EXPLANATORY STATEMENT
EXCISE ACT 1901
EXCISE REGULATIONS (AMENDMENT)
STATUTORY RULES 1990 NO. 221
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS
Section 164 of the Excise Act 1901 (“the Act”) provides in part that “The Governor-General may make regulations not inconsistent with this Act prescribing all matters which by this Act are required or permitted to be prescribed or as may be necessary or convenient to be prescribed for giving effect to this Act or for the conduct of any business relating to the Excise and …”
The Statutory Rules amend the Excise Regulations (the Regulations) by providing a prescribed circumstance whereby the Comptroller-General may approve the entry into home consumption of bulk spirit containers.
Background
Section 58 of the Act prohibits the entry into home consumption of bulk spirit unless prior written approval of the Comptroller-General has been obtained. Sub-section 58(5) of the Act places certain constraints on the Comptroller-General’s approval; specifically the bulk containers must not have a capacity of more than 20 litres, or such other volumes as are prescribed.
It has now come to attention that the restriction of 20 litres is too restrictive for one particular industry practice, and a higher bulk container ceiling is therefore proposed.
A distiller has established a market for selling Australian brandy to hotels and clubs in 25 litre plastic containers for dispensing to customers through bar facilities. To enable the distiller to continue selling Australian brandy in 25 litre containers, this volume must be prescribed pursuant to paragraph 58(5) (a) of the Act. The new Regulation 93 prescribes such a volume and ensures adequate controls are maintained by limiting the capacity of the containers to not more than 25 litres and specifying that they may only contain brandy produced in Australia.
Overview
The Excise Regulations (Amendment) Statutory Rules 1990, issued under the authority of the Minister of State for Small Business and Customs, amend the Excise Regulations to address a specific industry practice concerning the entry into home consumption of bulk spirit containers. The original Excise Act 1901 established stringent controls on the entry of bulk spirits into home consumption, requiring prior approval from the Comptroller-General and limiting the container capacity to 20 litres. However, the introduction of these regulations recognises the need to accommodate industry requirements, particularly for distillers who sell Australian brandy to hotels and clubs in 25-litre plastic containers. The amendment aims to balance industry needs with regulatory requirements by prescribing a higher bulk container volume of up to 25 litres for Australian brandy, ensuring that adequate controls are maintained through specific limitations and conditions.
Scope and Application
The Excise Regulations (Amendment) Statutory Rules 1990 No. 221, issued under the authority of the Minister of State for Small Business and Customs, amend the Excise Regulations to provide a specific prescribed circumstance where the Comptroller-General may approve the entry into home consumption of bulk spirit containers. This amendment responds to a particular industry practice where a distiller has established a market for selling Australian brandy to hotels and clubs in 25 litre plastic containers. Section 58 of the Excise Act 1901 prohibits the entry into home consumption of bulk spirit without prior written approval from the Comptroller-General, and subsection 58(5) restricts the approval to containers not exceeding 20 litres unless otherwise prescribed. The new Regulation 93 thus prescribes a 25-litre volume for Australian brandy, ensuring that the containers do not exceed this limit and only contain brandy produced in Australia, thereby maintaining adequate controls while accommodating the industry practice. This amendment applies to entities involved in the production and distribution of Australian brandy, specifically those selling in 25-litre containers, and extends to the national jurisdiction under the Commonwealth.
Key Provisions
The Excise Regulations (Amendment) Statutory Rules 1990 No. 221 amend the Excise Regulations by introducing a prescribed circumstance (Regulation 93) whereby the Comptroller-General may approve the entry into home consumption of bulk spirit containers of up to 25 litres. This amendment specifically addresses the needs of the Australian brandy industry, which has established a market for selling Australian brandy to hotels and clubs in 25-litre containers. This new regulation allows for these containers to be used for dispensing brandy through bar facilities, provided they meet the specified conditions.
The obligations imposed by this amendment on the relevant parties include ensuring that the 25-litre containers are used exclusively for Australian brandy and not for any other type of spirit. Additionally, the containers must comply with all other requirements set out in the Excise Act 1901 and the Excise Regulations. The distillers must also apply for and obtain the Comptroller-General’s approval before entering the containers into home consumption. This application process ensures that the Comptroller-General can maintain control over the volume and type of spirits being used in this capacity.
Failure to comply with the provisions of the Excise Act 1901 and the amended Excise Regulations can result in civil or criminal penalties. Specifically, under section 174 of the Act, a person who contravenes a provision of the Act or the Regulations is liable to a penalty. The maximum penalty for a corporation is $210,000, and for an individual, it is $42,000. Additionally, the Act provides for the seizure and forfeiture of goods that are the subject of a contravention, as outlined in section 176. This ensures that non-compliance not only has financial repercussions but also affects the operational capabilities of the offenders by removing the non-compliant goods from circulation.