EDM3-1-4 Alcohol registrants

Excise Duty Memorandum

June 2003

Except as otherwise noted, all statutory references in this memorandum are to the provisions of the Excise Act, 2001. The information in this memorandum does not replace the law found in the Act and its regulations. If this information does not completely address your situation, refer to the Act or regulations or contact your regional excise office for additional information. The offices are listed at Contact information – Excise and Specialty Tax Directorate. 

Requirement for an alcohol registration

1. The Act imposes strict controls over the possession and distribution of bulk alcohol and specially denatured alcohol.

Meaning of alcohol (s 2)

2. Alcohol means spirits or wine.

Meaning of bulk alcohol (s 2)

3. Bulk alcohol, in relation to spirits and wine, means spirits or wine that have not been packaged.

Meaning of specially denatured alcohol (s 2)

4. Specially denatured alcohol means any prescribed grade of specially denatured alcohol made from spirits in accordance with the prescribed specification for that grade.

Meaning of packaged, mark and special container (s 2)

5. Packaged alcohol, in relation to spirits and wine, means alcohol packaged in a container of not more than 100 litres in capacity, ordinarily sold to a consumer, or in a marked special container. A marked special container must be marked in the prescribed form and manner. In respect of spirits, marked special containers are containers of more than 100 litres but not more than 1,500 litres in capacity. In respect of wine, marked special containers are containers of more than 100 litres. These topics are further discussed in Memorandum EDM3-8-1, Special containers of spirits, and Memorandum EDM4-8-1, Special containers of wine.

Alcohol registration (s 2 and 17)

6. The Act provides for the issuance of an alcohol registration, which authorizes a person to store or transport bulk alcohol or specially denatured alcohol. A person possessing an alcohol registration is called an alcohol registrant.

Possession of alcohol

Storage and transportation (para 70(2)(d) and 97(2)(e))

7. The legislation permits an alcohol registrant to possess, for purposes of storage or transportation:

• bulk alcohol, on behalf of a spirits licensee, wine licensee or a licensed user; or
• specially denatured alcohol, on behalf of a spirits licensee or specially denatured alcohol registrant.

Storage function

8. In the case of specially denatured alcohol, the storage function provided by an alcohol registrant must form an integral part of the whole transportation service, and not be a function on its own.

Responsibility for bulk spirits and wine (s 104, 113, 133 and 134)

9. Although an alcohol registrant may possess bulk spirits or bulk wine, the spirits licensee, wine licensee or licensed user who owns, last owned, produced, or imported the alcohol remains liable for the excise duty at all times.

Prohibition – Ownership of bulk alcohol (s 69)

10. A person may only own bulk alcohol that was produced or imported in accordance with the Act.

Accountability for losses (s 127 and 138)

11. The spirits licensee, wine licensee or licensed user who owns the bulk alcohol and on behalf of whom it is being transported remains accountable for any losses that may occur while the goods are in the possession of an alcohol registrant.

Obtaining an alcohol registration

12. Instructions and requirements for obtaining an alcohol registration are provided in Memorandum EDM2-4-1, Obtaining a registration.

Limitations of alcohol registrants

13. Alcohol registrants may only store and transport bulk spirits, bulk wine or specially denatured alcohol on behalf of spirits licensees, wine licensees, licensed users or specially denatured alcohol registrants. Alcohol registrants are not permitted to do anything else with the bulk alcohol or specially denatured alcohol in their possession.

Maintaining records and filing returns

Keeping records (ss 206(1))

14. Every registrant under the Act is required to maintain all records that are necessary to determine whether they are in compliance with the Act.

15. Additional information on the requirement to maintain records is available in Memorandum EDM9-1-1, General requirements for records.

Filing returns (s 161)

16. The requirement to file returns using Form B270, Excise Act 2001 – Excise Duty Return – Non-Licensee, does not apply to alcohol registrants unless they have excise duty to remit for a fiscal month.

Offences and penalties

Failure to comply

17. If an alcohol registrant fails to comply with the restrictions of their alcohol registration, they may be guilty of an offence or subject to a penalty under the Act.

18. Additional information on offences and penalties is available in Memorandum EDM1-6-1, Administrative penalties under the Excise Act, 2001.

Further information