Becoming a Vaping Prescribed Person

Excise Duty Notice EDN81

July 2022

The purpose of this notice is to provide information about the application process to become a vaping prescribed person in order to import stamped packaged vaping products into the Canadian duty-paid market, under the Excise Act, 2001. Persons that are not manufacturing vaping products in Canada and that intend to purchase vaping excise stamps and import vaping products should carefully review the information in this notice.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. In addition, all references to the Regulations are to the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations. The information in this publication does not replace the law found in the Act and its regulations.

All references to a vaping prescribed person are to a prescribed person that is importing vaping products and purchasing vaping excise stamps, the purpose of which is to indicate that vaping duty has been paid on the vaping products.

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.

Table of Contents


The Canada Revenue Agency (CRA) is responsible for administering and enforcing the excise duty framework for vaping products included in the Act and related regulations. The framework imposes excise duties that generally apply to vaping products manufactured in Canada or imported into Canada and intended for the duty-paid market. The duty applies to vaping products whether or not they contain nicotine.

Requirement to be a vaping prescribed person

In general, in order to import vaping products into the duty-paid market, one must apply to become a vaping prescribed person to obtain vaping excise stamps.

Who is required to apply

Every person that intends to import packaged vaping products to be released under the Customs Act for entry into the duty-paid market must apply to become a vaping prescribed person to obtain vaping excise stamps by following the process explained in the “Application process” section of this notice.

Packaged vaping products must be stamped with a vaping excise stamp prior to importation into Canada. If an imported vaping product intended for the duty-paid market is not stamped prior to importation, it shall be placed in a sufferance warehouse for the purpose of being stamped. For more information about vaping excise stamps and the stamping regime, refer to Excise Duty Notice EDN80, Overview of Vaping Excise Stamps.

Who is not required to apply

An application to be a vaping prescribed person is not required when a person is manufacturing vaping products in Canada and importing packaged vaping products. In order to carry on both of these activities, a person must apply for a vaping product licence. For additional information, refer to Excise Duty Notice EDN79, Obtaining and Renewing a Vaping Product Licence.

Under paragraph 158.47(2)(c) of the Act and subsection 5.1(1) of the Regulations, if a person is importing vaping products for personal use in quantities not in excess of the prescribed limit of five units, they do not need to apply to be a vaping prescribed person. Personal use means the use of the good by the individual or by others at the individual’s expense. It does not include the sale or other commercial use of the good.

Eligibility requirements

Under the Regulations, a person may be eligible to become a vaping prescribed person to obtain vaping excise stamps if the person:

All individuals applying to be, or as part of a partnership or unincorporated body that is applying to be, a vaping prescribed person under the Act must be at least 18 years of age.

A person must demonstrate that they have sufficient financial resources to conduct their business in a responsible manner.

Application process

Every person that intends to apply to be a vaping prescribed person, must complete Form L603, Vaping Prescribed Person Application, and submit it to their regional excise office.

Mandatory documents

In addition to Form L603, the following documents must also accompany the application:

To identify additional individuals, partners, directors, officers or shareholders involved in the business, Form L600-B, Schedule B – Information Relating to Individuals, Partners, Directors, Officers or Shareholders, must also be completed and submitted.

All forms and accompanying documents must be submitted to the applicant’s regional excise office with Form L603.

There are no fees related to the application to become a vaping prescribed person.

Registration for vaping stamping regime

A person that wishes to purchase, and possess excise stamps that will be applied to packaged vaping products for importation into the duty-paid market, must apply to be a vaping prescribed person and must also register under the vaping excise stamping regime by completing and submitting Form L601. For more information, refer to Excise Duty Notice EDN80.

Under subsection 158.36(1), on application, the CRA may issue vaping excise stamps to a vaping prescribed person. The purpose of the vaping excise stamp is to indicate that vaping duty is paid on the vaping product and that the vaping product is destined for the duty-paid market.

Financial security requirements

Under subsection 158.36(3), financial security must be provided before the issuance of excise stamps to a vaping prescribed person. The amount is determined in accordance with the Regulations and in a form and amount acceptable to the CRA.

The financial security must be provided, in Canadian funds, in the form of a bank draft, certified cheque, surety bonds issued by an approved entity, or a Canada Post money order. If the applicant provides the financial security by means of a surety bond, Form L604, Surety Bond for Vaping – Prescribed Person, may be submitted with the application package.

Calculating financial security

The amount of financial security to be provided by a vaping prescribed person for excise stamps is determined in subsection 4.11(1) of the Regulations. The amount is calculated as the greater of:

The maximum security to be posted is $5 million.

