Ottawa, June 30, 2026
This document is also available in PDF (703 KB)
This Memorandum is the reference document for applicable excise codes and applicable GST exemption codes available in the CBSA Assessment and Revenue Management (CARM).
Target audience: Importers of commercial goods
Key content: Provide reference information on the different excise codes, excise exemption codes and GST exemption codes; provide an overview of the changes on excise and GST in CARM.
Updates made to this D-memo
This memorandum has been amended to reflect temporary suspension of the federal fuel excise tax.
Guidelines
Background information
To help importers correctly declare goods and pay required duties and taxes according to the applicable legislative provisions found in Acts and Regulations such as the Excise Act, the Excise Act, 2001, and the Excise Tax Act, the Canada Border Services Agency (CBSA) has revised the coding system of Excise codes and GST exemption codes in CARM.
While excise duties, excise taxes, and GST exemptions are legislated and regulated by the Canada Revenue Agency (CRA), the responsibility to administer and collect duties and taxes at the border falls onto the CBSA.
The tables found below provide the codes’ uses and guidance on where to find relevant information. The tables are separated by code type:
- Excise duties (alcohol, tobacco, cannabis and vaping products)
- Excise taxes* (fuel-inefficient vehicles, automobile air conditioning units, certain petroleum products, and Luxury Tax)
- Excise exemptions
GST exemptions
*For the purposes of this memorandum, special taxes and fees are considered excise taxes.
For procedural guidance relevant to importers, please see the D17 - Accounting and Release Procedures series of documents and the CARM User Guides.
CBSA Assessment and Revenue Management (CARM)
CARM’s Commercial Accounting Declaration (CAD) only allows for a single excise code to be selected per line, and provides the proper fields to account for the information relating to the goods.
Goods that can incur more than one excise charge, such as luxury vehicles and cannabis products, now have designated codes to allow a single code to account for multiple applicable excise charges. These codes cover all possible importation scenarios where multiple codes would apply, such as when the Luxury Tax applies with the Air Conditioners Tax on a vehicle, or when both Federal and Additional (Provincial) duties on cannabis apply to a hand lotion.
Luxury vehicles
Existing codes for Luxury vehicles found in Memorandum D18-4-1: Select Luxury Items Tax on Importation are unchanged and remain valid, though they are to be used for instances where only the Luxury Tax on vehicles apply.
In cases where a vehicle is subject to more than one excise tax (i.e. when the luxury vehicle is also subject to the excise tax on fuel-inefficient vehicles and/or the Air Conditioners Tax), Luxury codes (L-codes) were created. These L-codes cover each possible combination of these three different excise taxes.
It is the importer’s responsibility to review the list of codes and, based on their goods, select the code that pertains to their importation from the drop down list of the Excise Tax Code field on the CAD.
Examples of common import scenarios using L-codes are provided below:
Example 1
The vehicle is imported by a Registered Vendor which is exempt from Luxury Tax. The vehicle has a weighted average fuel consumption rating of at least 13 L but less than 14 L per 100 kilometers, and is subject to the Air Conditioners excise Tax. In this case, code L26 is to be selected.
Example 2
The lowest rate of Luxury Tax determined for an imported luxury vehicle is 20% of the taxable amount above $100,000 of the vehicle. The vehicle also has a weighted average fuel consumption rating of 16 L or more per 100 kilometers, but is not subject to the Air Conditioners excise Tax. In this case, code L04 is to be selected.
Example 3
The lowest rate of Luxury Tax determined for an imported luxury vehicle is 10% of the value of the vehicle. The vehicle also has a weighted average fuel consumption rating of at least 14 L but less than 15 L per 100 kilometers, and is subject to the Air Conditioners Excise Tax. In this case, code L17 is to be selected.
Example 4
The vehicle is conditionally exempt from Luxury Tax, but is subject to the automobile Air Conditioners Excise Tax. In this case, code L35 is to be selected.
Cannabis products
Cannabis excise codes (C-codes) have been created to account for the combination of Federal and Additional (Provincial) excise duties and group them together, therefore eliminating codes E50-E57.
It is the importer’s responsibility to review the list of codes and, based on their goods, select the code that pertains to their importation from the drop down list of the Excise Tax Code field on the CAD.
Examples of common import scenarios using C-codes are provided below:
Example 1
Baked goods not containing cannabis are being imported into Canada. As the excise duty does not apply to goods without cannabis, code C00 is to be selected.
Example 2
Cannabis viable seeds are being imported into Manitoba. As only the federal excise duty applies to goods imported in Manitoba, code C03 is to be selected.
Example 3
A vegetative cannabis plant is being imported and destined for Ontario. Based on the amount to be imported, the Federal and Additional (Provincial) excise duties to be paid are both higher when the specified rate is selected. In this case, code C14 is to be selected.
Example 4
Hand lotion containing cannabis is imported into British-Columbia. Topical goods containing cannabis only incur Federal excise duties for the time being, as the current rate for Additional (Provincial) excise duties is set at 0%. In this case, code C16 is to be selected.
Example 5
Cannabis viable seeds are being imported into New Brunswick. Based on the amount imported, the Federal ad valorem rate is higher, while the Additional (Provincial) rate is higher in its specified rate. In this case, code C20 is to be selected.
Excise Framework
Currently, all excisable goods fall under a specific excise tax code in order for all excise duties and taxes to be relieved should an excise exemption code apply to the commodity being imported.
For example, Lager (classified under 2203.00.00.31) now falls under Excise Code E33. If imported for Ships’ stores purposes, Excise exemption code E91 now relieves the excise duties because the commodity is placed under an excise tax code, not linked via the Harmonized System (HS) classification itself.
Removal of codes
The CBSA’s review revealed that some codes had been repealed, misinterpreted, or duplicated. In order to streamline and modernise the Excise Framework, the codes no longer in effect or applicable to CARM have been removed.
For a complete list of codes that were removed, as well as the reasoning, refer to Appendix E.
Validations
System validations have been added to Excise and GST codes in CARM. These not only link potentially applicable codes to the appropriate Tariff Classification numbers, but can also be further validated wherein specific commodity qualifications, such as Alcohol percentage or Province of Destination, must be entered in the system for it to accept the CAD.
For example, Excise Code E11 applies to wines more than 1.2% or equal to 7% of absolute ethyl alcohol by volume. In this case, the validation includes alcohol percentage, meaning it must be entered on the CAD to accept the code and proceed to the next step.
This memorandum contains the validations associated with C00, C05 and C16 in Appendix A.
Rate types
Below are the different rate types found in the Excise Framework, and a definition for each:
- Specified: A dollar or cent amount is applied as an excise charge. This charge is calculated automatically in CARM.
- Ad Valorem: A percentage amount is applied as an excise charge. This charge is calculated automatically in CARM.
- Accept Rate: The importer is responsible for determining the amount owed. The amount owing is to be manually calculated and entered on the CAD.
- Free: An amount of $0.00 is applied and calculated automatically in CARM. This rate type is reserved for Excise and GST exemption codes.
- Non-applicable: No value is applicable as an excise charge.
Appendices
Appendices and other references are available on the CBSA website at: