Excise Act (Alcoholic strength of spirits) 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 spirits) 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;
- spirits means beverages described in item 2 but excluding subitem 2(G) 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 spirits entered for home consumption on or after commencement of the Determination.
5 Measuring equipment
(a) You must ascertain the alcoholic strength of spirits by one or more of the following processes:
(i) by the use of hydrometry;
(ii) by the use of pycnometry;
(iii) by the use of gas chromatography;
(iv) by the use of near infra red spectrometry; or
(v) 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 the spirits by analysing sufficient samples 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 for duty purposes 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 shall 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 spirits) Determination 2003 was enacted to address the need for a standardised method of measuring the alcoholic strength of spirits for the purposes of excise duty calculation under the Excise Act 1901. This legislative instrument was introduced by the Australian Taxation Office, under the authority of the Commissioner of Taxation, aiming to ensure that the measurement of alcoholic strength in spirits is both accurate and consistent, thereby facilitating the correct imposition of excise duties. The Determination provides specific procedures for measuring the alcoholic strength of spirits, including approved methods and equipment, as well as protocols for calibration and analysis, ensuring that the measured strength accurately reflects the true alcohol content of the beverage. This approach helps maintain fairness and accuracy in the excise duty system, aligning with the policy objective of precise and reliable tax administration.
Scope and Application
The Excise Act (Alcoholic strength of spirits) Determination 2003 applies to spirits that are entered for home consumption on or after the commencement of the Determination. The term "spirits" is defined to include beverages described in item 2 of the Schedule to the Excise Tariff Act 1921, excluding subitem 2(G). The Determination mandates specific methods for measuring the alcoholic strength of these spirits, including hydrometry, pycnometry, gas chromatography, near infra-red spectrometry, or distillation followed by gravimetric measurement or measurement in a density meter. Measuring equipment must be calibrated annually against standards certified by an independent authority approved by the National Association of Testing Authorities (NATA), with these standard instruments themselves being re-calibrated every five years or less. The Determination also outlines procedures for sampling and analysis, ensuring that the measured strength accurately reflects the true alcoholic strength of the beverage. It further specifies that for excise duty calculations, minor discrepancies between the labelled and actual strength are permissible, provided the actual strength does not exceed the labelled strength by more than 0.2%.
Key Provisions
The Excise Act (Alcoholic strength of spirits) Determination 2003, under section 77FB of the Excise Act 1901, establishes the procedures and standards for measuring the alcoholic strength of spirits intended for home consumption. This Determination applies to spirits entered for home consumption after its commencement, which is the date of its publication in the Gazette. The term "spirits" is defined as beverages described in item 2 of the Schedule to the Excise Tariff Act 1921, excluding subitem 2(G). The alcoholic strength is measured as the percentage by volume of alcohol at 20 degrees Celsius.
To ascertain the alcoholic strength of spirits, the Determination mandates the use of specific measuring processes, including hydrometry, pycnometry, gas chromatography, near infra-red spectrometry, or distillation followed by gravimetric measurement or density meter measurement. Additionally, the accuracy of the 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 being calibrated every five years or less. The Determination also requires that sufficient samples of spirits be analysed to ensure the measured strength accurately reflects the true strength of the beverage, with the alcoholic strength for duty purposes being the average of all the readings.
Parties governed by this Determination, such as those involved in the production, importation, or sale of spirits, must adhere to the outlined measuring procedures and calibration requirements. They must ensure that the measuring equipment is properly calibrated and that sufficient samples are analysed to accurately determine the alcoholic strength of the spirits. The determination of the alcoholic strength is crucial as it impacts the calculation of the excise duty payable on the spirits.
Failure to comply with the requirements of this Determination may result in civil or criminal penalties, although the specific penalties are not detailed within the text of the Determination itself. The Determination does, however, provide for permitted variations in the alcoholic strength of the beverage, stating that if the actual strength does not exceed the labelled strength by more than 0.2%, the strength is taken to be the labelled strength. If the actual strength exceeds the labelled strength by more than 0.2%, the actual strength is used for duty purposes.