Completing an Excise Duty Return – Excise Warehouse Licensee

Excise Duty Memorandum EDM10-1-3

February 2023

This version replaces the one dated July 2022. This memorandum was revised to make the information more helpful and easier to understand.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.

General

As an excise warehouse licensee, you must file Form B262, Excise Duty Return – Excise Warehouse Licensee, and, if applicable, pay excise duty for each reporting period. For information on the responsibilities and requirements related to warehousing, refer to Excise Duty Memorandum EDM8-1-1, Excise Warehouses.

You must report inventories of packaged alcohol, unstamped manufactured tobacco, unstamped cigars and unstamped packaged vaping products in your possession and on which excise duty has not been paid, regardless of who owns them. Do not report inventories of packaged exempt wine.

When completing Form B262, include only the information that applies to the reporting period for which you are filing and complete only the lines of the return that apply to you. Dollar amounts should be rounded to the nearest cent.

Filing your return

You can file your return either:

• electronically using the “File a return” function in My Business Account
• by mail at:

Canada Revenue Agency
Prince Edward Island Tax Centre
275 Pope Rd
Summerside PE  C1N 6E7

Instructions for page 1

Identification box

Enter the complete legal name and mailing address of your business.

Box 1 – Account number

Enter your 9-digit business number (BN) and 4-digit program account number.

Box 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Box 3 – Due date (YYYY-MM-DD)

Enter the due date for this return. The due date is the last day of the month following the reporting period entered in box 2. When the due date falls on a Saturday, a Sunday or a public holiday, recognized by the Canada Revenue Agency (CRA), your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day.

Line 4 – Spirits containing more than 7%

Spirits containing more than 7% absolute ethyl alcohol by volume must be reported in litres of absolute ethyl alcohol. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of absolute ethyl alcohol in spirits containing more than 7% absolute ethyl alcohol by volume that were removed for entry into the duty-paid market.

To calculate the amount of excise duty payable, multiply the quantity of spirits you entered by the effective rate of excise duty for spirits containing more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 5 – Spirits containing not more than 7%

Spirits containing not more than 7% absolute ethyl alcohol by volume must be reported in litres of spirits. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of spirits containing not more than 7% absolute ethyl alcohol by volume that were removed for entry into the duty-paid market. 

To calculate the amount of excise duty payable, multiply the quantity of spirits you entered by the effective rate of excise duty for spirits containing not more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 6 – Imported spirits delivered to licensed users

Imported spirits delivered to licensed users must be reported in litres of absolute ethyl alcohol. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of absolute ethyl alcohol in imported spirits that were removed for delivery to licensed users.

To calculate the amount of special duty payable, multiply the quantity of spirits you entered by the effective rate of special duty for spirits delivered to or imported by a licensed user, and enter the result under “Duty payable”.

Line 7 – Wine containing more than 7%

Wine containing more than 7% absolute ethyl alcohol by volume must be reported in litres of wine. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of wine containing more than 7% absolute ethyl alcohol by volume that were removed for entry into the duty-paid market.

To calculate the amount of excise duty payable on this quantity, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 8 – Wine containing more than 1.2%, but not more than 7%

Wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume must be reported in litres of wine. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume that were removed for entry into the duty-paid market.

To calculate the amount of excise duty payable, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 9 – Wine containing not more than 1.2%

Wine containing not more than 1.2% absolute ethyl alcohol by volume must be reported in litres of wine. In the “Quantity (Litres of absolute ethyl alcohol/Litres)” column, enter the total litres of wine containing not more than 1.2% absolute ethyl alcohol by volume that were removed for entry into the duty-paid market.

To calculate the amount of excise duty payable, multiply the quantity of wine you entered by the effective rate of excise duty for wine containing not more than 1.2% absolute ethyl alcohol by volume, and enter the result under “Duty payable”.

Line 10 – Total (line 4 to line 9)

Add the amounts from lines 4 to 9 of the “Duty payable” column and enter the total.

Line 11 – Refunds (B256 attached)

Enter the total refund claimed on line 11 only if you are attaching Form B256, Excise Act, 2001 – Application for Refund..

