Customs Act (Strength of Alcoholic Beverages) Determination (CEO Determination No. 2 of 2006) (Cth)

COMMONWEALTH OF AUSTRALIA

CEO DETERMINATION NO. 2 OF 2006

Customs Act 1901

I, MICHAEL JOSEPH CARMODY, Chief Executive Officer of Customs, make this Determination under section 153AC of the Customs Act 1901.

1. NAME OF DETERMINATION

1.1.This Determination may be cited as the Customs Act (Strength of Alcoholic Beverages) Determination.

1. COMMENCEMENT

2.1.This Determination commences on the day after it is registered.

1. DEFINITIONS

3.1.In this Determination:

alcoholic beverage has the same meaning as in regulation 107C of the   Customs Regulations 1926, as in force from time to time.

strength means the percentage by volume of alcohol at 20 °C.

1. APPLICATION

4.1.This Determination applies to alcoholic beverages entered for, or delivered into, home consumption on or after the commencement of the Determination.

1. OBJECT

5.1.Under section 153AC of the Customs Act 1901, the CEO may determine rules for working out the percentage by volume of alcohol in a beverage.

5.2.The rules govern the measurement of the strength of an alcoholic beverage and provide permitted variations in strength from the actual strength for determining customs duty payable.

1. SAMPLING AND ANALYSIS

6.1.The strength of an alcoholic beverage must be measured by analysing samples of the product after it has reached its final strength, using equipment which has been calibrated at intervals of one year or less against standard instruments certified by an independent authority approved by the National Association of Testing Authorities (NATA).

6.2.Sufficient samples must be taken from each product in an importation to ensure the measurements accurately reflect the actual strength of the alcoholic beverage.

6.3.The strength of an alcoholic beverage:

6.3.1.is taken to be the average of the strength of all the sample measurements; and

6.3.2.is to be expressed as a percentage, as if the alcohol were measured at a temperature of 20 °C; and

6.3.3.if a calculation for the purpose of ascertaining that strength is made by reference to the specific gravity of alcohol, the specific gravity of alcohol in relation to water is 0.79067, in a vacuum at 20 °C.

1. MEASURING & EQUIPMENT

7.1.The instruments and processes used to measure the strength of an alcoholic beverage must be able to produce a result with a tolerance of plus or minus 0.2% of the actual strength.

7.2.Permissible methods are:

7.2.1.gas chromatography;

7.2.2.near infra-red spectrometry;

7.2.3.distillation followed by the gravimetric measurement of the distillate or by measurement in a density meter; or

7.2.4.any other method that consistently produces a similar result to any of the above methods.

7.3.If an owner enters for, or delivers into, home consumption less than 100,000 litres of beer in a calendar year, the owner may use a hydrometer and a formula to measure the strength of the beer, provided a documented testing process supports the formula and the records are retained for at least five years.

1. PERMITTED VARIATIONS

8.1.For the purposes of working out the customs duty payable on beer:

8.1.1.if the actual (measured) strength of beer, other than beer subject to secondary fermentation, does not exceed the labelled (or nominated) strength by more than 0.2%, the strength is the labelled (or nominated) strength and the customs duty rate applicable to that strength applies;

8.1.2.if the actual (measured) strength of beer, other than beer subject to secondary fermentation, exceeds the labelled (or nominated) strength by more than 0.2%, the strength is the actual (measured) strength and the customs duty rate applicable to that strength applies;

8.1.3.if the actual (measured) strength of beer subject to secondary fermentation does not exceed the labelled (or nominated) strength by more than 0.3%, the strength is the labelled (or nominated) strength and the customs duty rate applicable to that strength applies; or

8.1.4.if the actual (measured) strength of beer subject to secondary fermentation exceeds the labelled (or nominated) strength by more than 0.3%, the strength is the actual measured) strength and the customs duty rate applicable to that strength applies.

8.2.For the purpose of working out the customs duty payable on an alcoholic beverage other than beer:

8.2.1.if the actual (measured) strength of the beverage does not exceed the labelled (or nominated) strength by more than 0.2%, the strength is the labelled (or nominated) strength and the customs duty rate applicable to that strength applies; or

8.2.2.if the actual (measured) strength of the beverage exceeds the labelled (or nominated) strength by more than 0.2%, the strength is the actual (measured) strength and the customs duty rate applicable to that strength applies.

Dated:     4 July 2006

MICHAEL JOSEPH CARMODY

Chief Executive Officer of Customs