Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003
I, MARGOT RUSHTON, Assistant Commissioner Excise in the Australian Taxation Office and delegate of the Commissioner of Taxation, make this Determination under section 77FB of the Excise Act 1901.
Dated 18 of March 2003
Original signed by
MARGOT RUSHTON
Delegate of the Commissioner of Taxation
___________________________________________________________________________
1 Name of determination
This Determination may be cited as the Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003.
2 Commencement
This Determination commences on and from the date of publication of the Determination in the Gazette.
3 Definitions
In this Determination:
- CEO means the Commissioner of Taxation;
- liqueur means a beverage classified to subitem 2(G) of the Schedule to the Excise Tariff Act 1921;
- ready to drink beverage means a beverage classified to subitem 1(D) of the Schedule to the Excise Tariff Act 1921;
- strength means the percentage by volume of alcohol at 20 degrees Celsius.
4 Application of Determination
This Determination applies to ready to drink beverages and liqueurs entered for home consumption on or after the date of commencement of the Determination.
5 Measuring Equipment
(a) You must ascertain the alcoholic strength of ready to drink beverages and liqueurs by one or more of the following processes:
(i) by the use of gas chromatography;
(ii) by the use of near infra red spectrometery; or
(iii) by distillation followed by the gravimetric measurement of the distillate or by measurement in a density meter.
(b) You must calibrate the accuracy of the measuring instruments (eg, volumetric glassware, hydrometer, pycnometer, thermometer) at intervals of one year or less, against standard instruments that have been certified by an independent authority approved by the National Association of Testing Authorities (NATA). The standard instruments must be calibrated by an independent NATA approved authority at intervals of five years or less.
6 Sampling and analysis
(a) You must ascertain the alcoholic strength of ready to drink beverages and liqueurs by analysing samples taken after the beverage has been manufactured to its final strength. Sufficient samples must be taken from each run to ensure the strength measured in accordance with paragraph 6(b) accurately reflects the true strength of the beverage.
(b) You must analyse the samples with the approved calibrated equipment. The alcoholic strength of the beverage is taken to be the average of the strength of all the readings. The alcoholic strength calculated is to be expressed as the volume that would be the volume of that alcohol if the alcohol were measured at a temperature of 20 degrees Celsius. Calculation by reference to the specific gravity of alcohol is to be made on the basis that, at a temperature of 20 degrees Celsius and in a vacuum, the specific gravity of alcohol in relation to water is 0.79067.
7 Permitted variations
For the purposes of working out the excise duty payable:
(a) If the actual strength of the beverage does not exceed the labelled strength by more than 0.2%, the strength is taken to be the labelled strength.
(b) If the strength of the beverage exceeds the labelled strength by more than 0.2%, the strength is the actual strength.
Overview
The Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003 was introduced to address the need for accurate measurement of alcohol content in ready-to-drink beverages and liqueurs for the purposes of excise duty calculation. This legislative instrument was enacted by Margot Rushton, the Assistant Commissioner Excise in the Australian Taxation Office, and serves as a delegate of the Commissioner of Taxation under section 77FB of the Excise Act 1901. The policy objective of this Determination is to ensure that the alcoholic strength of these beverages is measured and reported accurately, which in turn supports the equitable imposition of excise duty. The Determination specifies the methods of measurement, the calibration of measuring equipment, and the procedures for sampling and analysis to ensure consistency and reliability in determining the alcoholic content of these beverages.
Scope and Application
The Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003 applies to ready to drink beverages and liqueurs entered for home consumption after its commencement. This legislative instrument is applicable to those involved in the production and distribution of these alcoholic products within Australia, and it serves to regulate the measurement and declaration of alcoholic strength for excise duty purposes. The legislation mandates specific methods for ascertaining the alcoholic strength of these beverages, such as gas chromatography, near infra-red spectrometry, or distillation followed by gravimetric measurement or density meter use. Furthermore, the accuracy of measuring instruments must be calibrated annually against standard instruments certified by an independent authority approved by the National Association of Testing Authorities (NATA), with these standard instruments themselves calibrated every five years or less. The samples used for strength measurement must be taken post-manufacture and must adequately reflect the beverage's true strength, with the average of all readings determining the beverage's alcoholic strength. The determination also allows for minor variations in actual versus labelled strength, provided these variations do not exceed 0.2%.
Key Provisions
The Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003 (the Determination) provides detailed requirements and procedures for measuring the alcoholic strength of ready-to-drink beverages and liqueurs under the Excise Act 1901. This Determination applies to all ready-to-drink beverages and liqueurs entered for home consumption from the date it commenced (section 2). The Determination defines key terms such as "liqueur," "ready to drink beverage," and "strength" (section 3), and specifies the methods and equipment that must be used to measure the alcoholic strength (section 5).
The Determination mandates that the alcoholic strength of ready-to-drink beverages and liqueurs must be ascertained using specific processes, such as gas chromatography, near infrared spectrometry, or distillation followed by gravimetric measurement or measurement in a density meter (section 5(a)). It also requires that measuring instruments be calibrated annually against standard instruments certified by an independent authority approved by the National Association of Testing Authorities (NATA), with the standard instruments themselves being calibrated by an independent NATA approved authority at least every five years (section 5(b)). To ensure accuracy, samples must be taken after the beverage has been manufactured to its final strength and analysed using the approved calibrated equipment (section 6(a) and (b)). The alcoholic strength is then calculated as the average of all the readings, expressed as the volume of alcohol measured at a temperature of 20 degrees Celsius (section 6(b)).
The Determination further addresses permitted variations in the alcoholic strength of beverages for excise duty calculation purposes. If the actual strength does not exceed the labelled strength by more than 0.2%, the labelled strength is considered the actual strength (section 7(a)). However, if the actual strength exceeds the labelled strength by more than 0.2%, the actual strength is used (section 7(b)). Failure to comply with the requirements outlined in this Determination could potentially lead to civil or criminal consequences, although specific penalties are not detailed within the Determination itself.
In summary, the Excise Act (Alcoholic strength of ready to drink beverages and liqueurs) Determination 2003 sets forth precise requirements for measuring the alcoholic strength of ready-to-drink beverages and liqueurs, including the methods to be used, the calibration of equipment, and the sampling and analysis procedures. Compliance with these provisions is essential for ensuring the accuracy of the alcoholic strength measurements, which is critical for determining excise duties. While the Determination does not specify penalties for non-compliance, breaches could potentially lead to civil or criminal consequences under the broader framework of the Excise Act 1901.