You may reduce the excise duty payable for the current reporting period by the amount of the refund claimed on Form B256, provided that form is attached to this return.

If you have filed a separate refund claim, do not record the amount of that claim on this return.

If you expect a refund from a previous reporting period but have not yet received it, do not include that information on this return.

Line 12 – Net payable (line 10 minus line 11)

Subtract the amount on line 11 from the amount on line 10. Enter the result on line 12.

Line 13 – Amount due

Enter the amount from line 12.

Line 14 – Payment / Credit due

Enter the amount from Line 13.

If the amount is negative, a credit is due.

If the amount is positive, a payment is due. If you have not already paid it, enter this amount and make your payment online, by mail or in person at a financial institution. If you have already paid it, enter “0”.

Certification

Enter the name, title and telephone number of an authorized representative. The authorized representative must sign and date the return.

Instructions for page 2

Where necessary, enter in the appropriate box any changes related to your licence:

• name of licensee
• mailing address
• address for books and records
• contact name and title
• telephone number
• language of future correspondence
• the effective date of the above changes
• the date when the business closed and the reason for closure

Additional material required

Check any of the applicable boxes if you require additional:

• remittance vouchers
• pre-addressed return envelopes
• remittance envelopes

Instructions for page 3

Identification box

Enter the complete legal name of your business.

Box 1 – Account number

Enter your 9-digit BN and 4-digit program account number.

Box 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Inventory table for spirits

The inventory of spirits is reported in:

• litres of absolute ethyl alcohol, in the case of spirits containing more than 7% absolute ethyl alcohol by volume
• litres of spirits, in the case of spirits containing not more than 7% absolute ethyl alcohol by volume

Line A – Opening inventory

For each column, enter the total opening quantity of spirits. The opening inventories of spirits on line A of this return must equal the closing inventories of spirits on line G of the previous return.

Additions to inventory

Domestic non-duty-paid packaged
For each column, enter the total quantity of domestic non-duty-paid packaged spirits entered into the excise warehouse.

Imported non-duty-paid packaged
For each column, enter the total quantity of imported non-duty-paid packaged spirits entered into the excise warehouse.

Returned from duty-paid sources
For each column, enter the total quantity of packaged spirits entered into the excise warehouse as returned from duty-paid sources.

Returned from non-duty-paid sources
For each column, enter the total quantity of packaged spirits entered into the excise warehouse as returned from non-duty-paid sources.

Line B – Total additions

For each column, add the quantities of packaged spirits added to your inventory and enter the total on line B.

Reductions to inventory: non-duty-paid

Removed for delivery to registered users
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for delivery to registered users.

Removed for delivery to accredited representatives
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for delivery to accredited representatives.

Removed for delivery to duty free shops
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for delivery to duty free shops.

Removed for delivery as ships’ stores
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for delivery as ships’ stores.

Removed for delivery to licensed users – Domestic
For each column, enter the total quantity of domestic non-duty-paid packaged spirits removed from the excise warehouse for delivery to licensed users.

Removed for delivery to licensed users – Imported
For each column, enter the total quantity of imported non-duty-paid packaged spirits removed from the excise warehouse for delivery to licensed users.

Removed for delivery to other excise warehouses
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for delivery to other excise warehouses.

Exported spirits
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for export.

Returned to Spirits Licensee
For each column, enter the total quantity of non-duty-paid packaged spirits returned to the spirits licensee (in other words, the excise warehouse licensee returns non-duty-paid packaged spirits from their excise warehouse to bulk spirits inventory under their spirits licence).

Breakage
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse due to breakage.

Spirits removed for other purposes (specify)
For each column, enter the total quantity of non-duty-paid packaged spirits removed from the excise warehouse for other purposes and specify the purpose for removal (for example, spirits removed from the excise warehouse for analysis or destruction by the CRA or by the licensee in a manner approved by the CRA).

Line C – Total non-duty-paid reductions

For each column, add the quantities of non-duty-paid packaged spirits removed from your inventory and enter the total on line C.

