(a) produced and packaged by an individual for their personal use; or
	(b) produced by a wine licensee and packaged by the licensee during a fiscal month of the licensee if the sales by the licensee of products subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the 12 fiscal months preceding that fiscal month did not exceed $50,000.
Time of imposition	(3) The duty is imposed at the time the wine is packaged. It is also payable at that time unless the wine is entered into an excise warehouse immediately after packaging.
Payable by responsible person	(4) The duty is payable by the person who is responsible for the wine immediately before it is packaged.
Wine licensee ceases to be liable for duty	(5) If an excise warehouse licensee becomes liable under section 140 for duty on the wine, the person required under subsection (4) to pay the duty ceases to be liable to pay it.
Duty payable on removal from warehouse	136. If packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.
Duty payable on packaged wine taken for use	137. Subject to sections 144 to 146, if non-duty-paid packaged wine that is in the possession of an excise warehouse licensee or a licensed user is taken for use, duty is payable on the wine at the time it is taken for use and is payable by the licensee or user.
Duty payable on unaccounted packaged wine	138. (1) Duty is payable on non-duty-paid packaged wine that has been received by an excise warehouse licensee or a licensed user but that cannot be accounted for by the licensee or user
	(a) as being in the excise warehouse of the licensee or the specified premises of the user;
	(b) as having been removed, used or destroyed in accordance with this Act; or
	(c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.
When duty payable	(2) Duty is payable by the licensee or user at the time the wine cannot be accounted for.
Duty on wine in marked special container relieved	139. (1) Duty imposed under subsection 135(1) is relieved on wine that is contained in a marked special container of wine from which the marking has been removed in accordance with section 156.
Duty on returned wine relieved	(2) Duty imposed under subsection 135(1) or levied under subsection 21.2(2) of the Customs Tariff is relieved on wine that is returned to the bulk wine inventory of a wine licensee in accordance with section 157.

Bill C-47

Responsibility for Bulk Wine

Imposition and Payment of Duty on Alcohol