ato

 
 
Show download pdf controls
Show print controls

  • Application for a licence to manufacture excisable products – alcohol

    How to complete your Application for a licence to manufacture excisable products - alcohol. NAT 5906.

    On this page

    These instructions will help you complete your Application for a licence to manufacture excisable products – alcohol (NAT 5906, PDF, 523KB)This link will download a file.

    When to use this application

    Use this application to apply for an excise licence to:

    • manufacture beer
    • manufacture liqueurs and other excisable beverages
    • distil spirits
    • undertake maturation, blending or reduction in strength of spirits
    • denature ethanol.

    A manufacturer's licence also allows you to store on your premises the manufactured excisable goods and the materials used in manufacture.

    When we say 'you', we are referring to the person or entity applying to hold the licence. When we say 'premises' we mean the premises that are to be licensed.

    You must be licensed before you undertake any of the above activities. If you already hold an excise licence for a different activity, you must complete a new application for all additional activities.

    How we assess your application

    We decide if you are a fit and proper person to hold an excise licence and may check whether you have been convicted of a criminal offence.

    For companies, we also check that a company is fit and proper to hold the licence and that the following people who would participate in the management or control of the company or premises are fit and proper persons:

    • directors
    • officers
    • shareholders
    • managers or supervisors
    • employees.

    For partnerships, we will check that all the partners are people who are fit and proper to hold a licence.

    We will check whether you are an associate of a person, or a company, that is not fit and proper.

    We will also consider other factors, including if:

    • you have, or have available to you, the skills and experience required to carry out the activity that would be authorised by the licence
    • the physical security of the premises is adequate, having regard to the nature of the premises, the type and quantity of the goods, and the procedures used to ensure the goods' security on the premises
    • the plant and equipment to be used at the premises is suitable, having regard to the quantity and type of goods and the nature of the premises
    • you will have a market for the goods
    • you are able to keep proper books of account for audit purposes
    • it is necessary to refuse to grant the licence to protect revenue.

    Completing your application

    • You must provide the additional information described in the instructions when you lodge your application.
    • Answer all questions.
    • Place X in all applicable boxes.

    Section A: Applicant details

    Question 1

    Provide the legal name and trading name of the individual or business applying for the licence and the relevant Australian business number (ABN) or tax file number (TFN).

    It is not compulsory for you to provide your ABN or TFN but it will help us process your application promptly.

    Where possible, we like to do business with you online. If you would like to receive correspondence by email, provide an email address here.

    Trusts

    If the application is made for a trust, the applicant is the trustee and the ABN is the trustee's ABN in its capacity as trustee for the trust.

    Question 2

    Indicate whether your business is a small business entity, that is, your business turnover (aggregated turnover) is less than $10 million or $50 million (from 1 July 2020). If you are entitled to the small business concession, you can choose between weekly or monthly settlement of your duty liability.

    See also:

    Question 3

    Describe the business you are intending to operate and your proposed commencement date for operations. Be as specific as possible as this will assist us to make a decision on your application more quickly.

    Section B: Bank account details

    Question 4

    Complete this section if you expect to receive a refund of excise duty. The bank account should be held in the name of the applicant.

    Section C: Authorised contact details

    Question 5

    Provide the name, position and contact details of the people who are authorised to provide more information about this application or the operation of the business after we have granted a licence. This could be yourself as the applicant, or other people you nominate. Provide an email address if the authorised contacts would like to correspond with us by email.

    Section D: People involved in the management of the business

    Before granting a licence, we need to do some background checks. You, and all the individuals nominated in this section, may need to complete a Fit and proper person declaration (NAT 74815) form.

    Some may also need to complete a consent to criminal history record check form and provide the necessary identification documents. We will advise you if we require a criminal history check after we receive your application.

    Question 6

    Provide details of the people who will participate in the management or control of the business applying for the licence. This could include officers or directors of a company or partners in a partnership.

    You should also include details of anyone who is responsible for daily decision making or maintenance of records on the:

    • quantity of goods manufactured
    • storage of goods
    • sale or disposal of the goods
    • receipt and dispatch of the goods.

    People in positions such as the distiller, brewer, warehouse manager or production manager should be included in this section.

    All individuals nominated must complete a Fit and proper person declaration (NAT 74815) form.

