EDN89 General information – Legislative amendments with respect to vaping products
Excise Duty Notice
March 2026
This version replaces the one dated January 2024. This notice has been updated to reflect amendments to the Excise Act, 2001.
The purpose of this notice is to provide information on legislative amendments to the Excise Act, 2001 with respect to vaping products. These legislative amendments were released for consultation on August 4, 2023, and included in Bill C-59, Fall Economic Statement Implementation Act, 2023, which received royal assent on June 20, 2024.
Except as otherwise noted, all statutory references in this notice are to the provisions of the Excise Act, 2001. The information in this notice 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.
On this page
Overview
The Canada Revenue Agency (CRA) is responsible for administering and enforcing the excise duty framework for vaping products included under the Excise Act, 2001. This framework includes the imposition of excise duties that generally apply to vaping products manufactured in Canada or imported into Canada and intended for the duty-paid market. The vaping duty applies to vaping products whether or not they contain nicotine.
Vaping product licence
Prior to January 1, 2024, the Excise Act, 2001 allowed a vaping product licensee to import unstamped vaping products for further manufacturing only.
Effective January 1, 2024, paragraph 14(1)(f) allows a vaping product licensee to import packaged vaping products for stamping by the licensee in Canada. No further manufacturing is required.
Under the amended legislation, any person, including a vaping prescribed person, that intends to import vaping products into Canada for the purpose of stamping needs to apply for a vaping product licence and meet the eligibility requirements set out in the Regulations Respecting Excise Licences and Registrations. A vaping product licence issued for the sole purpose of stamping in Canada came into force on June 20, 2024, when the enacting legislation received royal assent.
For detailed information on vaping product licensing requirements, refer to Notice EDN79, Obtaining and renewing a vaping product licence.
Packaging and stamping of vaping products
Prior to January 1, 2024, section 158.46 provided that a vaping product licensee must stamp all vaping products intended for the duty-paid market at the time of packaging to indicate that the vaping duty has been paid.
Under the amended legislation, effective January 1, 2024, subsection 158.46(1) allows packaged vaping products manufactured in Canada to be stamped by the licensee that packaged the products by the end of the second calendar month following the calendar month in which the vaping products were packaged, if packaged after 2023.
Also, the addition of subsection 158.46(2) requires imported packaged vaping products to be stamped by the end of the second calendar month following the calendar month in which the products were released under the Customs Act. The imported vaping products must go directly to the vaping product licensee's facility for stamping. This applies to products imported into Canada or released (as defined in subsection 2(1) of the Customs Act) after 2023.
Unstamped products to be warehoused, exported or delivered to accredited representatives
Prior to January 1, 2024, section 158.49 provided that if vaping products manufactured in Canada were not stamped by a vaping product licensee at the time of packaging, the vaping product licensee had to immediately enter the vaping products into the licensee's excise warehouse.
Under the amended legislation, subsection 158.49(1) requires vaping products manufactured in Canada and packaged after 2023 that are not stamped by the end of the second calendar month following the calendar month in which they were packaged to be entered into the licensee's excise warehouse by that time.
Also, under the amended legislation, subsection 158.49(2) requires imported packaged vaping products that are not stamped by the end of the second calendar month following the calendar month in which they were released after 2023 under the Customs Act to be entered into the licensee's excise warehouse by that time.
Effective January 1, 2024, subsection 158.5(1.1) requires vaping product markings and other prescribed information to be printed on or affixed to the container of vaping products being removed from the premises of a vaping product licensee for export or delivery to an accredited representative. As such, vaping products may be exported or delivered to an accredited representative directly from the premises of a vaping product licensee before the end of the second calendar month following the calendar month in which they were packaged if they are properly marked.
Vaping product drugs continue to be excluded from the above stamping requirements.
For detailed information on obtaining an excise warehouse licence, refer to Notice EDN79.
Non-compliant imports
Subsections 158.51(1) and (2) provide that if an imported vaping product intended for the duty-paid market is not properly stamped at the time of importation, then the product must be placed in a sufferance warehouse for stamping.
Effective January 1, 2024, subsection 158.51(3) was amended to provide that these subsections do not apply in respect of a packaged vaping product that is imported by a vaping product licensee for stamping by the vaping product licensee.
This amendment applies in respect of vaping products imported into Canada or released (as defined in subsection 2(1) of the Customs Act) after 2023.
Imports for stamping – Delivery to premises
Effective January 1, 2024, section 158.511 was added to the Excise Act, 2001 and requires a vaping product licensee that imports a packaged vaping product for stamping in Canada to immediately deliver the vaping product to their licensed premises after it is released by the Canada Border Services Agency.
This amendment applies in respect of vaping products imported into Canada or released (as defined in subsection 2(1) of the Customs Act) after 2023.
