Overview
Regulations made under the Liquor Licence and Control Act, 2019 (LLCA) require that any beer shipped into Ontario from another Canadian province or territory by a manufacturer of beer licensed under the Act, for the purpose of sale to purchasers in Ontario, must be shipped in accordance with an authorization issued by the LCBO.
To be considered authorized by the LCBO, an Ontario beer manufacturer must meet and remain in compliance with the policy requirements listed below. Non-compliance will impact an eligible beer manufacturer’s ability to continue making these shipments.
Eligibility Requirements
To be eligible, an Ontario beer manufacturer must:
• Have a Manufacturer’s Licence from the AGCO and the equivalent licence from the relevant regulatory authority in the province/territory of Canada from which the beer will be shipped.
• Have a manufacturing facility in Ontario with an annual production capacity of 10,000 hectolitres and minimum annual production of 2,500 hectolitres.
• Have an identical ownership structure for its manufacturing facility in Ontario and each of its manufacturing facilities in other provinces/territories of Canada at which beer being shipped into Ontario under the policy was produced.
• Be in compliance with LCBO policy requirements.
Policy Requirements
All beer shipped under this Policy must be:
• Owned by the Ontario beer manufacturer or its affiliate.
• Produced and packaged by the Ontario beer manufacturer or its affiliate in a manufacturing facility in another province or territory of Canada.
• Possessed and sold in compliance with all applicable Ontario statutes, regulations, policies, standards, and requirements relating to the offering for sale or supply, or sale of beer in Ontario to the same extent as beer manufactured within Ontario.
• Reported through the Ontario government’s Beer Return.
If requested by the LCBO, the Ontario beer manufacturer must:
• Demonstrate that the ownership structure of the manufacturing facilities are identical.
• Permit the inspection of any manufacturing facility or warehouse related to shipments under this policy.
• Provide records relating to the receipt, shipment, storage and use of the shipped beer at any time upon reasonable notice.
• Grant internal and external auditors of the LCBO access to all relevant systems, documentation, and resources for the purpose of conducting an audit for compliance with this policy and applicable laws.
An Ontario beer manufacturer must retain all records, books of account and invoices related to the receipt, shipment, storage and use of the beer shipped under LCBO’s policy for seven years from the end of the year in which the receipt, shipment, storage, or use of the beer occurred.
For clarity, these requirements do not apply to beer shipped into Ontario solely for transportation, storage or export and which is not subsequently offered for sale, supplied, or sold in Ontario.
For questions or further assistance, please contact lcbo-policy@lcbo.com.
Frequently Asked Questions:
1. Where do I apply?
There is no application process. If you meet the requirements under LCBO’s policy, then you are authorized to ship beer under the policy.
You must meet and remain in compliance with all requirements set out in the Policy.
If you fail to comply with the requirements set out in this Policy, then you are no longer eligible to participate and will remain ineligible until full compliance is met.
2. What requirements apply to the beer shipments into Ontario?
All out-of-province beer shipped into Ontario under LCBO’s policy is treated the same as Ontario product. This means that the beer is subject to Ontario’s liquor legislation, including the Liquor Licence and Control Act, 2019 and the Liquor Tax Act, 1996, and any applicable agreements the Ontario government has entered (such as the Early Implementation Agreement or the Ontario Deposit Return Program Agreement).
3. How do I report?
All eligible and participating brewers will continue to report all shipments to the Ontario government in their Beer Return. LCBO works with the Ministry of Finance to monitor compliance.
4. What is an affiliate?
Under the Liquor Tax Act, 1996, companies are considered affiliates when one controls the other, when both are subsidiaries of the same corporation, or when both are controlled by the same person or group of persons. Control exists where a person or corporation owns more than 50 per cent of the voting shares that carry the right to elect a majority of the board of directors. Control may be held directly or indirectly, including through one or more other corporations.
For questions or further assistance, please contact lcbo-policy@lcbo.com.