Excise licence (spirits, wine and brewers)

An excise licence is the federal licence a distillery, winery or brewery holds to produce alcohol, separate from the provincial licence to sell it. A buyer meets it because, subject to exceptions in the Act, the Excise Act, 2001 says no person shall produce or package spirits or wine except in accordance with a licence issued to that person. The answer on transferring a liquor licence covers the provincial side.

What the Acts say

Section 14 of the Excise Act, 2001 lets the Minister, subject to the regulations and on application, issue a spirits licence authorizing a person to produce or package spirits and a wine licence authorizing the same for wine. Section 23(3) says the Minister shall require security for a spirits licence, in a form satisfactory to the Minister and an amount set by the regulations. It also says that on issuing a licence, or later, the Minister may, subject to the regulations, specify the permitted activities and premises, and may impose other conditions. For beer, section 168 of the Excise Act allows a brewer’s licence to be granted to a person who has complied with the Act, with the district inspector’s approval and a bond entered into jointly with a guarantee company approved by the Minister. The CRA publishes form L1, the application for a brewer’s licence.

What to ask

• Which excise licences the producer holds and who holds them.
• What security or bond is in place, and what happens to it on a sale.
• What the CRA needs when the licence holder changes.