Section 1 definition of "retail authorization" BEFORE amended by BC Reg 216/2010, effective July 1, 2010.
"retail authorization" means
(a) an authorization issued by the director in accordance with section 6,
(b) a written authorization provided by the director under section 6.2, or
(c) an authorization held by a person referred to in section 6.3;
Section 1 definitions of "indicium" and "tear tape" BEFORE repealed by BC Reg 123/2015, effective July 1, 2015.
"indicium" means
(a) a mark on a package, carton or case, as specified in section 26,
(b) a mark on a package or case as specified in section 27, or
(c) a stamp on a package as specified in section 28;
"tear tape" means the ribbon that is wrapped around a package to facilitate the opening of the wrapping that encloses the package;
Section 1 definitions of "case", "exempt consumer", "exempted tobacco", "manufacturer", "mark-point", "package" and "unmarked tobacco", BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
"case" means
(a) in relation to cigarettes, a container in which 25 or more cartons are packed,
(b) in relation to pre-proportioned tobacco sticks, a container in which no fewer than 10 packages are packed, and
(c) in relation to tobacco other than that referred to in paragraph (a) or(b), a container in which no fewer than 10 packages are packed;
"exempt consumer" means a consumer who is, by virtue of an enactment of British Columbia or Canada, not liable to pay the tax imposed by this Act;
"exempted tobacco" means tobacco exempted from tax under this Act or under an Act of Parliament;
"manufacturer" means a person who manufactures, fabricates, produces or packs in Canada packages, cartons and cases intended for distribution, sale or storage in British Columbia;
"mark-point" means a location authorized by the director for the purposes of marking or stamping packages, cartons or cases of tobacco;
"package" means
(a) in relation to cigarettes, a container in which 30 or fewer cigarettes are packed,
(b) in relation to pre-proportioned tobacco sticks, a container in which no fewer than 100 and no more than 300 pre-proportioned tobacco sticks are packed, and
(c) in relation to tobacco other than cigarettes, cigars, pre-proportioned tobacco sticks, pipe tobacco, snuff, chewing tobacco or raw leaf tobacco, a container in which no more than 500 grams of that tobacco is packed;
"unmarked tobacco" means a package, carton or case that is not marked or stamped with the indicium and is not black stock tobacco.
Section 1 definitions of "British Columbia stamp" and "fine cut tobacco" were added by BC Reg 123/2015, effective July 1, 2015.
Section 4( 2) (a) and (3) BEFORE repealed by BC Reg 123/2015, effective July 1, 2015.
(a) an arrangement that complies with subsection (3),
(3) A person holding a wholesale dealer permit must acquire, over each 3 month period, at least 75% of that person's supply of resale inventory from manufacturers of tobacco or, in the case of imported tobacco, from an agent of the manufacturer, unless otherwise authorized by the director.
Section 6 (1) (d) (ii) and (iii) BEFORE amended by BC Reg 17/2017, effective January 31, 2017.
(ii) to which a prohibition order under the Tobacco Control Act applies, or
(iii) that is subject to an administrative proceeding under the Tobacco Control Act.
Section 6.2 (1) (b) (ii) and (iii) BEFORE amended by BC Reg 17/2017, effective January 31, 2017.
(ii) to which a prohibition order under the Tobacco Control Act applies, or
(iii) that is the subject of an administrative proceeding under the Tobacco Control Act.
Section 6.3 BEFORE repealed by BC Reg 216/2010, effective July 1, 2010.
Registration under the Social Service Tax Act
6.3 (1) A person is authorized to sell tobacco at retail until June 1, 2008 if, on September 1, 2007, the person
(a) has a valid registration certificate issued under the Social Service Tax Act, and
(b) is otherwise in compliance with the Act and the regulations.
(2) A person referred to in subsection (1) must, on or before June 1, 2008,
(a) notify the director, in writing, that the person is selling tobacco at retail,
(b) submit a copy of the certificate to the director, and
(c) provide the director with the information set out in section 6.1.
(3) On receiving the information required under subsection (2), the director may issue a retail authorization to the person if the circumstances described in section 6 (1) (b) to (d) apply.
