This notice provides information on new amendments made to the Excise Act, 2001 as mentioned in the 2021 Federal Budget tabled on April 19, 2021.
As made available on the Canada Revenue Agency website, amendments to excise duties on tobacco products took effect on April 20, 2021. The CBSA will collect the increased duty, paid on a voluntary basis, until the amendments become law (that is, until they receive Royal Assent).
Due to system limitations, the amended Excise Duties rates will be active in the Customs Commercial System (CCS) at a later date. This will be indicated via a new Customs Notice.
Effective April 20, 2021 importers of qualifying goods, may cite the Special Authority Code number 21-2-38 to apply the amended rates to their importations to declare the correct duties and taxes. With this Special Authority Code, importers of qualifying goods will also be able to utilize applicable Order In Council (OIC), Excise Warehouse Licenses and Permits.
To do so, importers must complete the B3-3, Canada Customs Coding Form as follows:
- a. In Field 22 “Description” enter the OIC, Excise Warehouse License or Permit number after the description of goods, should it apply to the importation;
- b. In Field 26 “Special Authority” enter Special Authority Code number 21-2-38.
The Special Authority Code noted above applies to all tobacco importations affected by the excise duties changes, including those from the United Kingdom, the Channel Islands, Gibraltar and the Isle of Man.
This notice is available in its entirety on the Canada Border Services Agency website.