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Excise Information - Answers to Commonly Asked Questions

Q

8. Who is responsible for excise if an offsite store is used by someone other than the licence holder?

A

Section 76 of The Act places the liability for the payment of excise duty on the manufacturer and the owner of the goods, or anyone who becomes the owner of the goods before excise had been fully paid.

In practice, however a number of circumstances arise and to assist the reader some are detailed below:

  • Section 70 requires the licensee of a Customs controlled area to lodge an excise return. So an offsite storage area would be required to lodge an excise return for those owners who were not licensed as manufacturers themselves.
  • Customs Regulation 52A allows for this excise entry requirement to be transferred back to the manufacturer if the manufacturer is storing their own goods in an offsite storage area.
  • As a general rule, the manufacturer is always required to lodge an excise entry for goods they have manufactured, regardless of where they are stored.
The actual payment of excise duty may come from a number of sources; including a first owner, LMA or Off Site Storage Area.

more FAQs

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