[en. B.C. Reg. 233/2007, s. 3.]
Section 8 (3), (4) and (5) BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
(3) An exempt sale retail dealer who is authorized to sell black stock tobacco may purchase, possess, and store black stock tobacco or sell black stock tobacco to an exempt consumer, and an exempt sale retail dealer who is authorized to sell unmarked tobacco may purchase, possess, store unmarked tobacco or sell unmarked tobacco to an exempt consumer.
(4) Subject to subsection (5), an exempt sale retail dealer may not sell tobacco that bears the indicium without collecting the tax imposed by the Act.
(5) An exempt sale retail dealer may sell tobacco that bears the indicium to an exempt consumer without collecting the tax, if the exempt sale retail dealer receives the prior approval of the director to do so.
Section 9 (1.1) and (5) were added by BC Reg 123/2015, effective July 1, 2015.
Section 9 (2) and (3) BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
(2) A dealer who does not hold an exempt sale retail dealer permit authorizing the dealer to sell black stock tobacco must apply in writing to the director for authorization to purchase, possess, store or sell packages, cartons and cases of black stock tobacco.
(3) A dealer who does not hold an exempt sale retail dealer permit authorizing the dealer to sell unmarked tobacco must apply in writing to the director for authorization to purchase, possess, store or sell packages, cartons and cases of unmarked tobacco.
Section 14 BEFORE amended by BC Reg 94/2015, effective May 25, 2015.
Collector's remuneration
14 (1) Subject to this regulation, a collector may deduct from the tax payable remuneration of
(a) 3% on the first $10 000 of tax, and
(b) 0.375% on the balance of tax
collected from all places of business operated by the collector during the month in respect of which a return or returns are made.
(2) The remuneration deducted under subsection (1) must not exceed $10 000 for each successive 12 month period commencing,
(a) in the case of a collector who had a place of business in operation on July 29, 1983, with the date the return is filed in respect of July in any year, or
(b) in the case of a collector who had no place of business in operation on July 29, 1983, with the date the return is filed in respect of the first month of operation in any year.
(3) A collector must not deduct any remuneration for a month for which the collector fails to remit money collected at the time and in the manner provided in this regulation.
Section 15 BEFORE amended by BC Reg 94/2015, effective May 25, 2015.
Tax rate change
15 (1) At any time the rate of tax is changed, every dealer must take an inventory of all tobacco on hand on which the full amount of tax under the Act has not been paid.
(2) Each dealer must record the inventory taken pursuant to subsection (1) on the declaration form supplied by the director, and must forward the original copy of the declaration, together with all taxes due and payable on such inventory, to the director within 30 days of the date on which the rate of tax is changed.
(3) Subject to subsection (4), every dealer may deduct from the tax due and payable under subsection (2) a remuneration of 5% of the tax to be remitted.
(4) A dealer must not deduct any remuneration if the dealer fails to complete the inventory report or to remit the tax due and payable at the time and in the manner required by subsection (2).
Section 15 (1) and (2) (part) BEFORE amended by BC Reg 147/2021, effective July 1, 2021.
(1) If some or all of the tobacco in respect of which a retail dealer was required to pay security under section 12 of the Act is in the possession of the retail dealer at the time that a change in the rate of tax payable by a consumer of that tobacco takes effect, the retail dealer must provide to the director an inventory of that tobacco.
(2) If the rate of tax for tobacco increases, a retail dealer who is required to provide an inventory under subsection (1) must pay as security to the director, within the time required by the director, an amount equal to the difference between the following:
Section 15 (1.1), (1.2) and (1.3) were added by BC Reg 147/2021, effective July 1, 2021.
Section 18 (1) BEFORE amended by BC Reg 94/2015, effective May 25, 2015.
(1) A dealer must keep, at the dealer's principal place of business, records and books of account in a form and containing information that will allow for the accurate determination of the tax collectable under the Act.
Section 22 BEFORE amended by BC Reg 102/2015, effective June 9, 2015.
