EXPLANATORY STATEMENT
CEO Determination No. 2 of 2006
Customs Act 1901
Section 153AB of the Customs Act 1901 (the Act) requires customs duty to be paid on an alcoholic beverage according to the labelled alcoholic strength of prescribed alcoholic beverages, even when the actual strength is less than the labelled strength. Section 153AC of the Act provides that the CEO may, in writing, determine rules for working out the percentage by volume of alcohol in a beverage, permitted variations in strength, methods of testing, sampling and analysis.
Background and Instrument
CEO Determination No. 2 of 2006 (Customs Act (Strength of Alcoholic Beverages) Determination) establishes rules to govern the measurement of the strength of an imported alcoholic beverage and provides for permitted variations in labelled strength from the actual strength for determining the customs duty payable. It further sets out the permissible methods of testing, sampling and analysis. CEO Determination No. 2 of 2006 mirrors the determination by the Deputy Commissioner of Taxation under the Excise Act 1901 (Excise (Alcoholic strength of excisable beverages) Determination 2006 (No. 1)) which allows for similar testing methods, equipment, analysis and results in relation to the payment of excise duty on a locally produced alcoholic beverage. CEO Determination No. 2 of 2006 permits owners and importers to choose methods for sampling, testing and analysis that are suitable for their business.
Paragraphs 1 to 5 of CEO Determination No. 2 of 2006 provide, inter alia, that it applies to all alcoholic beverages that are entered for, or delivered into, home consumption on or after its commencement. It also defines the key terms, commencement, and objectives of the instrument.
Paragraph 6 of CEO Determination No. 2 of 2006 requires that the strength of an alcoholic beverage be measured by analysing a sufficient number of samples of the product. The strength is taken to be the average strength of all samples, expressed as a percentage.
Paragraph 7 of CEO Determination No. 2 of 2006 provides for the instruments and processes to be used to measure the strength of an alcoholic beverage.
Paragraph 8 of CEO Determination No. 2 of 2006 permits variations in alcoholic strength when calculating the customs duty payable on beer, and on alcoholic beverages other than beer.
Consultation
Customs has consulted extensively with people likely to be affected by this instrument, including industry.
Commencement
The instrument commences on the day after it is registered.