Bill C-47

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	RECOMMENDATION
	Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act respecting the taxation of spirits, wine and tobacco and the treatment of ships' stores''.
	SUMMARY
	This enactment introduces a modern framework for the taxation of spirits, wine and tobacco. It re-enacts existing provisions in the Excise Act and the Excise Tax Act relating to the excise levies on these products, together with technical improvements, and incorporates a range of new provisions. The key features of the enactment include the following:
	(a) the continued imposition of a production levy on spirits, tobacco products and raw leaf tobacco and the replacement of the existing excise levy on sales of wine with a production levy at an equivalent rate;
	(b) the replacement of the excise duty and excise tax on tobacco products other than cigars with a single excise duty;
	(c) the introduction of excise warehouses to allow for the deferral of the payment of the production levy on domestic and imported spirits and wine to the time of sale to the retailer;
	(d) more comprehensive licensing requirements and new registration requirements for persons carrying on activities in relation to goods subject to duty;
	(e) explicit recognition of limited exemptions for certain goods produced by individuals for their personal use;
	(f) tight new controls on the possession and distribution of goods on which duty has not been paid;
	(g) modern provisions concerning the use of spirits and wine for non-beverage purposes and the use of specially denatured alcohol;
	(h) updated administrative provisions, including new remittance, assessment and appeal provisions that are similar to those under the Goods and Services Tax/Harmonized Sales Tax legislation;
	(i) updated enforcement provisions, including new offence, penalty and collection provisions; and
	(j) transitional provisions applicable to spirits, wine and tobacco products produced before the enactment comes into force.
	This enactment also implements changes to the ships' stores provisions, which were announced by the government on September 27, 2001. These changes broaden the enabling legislation for ships' stores regulations and implement a temporary fuel tax rebate program for certain ships that, as a result of amendments to the Ships' Stores Regulations effective June 1, 2002, will no longer qualify for ships' stores relief.
	Furthermore, this enactment implements the tobacco tax increases announced by the government on November 1, 2001.
	Finally, the replacement of the existing provisions in the Excise Act and the Excise Tax Act relating to the excise levies on spirits, wine and tobacco necessitates consequential amendments to those Acts as well as other Acts, including the Budget Implementation Act, 2000, the Canada Customs and Revenue Agency Act, the Criminal Code, the Customs Act, the Customs and Excise Offshore Application Act, the Customs Tariff, the Export Act, the Importation of Intoxicating Liquors Act, the Special Economic Measures Act and the Tax Court of Canada Act.