    Question 7

    Provide details of all the people who will participate in the management or control of the premises. All individuals nominated must complete a Fit and proper person declaration (NAT 74815) form.

    Include details of anyone who has:

    • control over access to the premises
    • out-of-hours access to the premises
    • keys to the premises.

    For the purposes of holding an excise licence, the premises are the areas where the manufacture and storage of excisable goods will take place.

    Question 8

    We must also consider your associates before granting a licence. To do this we may need to do background checks on the people and entities you are associated with (within the meaning of the Income Tax Assessment Act 1997) that have influence in your business.

    Next steps:

    Section E: Financial information

    Question 9

    You must provide the most current profit and loss statement and balance sheet or any financial statements showing your present trading position.

    Question 10

    If you have a business plan, you should provide a copy. If you don't have a business plan, we may ask you to provide details about your business, such as:

    • sales projections
    • estimated expenses
    • estimated profit/loss figures
    • cash budget showing your ability to pay excise duty when it is due
    • brief assessment of strengths and weaknesses
    • brief assessment of opportunities and threats.

    Section F: Premises

    You must attach an A4 size copy of the site plan of the premises. The plan needs to:

    • be accurate and complete
    • be drawn to scale
    • clearly describe and define the area where the excisable goods will be manufactured and stored.

    The area to be licensed must be defined by shading. This is where manufacturing and storage must take place and is referred to as 'the establishment'.

    The plan must also clearly show the location of the building in relation to surrounding streets and adjoining buildings. If you use bulk storage tanks, indicate the location of all tanks either on the site plan or on a separate plan.

    Question 11

    If we have already issued an establishment identification number for these premises, quote that number in this section of the application. If the premises are not already licensed, then an establishment identification number will be issued with the licence.

    Question 12

    You must provide a name for your premises as this will become your establishment name. This could be the common name used within your business to describe the premises.

    Question 13

    If you hold a customs warehouse licence for the premises, provide your Customs establishment identification number.

    If you do not hold a customs warehouse licence for the premises, indicate if you have applied, or intend to apply, for a customs warehouse licence.

    Under delegation, we are responsible for administering excise equivalent goods (EEGs) imported into Australia and warehoused in a place licensed under section 79 of the Customs Act 1901. EEGs are the imported equivalent of locally manufactured goods that are subject to excise duty – for example, fuel, alcohol and tobacco products.

    Question 14

    Provide the street address of your premises.

    Question 15

    Provide details and photos of your premises so we can assess if they are suitable to be licensed.

    The type of information we need includes:

    • the construction materials used for floors, walls, ceilings and doors
    • the number of storeys in the building
    • the number of buildings
    • the type of boundary fences
    • details of fire alarms, smoke detectors and sprinklers.

    Question 16

    Provide details of the security you have in place so we can assess if your premises are suitable to be licensed.

    The security standard we require is generally the same as the normal commercial standard. However, this can depend on the quantity and nature of the goods you will manufacture and store.

    The type of information you could provide includes:

    • locks or bars on doors and windows
    • burglar alarms, security lighting, security guard patrols or closed-circuit TV cameras that make it likely that any unauthorised access will be noticed
    • your gate security system that identifies          
      • all people entering and leaving the site and confirms their right to do so
      • the type and quantity of goods entering and leaving the site
       
    • your surveillance system
    • procedures to handle and retain information from your surveillance system
    • your access control procedures, for example, limited distribution of keys and access swipe cards or codes
    • your security procedures when breaches are detected, for example, whether a back-to-base system is activated.

    Provide photos of the interior and exterior of the building, including all doors and windows, security systems, perimeter fencing, and major plant and equipment. Failure to provide comprehensive photos may delay us issuing your licence.

    Question 17

    Provide details and photos of containers and other equipment you will use to manufacture or store your alcohol products. The type of information you should provide may include:

    • the number and capacity of storage tanks, stills and fermenters to be used
    • temperature measuring equipment
    • weighing equipment used in determining volume
    • alcoholic strength measuring equipment
    • volume measuring equipment
    • packaging machines, for example bottling equipment.

    Question 18

    You must have right of possession and control over the premises. Indicate if you are the owner.

    Question 19

    If you are not the owner, advise if you have a lease for the premises.

    If you have a lease, provide the name of the owner, and the following details about the lease:

    • all the parties to the lease
    • the period of the lease
    • if you, as the lessee, have sole access to and control of the premises. If you are not the only person with access to and control of the premises, list all the people who have and their terms of access.

