Administrative procedures for the importation of non-beverage ethyl alcohol
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This memorandum outlines the administrative procedures to be followed for the importation of non-beverage ethyl alcohol.
The following tariff items are taken from the Schedule to the Customs Tariff.
2207.10 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher
2207.10.90 - - - Other
2207.20 - Ethyl alcohol and other spirits, denatured, of any strength
- - - Ethyl alcohol:
2207.20.11 - - - - In accordance with the specifications prescribed by the Excise Act and the regulations made thereunder, and in accordance with the regulations made under that Act prescribing the conditions under which specially denatured alcohol may be imported
2207.20.19 - - - - Other
2207.20.90 - - - Other
For the purposes of this Memorandum, the following definitions apply:
additional customs duty – refers to the duty that applies, pursuant to subsection 21(1) of the Customs Tariff, to imported products and is equal to the excise duty that applies to such products when manufactured domestically.
denatured ethyl alcohol – means ethyl alcohol in suitable admixture with such denaturants as to render it unfit for drinking but allows its use for industrial purposes.
non-beverage ethyl alcohol – means denatured or undenatured ethyl alcohol that is used for purposes other than for human consumption as an alcoholic beverage.
undenatured ethyl alcohol – means ethyl alcohol that has not been denatured in any way and may be characterized by the absence of secondary constituents giving flavour or aroma. Ethyl alcohol that is less than 100% contains water as its non- alcoholic constituent.
specially denatured ethyl alcohol – means ethyl alcohol that has been mixed with prescribed denaturants approved by the Minister, that renders the alcohol unfit for use in the manufacture of potable beverages but allows its use for industrial purposes.
2. Documents presented to the Canada Customs and Revenue Agency (CCRA) to obtain release of a shipment of denatured or specially denatured ethyl alcohol must contain the following information in addition to the usual customs information:
3. The products subject to the administrative sampling program are those provided for in tariff items 2207.20.11 and 2207.20.90.
4. Tariff item 2207.20.11 provides for denatured and specially denatured ethyl alcohol that meet the specifications in excise duty Circular ED 204-1, Departmental Regulations Respecting Specially Denatured and Denatured Alcohol, and excise duty Circular ED 204-3, Guidelines for Denatured Alcohol Operations – Specifications for Denatured Alcohol. Only those imported products meeting these specifications may be classified under this tariff item.
5. Tariff item 2207.20.19 provides for denatured ethyl alcohol that does not meet the above excise specifications.
6. Tariff item 2207.20.90 must not be used when classifying denatured or specially denatured ethyl alcohol. Rather, this tariff item provides for other denatured spirits such as denatured rum.
7. CCRA’s policy is that all importations of denatured and specially denatured ethyl alcohol in containers of a capacity exceeding 20 litres must be sampled and analyzed to verify denaturation.
8. Importations in containers of 20 litres or less do not require sampling, provided the formulation is adequately described in the Material Safety Data Sheet (MSDS) provided by the manufacturer.
9. Representative samples are to be approximately 125 ml and must be in suitable containers provided by the CCRA. Prepackaged samples are not accepted. If an importer refuses to allow a sample to be taken, the goods are classified under tariff item 2207.20.19.
10. Approved sampling equipment may be purchased from the following suppliers:
Catalogue No. 56615-731 (sampling pole) and 16186-054 (bottles)
Canadawide Scientific Ltd.
Catalogue No. 17900-02 or 17180-04
Catalogue No. 025-149-03
11. The steps below must be taken in the presence of a customs officer:
12. The following steps must be taken by a customs officer monitoring the sampling:
Telephone: (613) 954-9944
Fax: (613) 952-7825
13. Specially denatured ethyl alcohol can only be imported by permit holders. You can obtain a complete list of permit holders from any excise duties regional office at the addresses and telephone numbers provided in excise duty Circular ED 201-4.
14. You can obtain a permit by applying to any of the excise duties offices.
15. The various grades of denatured ethyl alcohol that have been denatured according to the specifications in excise duty Circular ED 204-3 do not require a permit to enter Canada.
16. The additional documentation requirements for denatured and specially denatured ethyl alcohol outlined in paragraph 2 do not apply to undenatured ethyl alcohol.
17. Undenatured or pure ethyl alcohol may also be used for non-beverage purposes. Subheading 2207.10 provides for undenatured ethyl alcohol of an alcoholic strength of 80% by volume or higher while sub-heading 2208.90 provides for undenatured ethyl alcohol of an alcoholic strength less than 80% by volume. Tariff items 2207.10.90 and 2208.90.29 provide for undenatured ethyl alcohol when used for non-beverage purposes.
18. Only licensed distillers may legally produce or sell undenatured ethyl alcohol in Canada. Therefore, importations of undenatured ethyl alcohol for resale must generally be limited to those companies that are licensed as distillers by the CCRA. You can obtain a complete list of licensed distillers from any excise duties office.
19. Bonded manufacturers, licensed under the Excise Act, may also import undenatured ethyl alcohol provided they are the importer of record and verify that the imported undenatured ethyl alcohol is used in the products that they are licensed to manufacture.
20. Subsection 1(1) of Schedule I to the Excise Act imposes an excise duty of $11.066 per litre of absolute ethyl alcohol distilled in Canada. This amount has been reduced for ethyl alcohol used in specified end-uses by bonded or licensed firms.
21. Pursuant to subsection 21(1) of the Customs Tariff, an additional customs duty equal to the domestic excise duty applies to imported ethyl alcohol.
22. The rates of additional customs duty on imported ethyl alcohol, pursuant to subsection 21(1) of the Customs Tariff, are identical to those in Schedule I to the Excise Act. They are as follows:
23. When imported denatured or specially denatured ethyl alcohol meets the specifications in excise duty Circular ED 204-1 and Circular ED 204-3, it is classified under tariff item 2207.20.11 and exempt from the above additional customs duty.
24. When imported ethyl alcohol does not meet the above specifications, it is classified under tariff item 2207.20.19 and subject, pursuant to section 21 of the Customs Tariff, to an additional customs duty of $11.066 per litre of absolute ethyl alcohol and so in proportion for any less quantity than one litre, regardless of end-use.
25. You can obtain further information regarding these procedures by contacting:
Senior Program Officer
Trade Policy and Interpretation Directorate
Canada Customs and Revenue Agency
4th floor, 150 Isabella Street
Ottawa ON K1A 0L8
Telephone: (613) 954-6931
Fax: (613) 952-3971
|Issuing office||Trade Policy and Interpretation Directorate|
|Headquarters file||HS 2207.20|
|Legislative references||Customs Tariff , subsection 21(1)
Tariff items 2207.10.90, 2207.20.11, 2207.20.19, 2207.20.90
Schedule to the Excise Act
|Other references||Excise Duty Circulars ED 201-4, ED 204-01, ED 204-3|
|Superseded memoranda D||D10-14-19, September 18, 1995|