Register as an Exempt Sale Retail Dealer

Businesses located on reserve or designated lands that want to make exempt sales of tobacco products to Indians must apply to the Director, Tobacco Tax Act, for an Exempt Sale Retail Dealer (ESRD) permit. Exempt sales may be made only by businesses issued an ESRD permit.

To apply for an ESRD permit, please complete an Application for Registration as an Exempt Sale Retail Dealer (FIN 262) and attach the following information:

	a business plan
	a map showing the business location and the location of other ESRDs in the market area
	a band council resolution approving the sale of tax-exempt tobacco products on the reserve by the proposed business
	the name of the tobacco wholesaler for the proposed business
	photographs of business premises and tobacco sales and storage facilities

Details are provided on the application form about other required information. To obtain an application, please contact us via telephone at 250-387-1856.

A permit may be issued if it is required to meet a legitimate demand for tax-exempt tobacco products. The Tobacco Tax Act provides the director with the discretion to determine whether an ESRD permit will be issued. An applicant may be refused a permit if the director is satisfied that there are already sufficient ESRDs in the market area.

The director considers the following factors when determining whether a new ESRD permit will be issued:

	registered status Indian population of the market area
	the number and location of ESRDs in the market area
	the location of the applicant's business in relation to other ESRDs
	the quantity of exempt tobacco currently available in the market area
	the sales pattern of existing ESRDs in the area (see the Sales Patterns section in Bulletin TTA 001, Exempt Sales Made by Retail Dealers)
	the nature of the applicant's proposed business (including hours of operation, type of business)

The director may refuse to issue an ESRD permit when other relevant factors indicate a permit should not be issued. These factors include:

	the applicant, or a person with an interest in the applicant (e.g. the director of a company) has a history of non-compliance with the Tobacco Tax Act
	the applicant does not have a permanent location, secure tobacco storage, adequate accounting controls, approval from the band council, or a business plan indicating a viable business
	there are sufficient dealers already in the market area
	there is a sufficient quantity of exempt tobacco available in the market area
	the applicant's business does not offer any significant added convenience to potential customers
	the sales patterns of existing ESRDs in the area indicate that tobacco is being purchased for a purpose other than personal consumption or use (see Sales Patterns in Bulletin TTA 001, Exempt Sales Made by Retail Dealers)

Persons issued an ESRD permit are agents of the Minister of Small Business and Revenue under the Tobacco Tax Act and are authorized to make retail sales only.
As such, ESRDs have a legal obligation to take reasonable measures to ensure they sell tobacco only to persons who are purchasing it for their own consumption and use.