11. Where wine is manufactured in different areas (e.g. manufacture, bottling, labelling in different areas), who is liable for payment of excise tax?
Excise duty becomes due when wine is removed from a Customs Controlled Area for home consumption. [LMAs and Offsite Storage areas are Customs Controlled Areas [CCA]Section 69 of the Customs & Excise Act 1996 provides that where contract manufacture takes place, the contractor is deemed to be the manufacturer.However, the following scenarios should be considered:- A licensed manufacturer (A) makes bulk wine and then sends it to another licensed manufacturer (B) for finishing. It is then sent back to (A). (A) is liable for the excise duty when that wine is removed for home consumption. A licensed manufacturer (A) makes bulk wine and sends it to another licensed manufacturer (B) for finishing. It is removed for home consumption from (B). (B) is liable A licensed manufacturer (A) makes bulk wine and then sends it to another licensed manufacturer (B) for finishing. (A) then sends the wine to an offsite storage area designated by (A). (A) is liable for the excise duty. A first owner, who is not licensed at all, employs a manufacturing area (A) to make wine and another manufacturing area (B) to finish it. It is then stored in an offsite storage area (C). (C) is responsible for the excise entry and the owner would generally pay the duty. A first owner employs a manufacturing area (A) to make wine and another manufacturing area (B) to finish it. It is then stored in an offsite storage area (C) licensed to the first owner. (C) is responsible for the excise entry and the excise duty.
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