Refund for bad debts
22 (1) The amount of a refund to which a collector or a dealer is entitled under section 16 of the Act in respect of a sale of tobacco must be calculated in accordance with the following formula:
| WO | ||||
| R | = | TR | x | |
| TAP | ||||
where
| R | = | the amount of the refund to which the collector or dealer is entitled in respect of the sale; |
| TR | = | the tax remitted on the sale; |
| WO | = | the amount of money remaining unpaid on the sale that was written off as unrealizable or uncollectible, not including interest charges; |
| TAP | = | the total amount payable on the sale including all applicable taxes, but not including interest charges. |
(2) Under section 16 (3) of the Act, a collector may deduct from the taxes the collector would otherwise be required to remit the amount of a refund to which the collector is entitled under section 16 (1) of the Act if the collector submits with the collector's tax return
(a) the name and address of the purchaser whose account has been written off,
(b) the amount of the sale and the tax involved,
(i) the amount of tax being deducted has been written off as unrealizable or uncollectible,
(ii) the collector is of the opinion that the amount of tax being deducted is unrealizable or uncollectible, and
(iii) the collector will, on recovering any part of the amount written off for which a refund is obtained or a deduction is taken under this subsection, remit to the director, by the 15th day of the month following the month in which the recovery is made, the proportion of the refund or deduction that the amount recovered bears to the amount written off.
(3) A collector or dealer who, under section 16 of the Act, obtains a refund or deducts the amount of the refund from the amount of taxes the collector is required to remit must retain all records of the sale in relation to which the tax was imposed until their disposal is authorized by the director.
(4) If a collector or dealer intends to apply for a refund under section 16 (1) of the Act, or a collector intends to deduct that refund from the amount of the taxes the collector is required to remit, the collector or dealer must do so as soon as possible after the collector or dealer has written off the collection of the tax.
Section 23 BEFORE re-enacted by BC Reg 123/2015, effective July 1, 2015.
Requirement to mark or stamp packages, cartons and cases
23 (1) Subject to subsection (5), every manufacturer of tobacco for sale in British Columbia to a consumer who is liable to pay tax under the Act must mark each package, carton and case with an indicium as specified in sections 26 and 27.
(2) Subject to subsection (5), every dealer who imports into Canada tobacco for sale in British Columbia to a consumer who is liable to pay tax under the Act must stamp each package with an indicium as specified in section 28.
(3) Subject to subsection (6), if a dealer acquires unmarked tobacco from a person who has imported the tobacco into Canada and the tobacco is to be sold by the dealer in British Columbia to a consumer who is liable to pay tax under the Act, the dealer must stamp each package with an indicium as specified in section 28.
(4) Subsections (2) and (3) do not apply to a dealer who is a manufacturer of tobacco if the dealer has applied an indicium under subsection (1).
(5) A package, carton or case must not be marked or stamped with the indicium if
(a) the package, carton or case is manufactured or imported for the purpose of a retail sale in British Columbia that is not a taxable sale under the Act, and
(b) the dealer to whom the package, carton or case is to be sold is authorized by the director to sell black stock tobacco or unmarked tobacco.
(6) A manufacturer or dealer referred to under subsection (1), (2) or (3) must apply in writing to the director for authorization to mark or stamp packages, cartons and cases.
Sections 25 and 26 BEFORE re-enacted by BC Reg 123/2015, effective July 1, 2015.
Powers of the director
25 The director may do any one or more of the following:
(a) authorize a manufacturer to mark packages, cartons and cases;
(b) authorize a dealer to stamp packages;
(c) authorize a dealer to purchase, possess or store black stock tobacco or unmarked tobacco and to sell black stock tobacco or unmarked tobacco to an exempt sale retail dealer or an exempt consumer;
(d) impose reasonable conditions and restrictions that the director considers appropriate with respect to the marking or stamping of packages, cartons and cases;
(e) specify the number and location of mark-points that a manufacturer or dealer who is authorized to mark or stamp packages, cartons and cases may establish and operate;
(f) cancel or suspend an authorization to mark or stamp packages, cartons and cases if the director is satisfied that a manufacturer or dealer has not complied with the Act or the regulations.
