Ottawa, August 21, 1981

Deficiencies in excisable goods are to be duty paid at the time that the deficiency is determined to be subject to payment of excise duty.

REFERENCES

Excise Act, subsections 54(1), 137(3), 171(2), 191(1).
Excise Warehousing Departmental Regulations, subsection 12(2).

COMPLIANCE

1. When deficiencies are ascertained to be subject to payment of excise duty as prescribed by the Excise Act or pursuant regulations, the licensee is required to tender payment:

1. in the case of excess deficiencies on removals in bond, upon receipt of the returned copy of the entry bearing the discrepancy report;
2. in the case of any deficiency found on exports in bond where there is evidence that seals have been broken or otherwise tempered with, upon receipt of the returned copy of the entry bearing a report of the discrepancy;
3. in the case of excess deficiencies found at stock-taking, at the time that an excess deficiency is established by stock-taking; and
4. in the case of operational losses, when the licensee is advised by excise that a loss is excessive and for which no acceptable written explanation has been provided.

2. For licensed brewers, payment for deficiencies described in section 1 is to be included with normal revenue remittances on Form K50B, Excise Duty Return – Brewer.

3. Licensees who do not normally remit revenues and are not familiar with revenue remitting procedures are advised that the necessary forms and information regarding their completion are available from the office of the Regional Director of Excise for their region.

Regional Directors are requested to ensure that a copy of this Circular is forwarded by registered mail to all excise duty licensees concerned who are located in their regions.

Circular ED200-51, April 22, 1981, is superseded.

THIS CIRCULAR IS ISSUED UNDER THE AUTHORITY OF THE ASSISTANT DEPUTY MINISTER OF NATIONAL REVENUE, EXCISE, AS INFORMATION RELATING TO THE PROVISION OF THE EXCISE ACT AND REGULATIONS.