Vaping excise stamps considered to be in the possession of a person includes stamps:

For assistance in determining the correct amount of financial security to be provided to the CRA, the applicant may contact their regional excise office.


A new vaping prescribed person applicant expects to import approximately 12,000 containers of vaping liquid, each containing 60 mL, and 29,000 packages, each containing 4 separate pods of 2 mL of vaping liquid, per month. The applicant has provided a projection for 12 months and the figures are consistent month to month.

The applicant has indicated in their business plan that they wish to obtain stamps for three months of inventory in order to account for the production time at the facility outside of Canada and for the time that the products are in transit.

The financial security requirement is calculated as follows:

  • The total number of packages per month is 41,000 (12,000 containers + 29,000 packages of pods).
  • The applicant requested stamps for three months of inventory, meaning that a total of 123,000 stamps will be issued (41,000 packages × 3 months) at a value of $1 per stamp.

The applicant must provide a minimum financial security in the amount of $123,000.

Maintaining financial security

With respect to excise stamps, failure to maintain sufficient financial security will result in the denial by the CRA of requests for the issuance of additional stamps until sufficient security is posted.

Increase in financial security required

If the CRA has reviewed the financial security requirements and advises the vaping prescribed person that increased security is required, the additional security amount must be posted without delay and before additional stamps are issued.


An authorized person must sign the completed Form L603. If the applicant is a corporation or an association, or an organization that has duly elected or appointed officers, the authorized person is the president, vice-president, secretary or treasurer (or other equivalent officer). If the applicant is a sole proprietorship or partnership, the proprietor or a partner, respectively, must sign the application.

Authorized representative

A vaping prescribed person may wish to authorize an individual (such as an accountant, a lawyer or an employee) or a firm as their representative related to their excise duty program account.

To authorize a representative to discuss their excise duty program account, the vaping prescribed person may use the “Authorize a representative” service in My Business Account.

A representative that wishes to request online access to a vaping prescribed person’s account information must follow the electronic authorization process under Represent a Client.

Email notification

A vaping prescribed person may provide their email address on Form L603 if they would like to register to receive any CRA mail online.

To view CRA mail online, the vaping prescribed person must be registered through My Business Account.

If the vaping prescribed person has a representative, then the representative must be registered under Represent a Client and be authorized on the prescribed person’s account.

All CRA mail available in My Business Account will be considered to have been received on the date that the email notification is sent. Any mail that is eligible for electronic delivery will no longer be printed and mailed.

Effect and duration

Once a decision is made to issue a vaping prescribed person registration, the regional excise office will issue a vaping prescribed person approval letter. The letter specifies:

A person becomes a vaping prescribed person effective from the date indicated on the approval letter and the approval remains in effect until the person either requests to cancel the registration or no longer meets the eligibility requirements outlined above.

Responsibilities of a vaping prescribed person

Vaping prescribed persons are responsible for all vaping excise stamps issued to them and may be liable to a penalty for any stamps that are unaccounted for.

It is the responsibility of the vaping prescribed person to remit all duties on imported vaping products to the Canada Border Services Agency at the time of importation.

Under section 4.01 of the Regulations, vaping prescribed persons must fill out Form B601, Vaping Information Return – Prescribed Person, for each calendar month, with respect to the possession and use of any vaping excise stamps issued to them.

All documents relating to stamp usage must be kept for at least six years after the end of the year to which they relate.

Notification of changes

A vaping prescribed person must notify their regional excise office, in writing, of any changes to their information without delay. Such changes may include: 

Change of legal entity

Where a change of legal entity occurs (for example, a proprietorship incorporates or a corporation merges with another corporation), the existing vaping prescribed person account will be cancelled.

The new legal entity will have to apply to become a new vaping prescribed person by completing Form L603 and submitting it to their regional excise office. A copy of the new or revised certificate of incorporation or the certificate of amalgamation, along with a replacement form of financial security, must be submitted with the form. 

When an application is not approved

An application will not be approved if the applicant does not meet the eligibility requirements described in this notice. The decision to approve an application to become a vaping prescribed person rests with the CRA.

Further information

For all technical publications related to the Excise Act, 2001 and its regulations, go to Excise duties technical information under the Excise Act, 2001.

To inquire about the excise duty vaping prescribed person application process, contact your regional excise office. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.

For all enquiries on the application of excise duty to vaping products, call 1‑866‑330‑3304 or send an email to

To request a ruling or interpretation related to the application of excise duty to vaping products, write to:

Excise Duty Division
Excise and Specialty Tax Directorate
Canada Revenue Agency
Place de Ville Tower A 11th fl
320 Queen St
Ottawa ON  K1A 0L5

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