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Excise Information - Answers to Commonly Asked Questions

Q

5. What is the definition of manufacturer? Can it include the first owner who is 'directing' or 'instructing' others re manufacture, bottling, labelling etc?

A

Refer to section 2 (1) and 2(3) of the Act in regards to manufacture.

[  “manufacture”, in relation to goods specified in Schedule 3 of the Act, means,— if the goods are neither tobacco nor a fuel,— any operation, or process, involved in the production of the goods. ]

No. It does not include the first owner directing or instructing.

A first owner is often someone who is not required to be licensed  themselves as they do not physically undertake any manufacturing process (as defined). Nothing in the Act regarding manufacture or any requirements or liabilities placed on the goods being manufactured, relates to those first owners.

However subject to section 76 of The Act, liability for excise duty falls both on the manufacturer and owner of the wine jointly and severally until the excise duty has been fully paid.

1. What is the definition of geographical area in respect of off-site storage areas? Is this 'law' or 'policy'?
2. If the first owner is out of the 'geographic region' can the wine be moved to the owner's region before tax is due?
3. Is a 'cleanskin' a finished product?
4. Is labelling and/or bottling part of the manufacturing process?
6. Is labelling and bottling at a separate LMA a temporary movement? Should the bottled/labelled product be returned to the original manufacturer?
7. Can a bottler/labeller store goods as an offsite storage operation?
8. Who is responsible for excise if an offsite store is used by someone other than the licence holder?
9. Can you compartmentalise the LMA in a contract facility (e.g. for off site storage)?
10. Are the designated compartments of an Offsite Storage Area only available to the one licence holder? What happens if your compartment is full?
11. Where wine is manufactured in different areas (e.g. manufacture, bottling, labelling in different areas), who is liable for payment of excise tax?
12. Why is the LMA liable for excise (or jointly liable)? When does this liability cease?
13. Who is responsible for the excise returns – the manufacture, off-site storage area licence holder or first owner?
14. Under what circumstances can the first owner/off-site storage area licence holder lodge excise returns?
15. Can the first owner take responsibility for excise returns if not licensed?
16. When will excise entries be able to be lodged electronically?
17. In the case of export delays/short-shipping, when does excise become due?
18. Will we issue temporary/short term off-site storage area licences in bumper years?
19. What if there is no storage facility left in the geographic region (e.g. bumper harvest)?
20. Do customs have an option to revoke licences?
21. Can licences be surrendered?
FAQs