ContrabandTobaccoOntarioQu233;becandFederalEnforcement安大略区和违禁香烟233；BEC和联邦执法

MichaelPerley,DirectorOntarioCampaignforActiononTobaccoCONTRABANDTOBACCO:

Ontario,QuébecAndFederalEnforcementToolsAndResponsibilities“ATaxingIssue:PublicHealthandContrabandTobacco〞UniversityofBuffaloCenterforTomorrowFebruary4-5,2021MichaelPerleyDirectorOntarioCampaignforActiononTobaccoCanada:FederalGovernmentCanadaRevenueAgency(CRA)Issueslicensesforcigarettemanufacturingandconductsinspectionsofgrowers,manufacturersandretailoutletsRevenueMinisterhasauthorityunderExciseAct2001(URL:)torevokemanufacturingandlicenseifaccesstomanufacturingfacilitiesisrefusedExciseActalsoprohibitspossessionorimportationoftobaccomanufacturingequipmentbyunlicensedmanufacturers(parallelmeasureinOntariolegislation)Canada:FederalGovt.

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RoyalCanadianMountedPolice(RCMP)

Keylegislation:ExciseActprohibitsunlicensedmanufacturingANDthepossession,transportation,orsaleofunstampedcigarettes–thatis,excisedutynotpaid.Focusonlarge-scaleillegalmanufacturinganddistributioninvolvingorganizedcrimeCooperationwithAkwesasneMohawkPolice,bordersecurityofficialsNoon-reserveactionagainstunlicensedmanufacturersReleaseofcontrabandtobaccoenforcementstrategyinMay/08(URL:)Canada:FederalGovt.

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OtherInterdepartmentalTaskForcecreatedtolookforfurtherenforcementoptions;$20millioninadditionalenforcementfundingannouncedinJuly/08.Improvedtaxmarkingsystemtobeintroducedin2021withadditionalcovertsecurityfeaturestocombatcounterfeittobaccoproducts.Québec2004:TobaccoTaxAct(URL:)amendedtocontrolimportation,transportation,storageandsaleofrawtobacco;powertoseizeshipmentsofrawtobaccotounlicensedmanufacturerscreated(appliedto“tobaccoleavesthathavenotbeenprocessedbeyondthedryingstageandfragmentsofsuchtobaccoleaves〞)2006:TobaccoTaxActamendedtobanpossessionandsaleofcounterfeittobaccoandtosubstantiallyincreasefinesforcontraband-relatedcrimes.Québec

(2)2021TobaccoTaxActamendedtomakeprovisionofservicestoanunlicensedpartybyalicensedmanufacturerillegal;Québecbudgetrequiresmanufacturersmakingcigarettesundercontractforsomeoneelseandtheotherpartytobothhavemanufacturer’spermits;Purchasingortakingdeliveryoftobaccoviaapartywithoutalicenseisprohibited(complementsprohibitiononsupplyofrawtobacco)Québec

(3)2021(cont’d)Importersofrawtobaccorequiredtokeepregistersandfilereports.May2021:QuébecHealthDepartmentandLavalpolicedepartmentslaunchOperation“VITAL〞tocounterillegaltobaccotradeinLaval:firstinstanceofjointprogrambetweenhealthandpoliceministries/departmentsinCanada.OntarioKeylegislation:TobaccoTaxAct():createstheauthoritytoseizecontraband,assesspenaltiesforpossessionofunmarkedproduct,andunpaidtaxes(3-8timesunpaidtaxdependingonoffence).Finesstartat$500andcanreach$50,000peroffence.Appliestoalltobaccoproductsincludingchewingtobacco.Retailersrequiredtoprovideinvoicestoproveproductspurchasedhavehadtaxescollected.Authoritytoseizeproductsuchasbaggieswithnohealthwarnings.Ontario

(2)SpecialInvestigationsBranchconductsinvestigationsincollaborationwithotherenforcementagencies.Appliestoretailersandwholesalers,importersandexporters.Prohibitssupplyoftobaccomanufacturingmachinerytounlicensedpersons(parallelwithfederallegislation)Manufacturing,wholesalingandretailingpermitsandcertificatesmaybecancelledifapersondesignatedundertheActfailstocomplywithitsconditions.Ontario

(3)Allpersonswhoproduce,purchase,sell,orstampcigarettesmustprovidesecurityequaltothegreaterofthreemonthstaxthatwouldbecollectableorupto$1million,whicheverisgreater.Retailsalesprohibitioncanlastuptosixmonths.Authorizedpersonswithreasonable/probablegroundsmaystopanyvehicle,examineitandseize“morethan200unmarkedcigarettes〞.Penaltiescanreach3timestaxdueplusupto$5,000infines.Noonecanpossessunmarked/untaxedcigarettes,morethan50unmarked/untaxedcigarsormorethan1kgofothertobacco.OntarioProvincialPoliceIfauthorityisobtainedfromRCMPorOntarioMinistryofRevenuetosearchvehicleand/orseizeproduct,OPPcanseizecontrabandunderthefederalExciseAct(Policy:50+cartons/bagsonly),andpossiblylaychargesundertheOntarioTobaccoTaxAct.CouldthenturnproductovertoOntarioMinistryofRevenueforcivilpenaltyorchargesOntarioMunicipalPoliceSameasOPPbutauthorityusuallyobtainedfromRevenueMinistry–policyalsoforq