Marking requirements — cigarettes
26 (1) For the purposes of section 23, every package of cigarettes must be marked on the tear tape with an indicium that conforms to the following specifications:
(a) the indicium must read "CANADA DUTY PAID — DROIT ACQUITTÉ — BRITISH COLUMBIA — COLOMBIE BRITANNIQUE";
(b) the width of the indicium must not be less than 4.5 millimetres;
(c) the background colour of the indicium must be in pantone green 333, 100%;
(d) the colour of the text must be in process black, 100%;
(e) the text must be in Helvetica 8 point.
(2) In addition to the requirements under subsection (1), every carton of cigarettes and package of pre-proportioned tobacco sticks must be marked with an indicium that conforms to the following specifications:
(a) the indicium must read "BC — CB";
(b) the width of the indicium must not be less than 2.9 centimetres;
(c) the height of the indicium must not be less than 1.4 centimetres;
(d) the indicium must be surrounded by a border that is a thickness of 1.5 point;
(e) the background colour of the indicium must be in pantone green 333, 100%;
(f) the colour of the text and border must be process black, 100%;
(g) the text must be in Helvetica bold, not less than 12 point, upper case lettering.
(3) The indicium referred to in subsection (2) must be affixed or imprinted on each end sticker that seals the end flaps of the carton of cigarettes or package of pre-proportioned tobacco sticks, or if the carton or package is a paper box, at each end of the box.
(4) In addition to the requirements under subsections (1) and (2), every case of cigarettes or pre-proportioned tobacco sticks that contains packages must be marked by printing on the case the letters "BC — CB".
(5) The letters "BC — CB" referred to in subsection (4) must be printed on the top of any 2 opposite face sides of the case and must conform to the following specifications:
(a) the text must be 38.1 millimetres in height, upper case lettering;
Section 26.1 BEFORE repealed by BC Reg 66/2002, effective January 1, 2016.
Transitional marking system
26.1 (1) From July 1, 2015 to December 31, 2015, packages, cartons or cases may be marked or stamped in accordance with either or both of the following:
(a) this Part as it read immediately before the coming into force of this section, or
(b) this Part as it read on and after the date this section came into force.
(2) This section is repealed on January 1, 2016.
[en. B.C. Reg. 123/2015, Sch. s. 8.]
Sections 27 and 28 BEFORE repealed by BC Reg 123/2015, effective July 1, 2015.
Marking requirements — tobacco
27 (1) For the purposes of section 23 (1), every package of tobacco, other than those referred to in section 26 (1) and (2), must be marked with an indicium in accordance with subsection (2) or (3).
(2) For the purposes of subsection (1), every package that bears a tear-tape must be marked on the tear-tape with an indicium that conforms to the following specifications:
(a) the indicium must read "CANADA DUTY PAID — DROIT ACQUITTÉ — BRITISH COLUMBIA — COLOMBIE BRITANNIQUE";
(b) the width of the indicium must not be less than 4.5 millimetres;
(c) the background colour of the indicium must be pantone green 333, 100%;
(d) the colour of the text must be process black, 100%;
(e) the text must be in Helvetica 8 point.
(3) For the purposes of subsection (1), every package that does not bear a tear-tape must be marked on the stamp required under the Excise Act, 2001 (Canada) with an indicium that conforms to the following specifications:
(a) "BC" must appear before "DUTY PAID" and "CB" must appear before "DROIT ACQUITTÉ";
(b) the background colour of the indicium must be pantone green 333, 100%;
(c) the colour of the text must be process black, 100%;
(d) the text must be in Helvetica 8 point.
(4) In addition to the requirements of subsections (1) to (3), every case that contains packages described in subsection (1) must be marked by printing on the top of any 2 opposite face sides of the case the letters "BC — CB" that conform to the following specifications:
(a) the text must be 38.1 millimetres in height, upper case lettering;
(b) the colour of the text must be process black, 100%.
[am. B.C. Reg. 398/2003, s. (b).]
