CANADA
New excise stamp mandatory on tobacco products

The Government of Canada yesterday announced that, effective 1 July 2012, all tobacco products for sale anywhere in the Canadian market must carry the federal excise stamp.

Since 1 April 2011, the new excise tobacco stamp, which stamp indicates that federal excise duty has been paid and that the product was manufactured legally, has been mandatory on all new tobacco products destined for the Canadian duty-paid market.
However, for a limited transition period following that date, tobacco products in the market place were still allowed to have the former tear-tapes or paper stamps until inventories of the older products were depleted.
After 1 July 2012, any person who sells, offers for sale, or possesses tobacco products without the stamp is liable to a fine, imprisonment, or both, says Canada Revenue Agency.
The excise stamp has state-of-the-art visible and hidden identifiers and security features similar to those found on Canadian banknotes, such as unique colour-shift ink that changes from red to green when the stamp is tilted. The stamp also has hidden security features that only federal and provincial law enforcement agencies can detect.
Along with the new federal stamp, mandatory provincial tear-tape markings may continue to appear on tobacco product packages. However, Nova Scotia, Prince Edward Island, New Brunswick, Quebec, Manitoba and Alberta will participate in a combined tobacco stamping regime, which introduces stamps that display both federal and provincial requirements. (ci/pi)

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