    We may ask you to provide a copy of the signed lease agreement.

    If you do not have a lease for the premises, provide details of your arrangement with the owner including:

    • the owner's name and contact details
    • the period of your arrangement
    • if you have sole access to and control of the premises. If you are not the only person with access to and control of the premises, list all the people who have and their terms of access.

    Section G: Manufacture of excisable goods

    Question 20

    Select the best descriptions of your proposed manufacturing activities.

    Question 21

    Provide details of the skills and experience you have available to enable you to carry out the activities indicated at question 20. You or your employees may have the skills and experience, or you may have engaged a consultant or business associate to work alongside you.

    Include details of:

    • experience in the activities indicated at question 20
    • educational qualifications relevant to the activities indicated at question 20
    • experience in dealing with excise matters, for example, lodging returns or movement permissions
    • previous dealings with us about the payment of excise duty
    • relevant knowledge of the industry.

    Question 22

    Indicate if you are the owner of the products to be manufactured at your premises. If you are not the owner of the products, provide the following information, where known:

    • the owner's name and their ABN
    • details of your arrangement with them
    • specific products involved.

    Question 23

    Provide details of the products you expect to manufacture in any 12 month period, including the:

    • type of products, for example beer or spirits (like vodka or gin)
    • proposed alcoholic strength
    • total quantity of products.

    Question 24

    Provide a step by step description of the process you will use to manufacture your products. These details should include whether the product is:

    • produced entirely by distillation
    • produced by distillation (with other ingredients added to the spirit after distillation)
    • produced by fermentation
    • manufactured using spirit brought in from a distillery or other source (if so, tell us where you will purchase the spirit from)
    • undergoing maturation.

    Question 25

    Provide details on the package type and size for each of your products.

    Question 26

    Explain how you intend to test the alcoholic strength of your products, corrected to 20°C.

    To correctly report your liability for excise duty, you need to be able to determine the alcoholic strength of your products to a reasonable standard of accuracy. Excise (Alcoholic Strength of Excisable Goods) Determination 2019 provides rules that govern the measurement of the alcoholic strength of alcoholic excisable goods and provides a means for working out the duty payable when there are variations in strength.

    Equipment used to measure the alcoholic strength must comply with legal requirements that relate to measurements. For more information about the legal requirements of measurements, contact the National Measurement InstituteExternal Link.

    Methods that may be used are:

    • gas chromatography
    • near infra-red spectrometry
    • distillation followed by the gravimetric measurement of the distillate or by measurement in a density meter
    • any other method that can measure the alcoholic strength of a product to an accuracy of + or − 0.2 percentage points of the actual strength.

    If you produce less than 100,000 litres of fermented beverages (including beer) in a financial year, you can use a hydrometer and a formula to measure the alcoholic strength of each fermented beverage. You must ensure the formula is supported by a documented testing process.

    Question 27

    Explain how you will determine the volume of your bulk vessels, corrected to 20°C.

    To correctly report your liability for excise duty, you need to be able to determine the volume of excisable goods held in your tanks and vessels to a reasonable standard of accuracy. Excise (Volume – Alcoholic excisable goods) Determination 2019 provides rules that govern the measurement of the volume of alcoholic excisable goods and provides a means for working out the duty payable when there are variations in volume.

    Equipment used to measure the volume must comply with legal requirements that relate to measurements and consistently produce an accurate result.

    For more information about the legal requirements of measurements, contact the National Measurement InstituteExternal Link.

    Question 28

    Explain how you will determine the final fill (i.e. the volume) of the packaged products corrected to 20°C.

    Refer to question 27 for information on volume measurement.

    Question 29

    Indicate if the measuring equipment you intend to use to determine your excise liability has been professionally calibrated. Measuring equipment includes equipment used to measure alcoholic strength, weight, volume and temperature.

    Where obtained, submit a copy of the certificate(s) of calibration with your application. 

    Question 30

    Indicate whether you own a still and, if so, provide the details requested including retailer's or manufacturer's name and address.

