Excise Regulations 1925 (Amendment)

Overview

The Excise Regulations 1925 Amendment Regulation (No. 89) 1946 was made under the Excise Act 1901-1942 to address issues related to the allowance for waste on spirit added to wine in a manufacturing warehouse. Enacted by the Governor-General in Council, the regulation aimed to provide a more precise allowance for the use of spirit in the fortification of wine or grape must. This regulation replaced Regulation 93a of the Excise Regulations 1925, introducing a new allowance of 2.5 per cent of the Excise duty payable on the quantity of spirit used in the specified process. The policy objective was to ensure that the allowance is made correctly and efficiently, reflecting the requirements of manufacturing warehouses licensed under the Customs Act 1901-1936.

Scope and Application

The Excise Regulations 1925, amended by the Statutory Rules 1946, No. 89, establish specific provisions for allowances on excise duty for certain spirits used in the manufacturing of fortified wines within licensed warehouses. This regulation applies to entities operating manufacturing warehouses under the Customs Act 1901-1936, where such fortified wine production occurs. The regulation provides an allowance of 2.5 per cent of the excise duty for spirits used to fortify wine or grape must, provided that the wine or grape must has been racked at least once during storage in the warehouse. The regulation operates under the authority of the Excise Act 1901-1942, thus having a national reach across Australia as a Commonwealth legislation. It is important to note that these regulations are subject to change through subordinate instruments, ensuring they can be updated to reflect changes in industry practices or policy objectives.

Key Provisions

The Excise Regulations 1925, as amended by Statutory Rules 1946, No. 89, introduce a new regulation concerning allowances for waste on spirit used in fortifying wine or grape must in a manufacturing warehouse. Regulation 93a specifies that a Collector may grant an allowance of 2.5 per cent of the Excise duty payable on the quantity of spirit used for fortifying wine or grape must when these products are cleared for home consumption. This allowance is applicable provided that the wine or grape must, excluding concentrated grape must, has been racked at least once while stored in the warehouse. This regulation aims to provide a financial adjustment for any spirit that is wasted during the manufacturing process, thereby offering some relief to manufacturers in terms of excise duties. Entities governed by the Excise Regulations 1925, such as manufacturers holding a license under the Customs Act 1901-1936, must ensure that their wine or grape must has been racked at least once before clearance for home consumption. This requirement is critical to qualify for the allowance of 2.5 per cent of the Excise duty on the spirit used. Additionally, these entities must accurately calculate the amount of spirit used and the corresponding excise duty to ensure compliance with the new regulation. Failure to adhere to the requirements stipulated in Regulation 93a can lead to various civil and criminal consequences. The specific provisions of the Excise Act 1901-1942, which the Excise Regulations 1925 implement, may impose fines or penalties for non-compliance. The maximum penalties can vary, but they are designed to enforce adherence to the excise regulations and to ensure that the correct duties are paid on goods cleared for home consumption. It is important for entities subject to these regulations to understand and comply with the new allowance provisions to avoid any potential legal repercussions.