CBSA Message: TCC19-145 - Cannabis - Edibles, Extracts and Topicals Customs Excise Duty Procedures / Procédures relatives aux droits d'accise sur le cannabis comestible, extraits de cannabis et cannabis pour usage topique

Further to Customs Notice CN19-24 pertaining to Cannabis - Edibles, Extracts and Topicals Customs Excise Duty Procedures https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn19-24-eng.html please note the following for completion of the CADEX formatted records:

  1. The table below is a list of the province/territory HS Administrative Codes to be entered in Field 27 on Form B3-3, Canada Customs Coding Form.

Province / Territory

HS Administrative Code

Alberta

0000.99.99.70

British Columbia

0000.99.99.71

Manitoba

0000.99.99.72

New Brunswick

0000.99.99.73

Newfoundland & Labrador

0000.99.99.74

Northwest Territories

0000.99.99.75

Nova Scotia

0000.99.99.76

Nunavut

0000.99.99.77

Ontario

0000.99.99.78

Prince Edward Island

0000.99.99.79

Québec

0000.99.99.80

Saskatchewan

0000.99.99.81

Yukon

0000.99.99.82

  1. The table below is a list of the Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals

Province/Territory

Federal Rate

Additional Rate in Respect of

Current Ad Valorem

Sales Tax

 

($/mg of total THC)

Province/Territory

Adjustment

   

($/mg of total THC)

(%)

Alberta

0.0025

0.0075

16.8

British Columbia

0.0025

0.0075

-

Manitoba

0.0025

N/A

-

New Brunswick

0.0025

0.0075

-

Newfoundland and Labrador

0.0025

0.0075

-

Northwest Territories

0.0025

0.0075

-

Nova Scotia

0.0025

0.0075

-

Nunavut

0.0025

0.0075

19.3

Ontario

0.0025

0.0075

3.9

Prince Edward Island

0.0025

0.0075

-

Quebec

0.0025

0.0075

-

Saskatchewan

0.0025

0.0075

6.45

Yukon

0.0025

0.0075

-

  1. The following example illustrates how the customs duty, federal excise duty and provincial excise duty is to be calculated on Form B3-3, Canada Customs Coding Form.

 

Example:

Calculation of cannabis duty and additional cannabis duty on a chocolate bar (U.S. origin), 100 grams, infused with 500 milligrams of THC imported in Ontario. The value of the importation is $200.00 (CAD).

19-24-ex1_eng_0.png

Classification - Line 1
Shows the actual classification line; the Health Canada Import permit number must be entered in Special Authority field (26). The GST (5%) is calculated on the value for duty and entered in Field 42.

Calculation of Combined Federal and Provincial Excise Duty - Line 2
Shows the amount of the combined federal and provincial excise duty; this amount is calculated at $0.01 per milligram of THC of the quantity imported (which includes the flat-rate federal cannabis duty of $0.0025 per milligram of the total THC of the cannabis product plus the flat-rate provincial additional cannabis duty of $0.0075). See Table - Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals

  • The importer is required to add the province/territory HS Administrative Code, for the province/territory of import in Field 27. See Table - List of the province/territory HS Administrative Codes
  • The importer is required to enter 44 on field 34 – Excise Tax Rate to allow a manual calculation of Federal and Provincial excise duty to be entered in field 40 and THC quantity must be entered in field 29 of this line.
  • The amount of the excise duty payable to be entered in field 40 is $5.00, this is calculated by multiplying 500 milligrams of THC by $0.01.
  • This amount of $5.00 is also to be entered in field 41, value for tax.

Provincial Sales Tax Adjustment - Line 3
Shows the amount of sales tax adjustment for Ontario, calculated by multiplying the base amount by 3.9%. See Table - Proposed Excise Duty Rates for Cannabis Edibles, Cannabis Extracts (including Oil) and Cannabis Topicals

  • The importer is required to add the province/territory HS Administrative Code, for the province/territory of import in Field 27. See Table - List of the province/territory HS Administrative Codes
  • The importer is required to enter 44 on field 34 – Excise Tax Rate and manually calculate the sales tax adjustment amount to be entered on field 40.
  • The sales tax adjustment amount to be entered in on field 40 is $7.80.  This amount is calculated by multiplying the value for duty from field 37 of Line 1 ($200.00) by the provincial sales tax adjustment rate for the province of Ontario, which is 3.9%
  • This amount of $7.80 is also to be entered in field 41, value for tax.

CADEX FORMAT

Line 1

  • Prepare the first B3 line as you normally would to account for the goods
  • The KI30 record would contain the Health Canada Import permit number in the Special Authority field
  • The KI50 record would contain 00000001000 in the GST Amount field

Line 2

  • The KI30 record would contain 0000999978 in the Classification Number field
  • The KI40 record would contain 0000000500000 in the Classification Line Quantity field
  • The KI50 record would contain 44.0 in the Excise Tax Rate field
  • The KI50 record would contain 0000000500 in the Excise Tax Amount field
  • The KI50 record would contain 000000000500 in the Value for Tax field

Line 3

  • The KI30 record would contain 0000999978 in the Classification Number field
  • The KI50 record would contain 44.0 in the Excise Tax Rate field
  • The KI50 record would contain 0000000780 in the Excise Tax Amount field
  • The KI50 record would contain 000000000780 in the Value for Tax field

 

  • The KI90 record would contain 00000001280 in the Total Excise Tax field
  • The KI90 record would contain 000000001064 in the Total GST field
  • The KI90 record would contain 000000002344 in the Total Duty & Tax field