Stamping requirements
28 (1) For the purposes of section 23 (2) and (3), every package must be stamped with an indicium that conforms to the following specifications:
(a) the indicium must read "BRITISH COLUMBIA", below which there must be imprinted a serial number assigned by the director;
(b) the width of the indicium must not be less than 2.5 centimetres;
(c) the height of the indicium must not be less than 1.0 centimetre;
(d) the text must be Helvetica bold 9 point, upper case lettering, and the numbers must be in Helvetica bold 9 point.
(2) A dealer who is authorized by the director to stamp packages may apply to the director for a supply of indicia, in a quantity acceptable to the director, with which to stamp imported packages.
(3) The indicia referred to in subsection (2) remain the property of the Crown until the packages to which they are affixed are sold at retail sale.
Section 29(1) BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
(1) Every manufacturer and wholesale dealer must establish and maintain an accounting system, satisfactory to the director, that provides an accounting of the number of packages, cartons and cases that are
Section 29(4) and (5) BEFORE repealed by BC Reg 123/2015, effective July 1, 2015.
(4) Every dealer who is authorized to stamp packages must account for all indicia received from the director as and when requested to do so by the director.
(5) A dealer must return, on the demand of the director, any indicia in the dealer's possession, including any indicia affixed to unsold packages, if
Section 30 (1) and (2) BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
(1) A dealer must not purchase, possess, store or sell packages, cartons or cases that bear the mark or stamp of another jurisdiction, unless
(a) the dealer intends to ship the packages, cartons or cases that bear the mark or stamp of another jurisdiction out of British Columbia for resale, and
(b) the dealer has written authorization from the director to purchase, possess, store or sell packages, cartons or cases that bear the mark or stamp of another jurisdiction.
(2) A dealer must not sell a package, carton or case to a consumer liable to pay tax under the Act unless the package, carton or case is marked or stamped in accordance with this regulation.
Section 30(3) BEFORE repealed by BC Reg 123/2015, effective July 1, 2015.
(3) A dealer must not stamp a package unless the dealer is authorized in writing by the director to stamp packages.
Section 30(4) and (5) BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
(4) A dealer must not store black stock tobacco or unmarked tobacco, or packages, cartons or cases that bear the mark or stamp of another jurisdiction, at a location other than a mark-point or another location authorized in writing by the director.
(5) A manufacturer or dealer must not mark or stamp packages, cartons or cases other than at a mark-point.
Section 30(9) was added by BC Reg 123/2015, effective July 1, 2015.
Section 32 BEFORE amended by BC Reg 123/2015, effective July 1, 2015.
Non-application
32 (1) Sections 51 (2) and 54 (8) (a) (i) of the Act do not apply to
(a) black stock tobacco that is or was found in the possession of a dealer authorized to purchase, posses, store or sell black stock tobacco, or
(b) unmarked tobacco that is or was found in the possession of a dealer authorized to purchase, posses, store or sell unmarked tobacco.
(2) Section 54 (8) (a) (i) of the Act does not apply in circumstances where the quantity of tobacco is less than 1 000 grams.
Section 34.2 was enacted by BC Reg 246/2020, effective August 1, 2020 [retro from September 20, 2020].
Section 34.2 BEFORE repealed by BC Reg 210/2022, effective July 1, 2022 [retro from October 24, 2022].
Section 35 BEFORE amended by BC Reg 79/2015, effective May 25, 2015.
Offence and penalty
35 (1) A person who contravenes section 7 (1), 8 (1), (4), (7) or (8), 9 (1) or (4), 10 (1) to (3), 11 (4) or (6) to (11), 12, 13 (1) to (5), 15 (1), (2) or (4), 16, 17, 18 (1), (2) or (4), 19, 23, 24 or 30 commits an offence and is liable to the penalty set out in subsection (2).
(2) A person who commits an offence is liable
(a) on a first conviction, to a fine of not less than $500 and not more than $1 000, or to a term of imprisonment of not less than one month and not more than 3 months, or to both fine and imprisonment, and
(b) on a subsequent conviction for the same or another provision of this regulation, to a fine of not less than $500 and not more than $2 000, or to a term of imprisonment of not less than 3 months and not more than 6 months, or to both fine and imprisonment.