Domestic production
Section 158.57 imposes duty on vaping products. Prior to January 1, 2024, paragraph 158.57(a) provided that vaping duty was payable on vaping products manufactured in Canada by the vaping product licensee that packaged them at the time the products were packaged.
Effective January 1, 2024, Section 158.57(a) was amended to provide that vaping duty is payable at the time the products are stamped and applies to products packaged after 2023.
Importation
Prior to January 1, 2024, paragraph 158.57(b) provided that vaping duty was payable by the importer at the time of importation.
Effective January 1, 2024, paragraph 158.57(a.1) was added and provides that when packaged vaping products are imported by a vaping product licensee for stamping in Canada, the vaping duty is payable by the licensee at the time they are stamped. Paragraph 158.57(b) was also amended and provides that in the case of any other imported vaping products, the vaping duty remains payable by the importer at the time of importation.
These amendments apply in respect of vaping products manufactured in Canada that are packaged after 2023 and in respect of vaping products imported into Canada or released (as defined in subsection 2(1) of the Customs Act) after 2023.
Imposition of additional vaping duty
Section 158.58 imposes an additional vaping duty in respect of a specified vaping province on vaping products, if applicable. This section was amended for consistency with the amendments made to section 158.57 and provides that any additional vaping duty is payable at the same time as the vaping duty.
Contravention of section 158.47
Under the amended legislation, new section 233.3 provides that if a person that is liable to pay a duty on imported vaping products enters the imported vaping products into the duty paid market without prescribed information or without being stamped, then that person is liable to a penalty equal to 200% of the applicable duty.
This amendment came into force on June 20, 2024.
Contravention of sections 158.35 and 158.43 to 158.45
Previously, section 234.2 provided that a person was liable to a penalty equal to 200% of the applicable vaping duty if the person did any of the following:
- manufactures vaping products without a licence
- receives for sale unpackaged and unstamped vaping products from a manufacturer that is not a vaping product licensee
- sells or offers to sell unpackaged or unstamped vaping products
Section 234.2 has been amended to include the imposition of penalties equal to 200% of the applicable vaping duty if any person did any of the following:
- purchased unpackaged and unstamped vaping products from a manufacturer that is not a vaping product licensee
- disposed of, purchased or had in their possession unpackaged or unstamped vaping products
- distributed unpackaged or unstamped vaping products
This amendment came into force on June 20, 2024.
Contravention of section 158.511
Under the amended legislation, new section 249.1 provides that any person that contravenes section 158.511, which requires that packaged vaping products imported for stamping in Canada be immediately delivered to the premises of the vaping product licensee for stamping, is liable to a penalty equal to 50% of the applicable vaping duty.
This amendment came into force on June 20, 2024 and applies with respect to packaged vaping products imported after 2023 for stamping by the vaping product licence.
Stamping and marking of vaping products
The Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations provide rules relating to the stamping, marking and labelling of vaping products under the Excise Act, 2001.
Section 3.6 of the Regulations prescribes that one of the following be printed on packaged vaping products that were manufactured in Canada:
- the vaping product licensee's name and address
- the vaping product licensee's licence number
- if the vaping products are packaged by the vaping product licensee for another person, the person's name and the address of their principal place of business
Under the amended legislation, in addition to the previous options for prescribed information, amendments to the Regulations added the requirement for additional prescribed information as follows:
- the volume in millilitres of the vaping substance in liquid form contained in each vaping device or immediate container in the package
- the weight in grams of the vaping substance in solid form contained in each vaping device or immediate container in the package
- the number of vaping devices and immediate containers in the package
The addition of the requirement to include the volume or weight of the vaping substance and the quantity of devices or containers in a package came into force on January 1, 2025.
The amendments to section 3.7 of the Regulations require the following information to be printed on a packaged vaping product imported for the duty-paid market:
- if the vaping product was imported by a vaping product licensee, their name and address or vaping product licence number
- if the vaping product was imported by a vaping prescribed person, their name and address
- the volume in millilitres of the vaping substance in liquid form, and the weight in grams of the vaping substance in solid form, contained in each vaping device or immediate container in the package and the number of vaping devices and immediate containers in the package
The name and address of the manufacturer that packaged the vaping products is no longer required as prescribed information for imported vaping products.
The amendments to section 3.7 of the Regulations came into force on January 1, 2025.
Subsection 8(1) of the Regulations was amended to include subsection 158.5(1.1). Subsection 8(1) now prescribes the information to be printed on or affixed to a container of vaping products that are removed from the premises of a vaping product licensee for export and delivery to an accredited representative. The amendments to subsection 8(1) came into force on January 1, 2024.
Further information
For all technical publications related to excise duties, go to Excise duties technical information.
To request an excise duty licence for vaping products, 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, go to Excise duty on vaping products or call 1‑866‑330‑3304.
For information on how to request a ruling or interpretation related to excise duties, go to Requesting an excise and specialty tax ruling or interpretation.