    Section H: Excise payment details

    Question 31

    If you will be responsible for paying the excise duty or lodging excise returns when the goods are entered for home consumption, answer 'Yes' to this question and then choose one of the two options:

    • Select Periodic payment if you would prefer to pay excise duty and lodge excise returns on a periodic basis after the goods have been delivered for home consumption. This is usually on a weekly basis. Permission to pay periodically is not granted automatically. If not granted, you will be required to pay prior to clearance.
    • Select Payment prior to clearance if you prefer to pay excise duty and lodge excise returns prior to the delivery of the goods for home consumption.

    If you are not responsible for paying the excise duty or lodging excise returns, answer 'No' and provide details of the person or entity who is responsible. If an individual is responsible, complete question (a), if an entity is responsible, complete question (b).

    We will only contact those nominated here for more information about the payment of excise duty. We will not contact them about other aspects of your application.

    Question 32

    If you are eligible for the small business entity concession, indicate whether you are applying for weekly or monthly settlement of your liability.

    If you are ineligible for the small business entity concession, you must choose weekly.

    Question 33

    Indicate the day you would like to lodge your weekly excise return and pay excise duty.

    Question 34

    We recommend you obtain commercial insurance which includes an amount to cover any excise duty payable in the event of theft or loss of your excisable products.

    If you are unable to account for products on which excise duty has not been paid, you must pay an amount equal to the excise duty payable on that product. For example, we consider products stolen from your premises as unaccounted for.

    Section I: Underbond product transfers

    Question 35

    Indicate if you will be moving goods from your premises to another licensed premise before the excise duty is paid.

    You must have a movement permission from us before you can do this. Applications for movement permissions are available at Moving excisable goods or by phoning us.

    Question 36

    Indicate if you intend to export excisable goods.

    You must have a movement permission from us if you intend to move excisable goods from your licensed premises for export. This permission gives you the right to move products from your licensed premises (or another licensed place) to a place of export.

    Before you export your product, you need to get a 'cleared' export declaration number (EDN) from the Australian Customs and Border Protection Service.

    Next step:

    Section J: Recording systems

    You need to maintain detailed and accurate records in order to meet your excise obligations and for our audit purposes. These should document your manufacturing processes, track and account for your stock and record payments of excise duty.

    See also:

    Question 37

    Indicate if your records include those items listed.

    Question 38

    Describe the record keeping system you intend to use for your excisable goods. Tell us if your record keeping system will be paper-based or electronic. For example, you may intend to use a manual ledger, a spreadsheet or a commercial accounting software package. If you will be using an electronic system tell us how you will back-up these records.

    We may ask you to provide sample pages of the record keeping system you intend to use.

    Next step:

    Section K: Declaration

    You, or a person who is authorised to act on your behalf, must sign the declaration. If the applicant is an entity, only a primary contact or a person authorised by a primary contact to act on behalf of the applicant (an authorised contact) may sign the declaration.

    If you lodge this application via Online services for business your myGovID will be accepted as your electronic signature. You will not need to sign the declaration on the application form.

    See also:

    Service standards

    When you lodge your application, you can expect a decision within 28 days of us receiving all the necessary information.

    If your application is incomplete, we will contact you for more information. If the information is not provided after a reasonable period of time, you must reapply.

    Before you lodge your application

    Make sure you have included:

    • the application form completed in full
    • completed Fit and proper person declaration (NAT 74815) forms
    • a copy of financial statements and/or business plan
    • an A4 size copy of the plan of the premises with the proposed area of manufacture clearly shaded (including location of tanks if required)
    • photographs of the premises and security measures
    • photographs of plant and equipment
    • certificates of calibration for storage vessels and measuring equipment to be used to determine excise liability.

    Lodging your application

    You can lodge your application online using Online services for business. Follow these steps:

    1. Fill in the application form
    2. Save the completed application as a PDF to your system
    3. Log in to Online services for business
    4. Select Communication and then Secure mail
    5. Select New
    6. Select View more topics and then Excise
    7. Select Alcohol, fuel and petroleum products, tobacco, duty free store from the Excise subject list
    8. Complete all required fields and attach the application and any additional documents
    9. Select Send.

    You will receive a receipt number once you've lodged your return.

    More information

    For more information about applying for an excise licence:

    If you would like to speak to us in a language other than English, phone the Translating and Interpreting Service on 13 14 50.

    If you have difficulty hearing or speaking on the phone, you can contact us through the National relay service (NRS)External Link using your preferred call option.

    Last modified: 11 Oct 2021QC 16932