Reductions to inventory: duty-paid

Packaged (excluding marked special containers)
For each column, enter the total quantity of packaged spirits, other than spirits packaged in marked special containers, removed from the excise warehouse duty-paid and entered into the duty-paid market.

Packaged in marked special containers
For each column, enter the total quantity of spirits packaged in marked special containers removed from the excise warehouse duty-paid and entered into the duty-paid market (in other words, for delivery to a bottle-your-own premises).

Spirits removed for other purposes (specify)
For each column, enter the total quantity of packaged spirits removed from the excise warehouse duty-paid for other purposes and specify the purpose for removal (for example, spirits unaccounted for, spirits removed from the excise warehouse for analysis or destruction without CRA approval, spirits consumed or spirits used to produce a product other than spirits).

Line D – Total duty-paid reductions

For each column, add the quantities of duty-paid packaged spirits removed from your inventory and enter the total on line D.

Line E – Total reductions (C + D)

For each column, add the results from lines C and D and enter the total on line E.

Line F – Inventory adjustments (+ or −)

For each column, enter the necessary inventory adjustment. Adjustments may be necessary to balance the physical inventory with the book inventory. The closing inventory in your books must match the closing physical inventory for the reporting period.

Line G – Closing inventory (A + B) − E ± F

For each column, add the quantity on line A and the total on line B, subtract the total on line E, add or subtract the inventory adjustment on line F, and enter the result on line G. This closing inventory is the opening inventory for the following reporting period.

Instructions for page 4

Identification box

Enter the complete legal name of your business.

Box 1 – Account number

Enter your 9-digit BN and 4-digit program account number.

Box 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Inventory table for wine

The inventory of wine is reported in litres of wine for each of the following:

• wine containing more than 7% absolute ethyl alcohol by volume
• wine containing more than 1.2% but not more than 7% absolute ethyl alcohol by volume
• wine containing not more than 1.2% absolute ethyl alcohol by volume

Line A – Opening inventory

For each column, enter the total opening quantity of wine. The opening inventories of wine on line A of this return must equal the closing inventories of wine on line G of the previous return. 

Additions to inventory

Domestic wine
For each column, enter the total quantity of domestic non-duty-paid packaged wine entered into the excise warehouse.

Imported wine
For each column, enter the total quantity of imported non-duty-paid packaged wine entered into the excise warehouse.

Returned from duty-paid sources
For each column, enter the total quantity of packaged wine entered into the excise warehouse as returned from duty-paid sources.

Returned from non-duty-paid sources
For each column, enter the total quantity of packaged wine entered into the excise warehouse as returned from non-duty-paid sources.

Line B – Total additions

For each column, add the quantities of packaged wine added to your inventory and enter the total on line B.

Reductions to inventory: non-duty-paid

Removed for delivery to accredited representatives
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for delivery to accredited representatives.

Removed for delivery to duty free shops
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for delivery to duty free shops.

Removed for delivery as ships’ stores
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for delivery as ships’ stores.

Removed for delivery to licensed users
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for delivery to licensed users.

Removed for delivery to other excise warehouses
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for delivery to other excise warehouses.

Exported wine
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for export.

Returned to wine licensee
For each column, enter the total quantity of non-duty-paid packaged wine returned to the wine licensee (in other words, the excise warehouse licensee has returned non-duty-paid packaged wine from their excise warehouse to bulk wine inventory under their wine licence).

Breakage
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse due to breakage.

Wine removed for other purposes (specify)
For each column, enter the total quantity of non-duty-paid packaged wine removed from the excise warehouse for other purposes and specify the purpose for removal (for example, wine removed from the excise warehouse for analysis or destruction by the CRA or by the excise warehouse licensee in a manner approved by the CRA, or wine removed by the excise warehouse licensee that is also the wine licensee that produced or packaged the wine and provided free of charge to individuals as a sample consumed at the premises where the wine licensee produces or packages the wine). 

Line C – Total non-duty-paid reductions

For each column, add the quantities of non-duty-paid packaged wine removed from your inventory and enter the total on line C.

