Declaration and Terms Regarding Additional Duty

Declaration and Terms Regarding Additional Duty

The below declaration and terms apply with respect to orders for vaping products placed with BRS Canada Limited (“One Distro”) by a retailer (“the Retailer”).

Representation and warranty regarding Additional Duty

Vaping products intended for consumption, use, or sale to consumers in specified vaping provinces are subject to an additional excise duty pursuant to section 158.58 of the Excise Act, 2001. The specified vaping provinces are the following: 

1.       Ontario

2.       Québec

3.       Northwest Territories,

4.       Nunavut

5.       New Brunswick

6.       Manitoba

7.       Prince Edward Island

8.       Alberta

9.       Yukon

Vaping products intended for consumption, use, or sale to the specified vaping provinces must be stamped as duty-paid with the applicable additional duty stamp.

It is an offence and a contravention subject to penalties under the Excise Act, 2001 for any person to dispose of, sell, offer for sale, purchase, or have in their possession vaping products in the specified provinces without the applicable additional duty stamp unless such products are to be sold or offered for sale in another province.

By accepting these terms of service and by placing an order for vaping products from One Distro, the Retailer represents and warrants to One Distro the following:

1.       The Retailer understands the requirements of the Excise Act, 2001 related to specified vaping provinces.

2.       The Retailer has not ordered and will not order vaping products from One Distro for consumption, use, or sale to consumers in specified vaping provinces unless the products are stamped as duty-paid for the particular specified vaping province.

3.       The Retailer will only order products with federal stamps for consumption, use, or sale to consumers in provinces that are not a specified vaping province.

4.       If the Retailer is ordering vaping products with federal stamps for delivery to a specified province, the retailer will only sell or offer for sale any such vaping products to consumers in a province that is not a specified vaping province. 

Indemnity

The Retailer acknowledges that One Distro relies on the above representations and warranties.

The Retailer agrees to indemnify and hold harmless One Distro for any penalty, duty, losses, costs, or consequences resulting from the Retailer’s sale or distribution of vaping products in specified vaping products that are not stamped for that province.

One Distro is not liable for consequential or indirect damages arising under this Agreement

Termination

One Distro reserves the right to void or terminate sales to retailers where warranted, as determined in One Distro’s sole discretion. 

Binding Nature and Severability

This Agreement is binding on all successors and assigns. Any invalid provision shall not affect the validity of others.

Independent Legal Advice

Each party affirms that they had the opportunity to seek independent legal advice.

Governing Law

This Agreement shall be governed by the laws of Ontario and Canada.

Counterparts

This Agreement may be executed in electronic or physical counterparts, each of which is deemed original and legally binding under applicable law.