Government clarifies Bill C-19 amendment to support excise duty exemption for cider and mead 

July 14, 2022 - Ottawa, Ontario - Department of Finance Canada

Today, the Government of Canada announced clarifications relating to an amendment adopted in the House of Commons to Bill C-19 (An Act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures), which received Royal Assent on June 23, 2022.

This amendment maintains the excise duty exemption for wine produced in Canada from apples or honey (i.e., cider and mead) and composed wholly of Canadian agricultural or plant product.

However, as this amendment was adopted without consequential amendments to other portions of Bill C-19, it would result in two unintended inconsistencies if left unaddressed:

• It would make it illegal for any person to possess exempt cider and mead;
• It would remove the labelling requirements for exempt cider and mead, which may result in downstream administration and enforcement issues.

To correct these inconsistencies, the government intends to introduce legislative proposals at a future date to clarify that restrictions on possession would not apply to exempt cider and mead and that certain regulatory labeling requirements for alcoholic beverages in respect of exempt cider and mead would be preserved. It is the government’s intention that these measures be effective retroactively to June 30, 2022.