Reductions to inventory: duty-paid

Packaged (excluding marked special containers)
For each column, enter the total quantity of packaged wine, other than wine packaged in marked special containers, removed from the excise warehouse duty-paid and entered into the duty-paid market.

Packaged in marked special containers
For each column, enter the total quantity of wine packaged in marked special containers removed from the excise warehouse duty-paid and entered into the duty-paid market (in other words, for delivery to a bottle-your-own premises).

Wine removed for other purposes (specify)
For each column, enter the total quantity of packaged wine removed from the excise warehouse duty-paid for other purposes and specify the purpose for removal (for example, wine unaccounted for, wine removed from the excise warehouse for analysis or destruction without CRA approval, wine consumed or wine used to produce a product other than wine).

Line D – Total duty-paid reductions

For each column, add the quantities of duty-paid packaged wine removed from your inventory and enter the total on line D.

Line E – Total reductions (C + D)

For each column, add the results from lines C and D and enter the total on line E. 

Line F – Inventory adjustments (+ or −)

For each column, enter the necessary inventory adjustment. Adjustments may be necessary to balance the physical inventory with the book inventory. The closing inventory in your books must match the closing physical inventory for the reporting period. 

Line G – Closing inventory (A + B) − E ± F

For each column, add the quantity on line A and the total on line B, subtract the total on line E, add or subtract the inventory adjustment on line F, and enter the result on line G. This closing inventory is the opening inventory for the following reporting period.

Instructions for page 5

Identification box

Enter the complete legal name of your business.

Box 1 – Account number

Enter your 9-digit BN and 4-digit program account number.

Box 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Inventory table for tobacco products

Tobacco products inventory is reported in:

• units, in the case of cigarettes, tobacco sticks, manufactured tobacco (other than cigarettes and tobacco sticks) and cigars
• kilograms, in the case of partially manufactured tobacco

Line A – Opening inventory

For each column, enter the total opening quantity of tobacco products. The opening inventories of tobacco products on this return must equal the closing inventories of tobacco products on line G of the previous return. 

Additions to inventory

Domestic from tobacco licensees
For each column, enter the total quantity of tobacco products entered into the excise warehouse as received from tobacco licensees.

Domestic from other excise warehouses
For each applicable column, enter the total quantity of tobacco products entered into the excise warehouse as received from other excise warehouses.

Imported
For each column, enter the total quantity of each imported tobacco product entered into the excise warehouse, including imported tobacco products from another excise warehouse.

Line B – Total additions

For each column, add the quantities of tobacco products added to your inventory and enter the total on line B.

Reductions to inventory: domestic deliveries

To accredited representatives – Cigars and Canadian manufactured tobacco
For each applicable column, enter the total quantity of domestic cigars and Canadian manufactured tobacco products removed from the excise warehouse for delivery to accredited representatives.

To accredited representatives – Imported tobacco products
For each applicable column, enter the total quantity of imported tobacco products removed from the excise warehouse for delivery to accredited representatives.

To duty free shops – Cigars
In the “Cigars” column, enter the total quantity of domestic cigars removed from the excise warehouse for delivery to duty free shops.

To duty free shops – Imported tobacco products
For each applicable column, enter the total quantity of imported tobacco products removed from the excise warehouse for delivery to duty free shops.

As ships’ stores – Cigars
In the “Cigars” column, enter the total quantity of domestic cigars removed from the excise warehouse for delivery as ships’ stores.

As ships’ stores – Imported tobacco products
For each applicable column, enter the total quantity of imported tobacco products removed from the excise warehouse for delivery as ships’ stores.

To another excise warehouse – Cigars
In the “Cigars” column, enter the total quantity of domestic cigars removed from the excise warehouse to another excise warehouse.

To another excise warehouse – Imported tobacco products
For each applicable column, enter the total quantity of imported tobacco products removed from the excise warehouse to another excise warehouse.

Line C – Total domestic deliveries reductions

For each applicable column, add the quantities of cigars, Canadian manufactured tobacco and imported tobacco products removed from your inventory and enter the total on line C.

