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  • Repackaging duty paid beer

    The duty payable on beer depends on its alcoholic strength and the size of the container in which the beer is packaged. The duty for beer in containers over 48 litres is less than for beer in containers of 48 litres and under. The repackaging of duty paid beer is subject to additional rules.

    Repackaging of beer

    If beer has been packaged in an individual container over 48 litres and has had duty paid on it, repackaging that beer into sealed individual containers not exceeding 48 litres is treated as the manufacture of beer.

    If you intend to repackage duty paid beer in this way, you must hold an excise manufacturer licence. There are penalties for undertaking excise manufacture without a licence.

    However, from 1 July 2019, you‘ll need a manufacturer licence if you repackage beer that has had excise duty paid on it at a concessional rate into individual sealed containers that are:

    • less than eight litres
    • 8-48 litres (inclusive), where the container is not designed to connect to a pressurised gas or pump delivery system or other prescribed system.

    You will be responsible for the excise duty payable on the repackaged beer, based on the applicable rates of duty. The initial duty paid on the beer is not refundable.

    Exceptions

    There are two circumstances in which an entity will not need a manufacturer licence and will not incur a second amount of duty on the same beer.

    • If it decants beer from a container that holds 48 litres or less.
    • If it obtains an excise storage licence to hold or acquire the bulk beer under bond (that is, without the duty being paid on the beer). The duty is then payable at the higher packaged rate when the smaller sealed containers are filled.

    However, from 1 July 2019 an alcohol manufacturer licence will not be required where the beer has had duty paid on it at the non-concessional rate, and it is then repackaged into another sealed container.

    If an entity obtains an excise storage licence to hold or acquire the bulk beer under bond without the duty being paid on the beer, the duty is then payable at the higher packaged rate (if applicable) when the sealed containers are filled.

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      Last modified: 12 Apr 2019QC 25552