Reductions to inventory: export deliveries

Foreign brand tobacco
For each applicable column, enter the total quantity of foreign brand tobacco removed from the excise warehouse and destined for export.

Cigars and Canadian manufactured tobacco
For each applicable column, enter the total quantity of domestic cigars and Canadian manufactured tobacco removed from the excise warehouse and destined for export.

Canadian partially manufactured tobacco
In the “Partially manufactured tobacco” column, enter the total quantity of Canadian partially manufactured tobacco removed from the excise warehouse and destined for export.

Imported tobacco products
For each column, enter the total quantity of imported tobacco products removed from the excise warehouse for export.

Line D – Total export deliveries reductions

For each column, add the quantities of foreign brand tobacco, cigars and Canadian manufactured tobacco, Canadian partially manufactured tobacco and imported tobacco products removed from your inventory and enter the total on line D.

Line E – Total deliveries reductions (C + D)

For each column, add the results from lines C and D and enter the total on line E.

Line F – Inventory adjustments (+ or −)

For each column, enter the necessary inventory adjustment. Adjustments may be necessary to balance the physical inventory with the book inventory. The closing inventory in your books must match the closing physical inventory for the reporting period. 

Line G – Closing inventory (A + B) − E ± F

For each column, add the quantity on line A and the total on line B, subtract the total on line E, add or subtract the inventory adjustment on line F, and enter the result on line G. This closing inventory is the opening inventory for the following reporting period.

Instructions for page 6

Identification box

Enter the complete legal name of your business.

Box 1 – Account number

Enter your 9-digit BN and 4-digit program account number.

Box 2 – Period covered (YYYY-MM-DD)

Enter the start and end dates of the reporting period for which this return is being filed.

Inventory table for vaping products

Vaping products inventory is reported in number of packages.

Line A – Opening inventory

For each column, enter the total opening quantity of packages of vaping products. The opening inventories of vaping products on this return must equal the closing inventories of vaping products on line G of the previous return.

Additions to inventory

Manufactured in Canada
For each column, enter the total packages of Canadian-manufactured vaping products entered into the excise warehouse.

Imported product
For each column, enter the total packages of imported vaping products (not manufactured in Canada) entered into the excise warehouse.

Imported product from another excise warehouse
For each column, enter the total packages of imported vaping products entered into the excise warehouse from another excise warehouse.

Line B – Total additions

For each column, add the packages of vaping products added to your inventory and enter the total on line B.

Reductions to inventory: vaping products manufactured in Canada

To accredited representatives
For each column, enter the total packages of vaping products removed from the excise warehouse for delivery to accredited representatives.

Export
For each column, enter the total packages of vaping products removed from the excise warehouse for export.

Rework
For each column, enter the total packages of vaping products removed from the excise warehouse to be reworked.

Destruction
For each column, enter the total packages of vaping products removed from the excise warehouse for destruction.

Line C – Total domestic vaping products reductions

For each column, add the packages of vaping products removed from your inventory and enter the total on line C.

Reductions to inventory: imported vaping products

To accredited representatives
For each column, enter the total packages of vaping products removed from the excise warehouse for delivery to accredited representatives.

Export
For each column, enter the total packages of vaping products removed from the excise warehouse and destined for export.

Delivery to another excise warehouse
For each column, enter the total packages of vaping products removed from the excise warehouse for delivery to another excise warehouse.

Line D – Total imported vaping products reductions

For each column, add the packages of vaping products removed from your inventory and enter the total on line D.

Line E – Total deliveries reductions (C + D)

For each column, add the results from lines C and D and enter the total on line E.

Line F – Inventory adjustments (+ or −)

For each column, enter the necessary inventory adjustment. Adjustments may be necessary to balance the physical inventory of packages with the book inventory. The closing inventory in your books must match the closing physical inventory of packages for the reporting period.

Line G – Closing inventory (A + B) − E ± F

For each column, add the quantity of packages on line A and the total on line B, subtract the total on line E, add or subtract the inventory adjustment on line F, and enter the result on line G. This closing inventory of packages is the opening inventory for the following reporting period.

Further information