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Edited version of private advice
Authorisation Number: 1012645988074
Ruling
Subject: WET Product Classification
Question
Is your product, an alcoholic beverage imported for sale by you in Australia, a fruit or vegetable wine under section 31-4 of the A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act)?
Answer
Yes, your product is a fruit or vegetable wine under section 31-4 of the WET Act.
This ruling applies for the following periods:
June 2014 onwards
Relevant facts and circumstances
• You, are registered for both the goods and services tax (GST) and wine equalisation tax (WET).
• You account for GST on an accruals basis.
• You purchase wine from ABC Pty Ltd for distribution in Australia.
• You import the wine you purchase from ABC Pty under quote.
• ABC (Overseas) has recently manufactured a new product 'xxx'.
• 'xxx' is manufactured from a blend of apple cider and grape wine.
• The grape wine has not had grape spirit or brandy added to it.
• Separately, the apple cider and the grape wine are 'wine' for the purposes of the WET Act.
• 'xxx' contains z% alc/vol.
• No ethyl alcohol from any other source is added.
• No substance giving colour or flavour is added.
• 'xxx' is currently manufactured and sold overseas.
• You intend to purchase 'xxx' from ABC Pty Ltd and distribute it in Australia.
Relevant legislative provisions
A New Tax System (Wine Equalisation Tax) Act 1999
A New Tax System (Wine Equalisation Tax) Act 1999 - Subdivision 31-A
A New Tax System (Wine Equalisation Tax) Act 1999 - Subsection 31-1(1)
A New Tax System (Wine Equalisation Tax) Act 1999 - Subsection 31-1(2)
A New Tax System (Wine Equalisation Tax) Act 1999 - Subsection 31-4
Reasons for decision
Summary
Yes, your product is a fruit or vegetable wine under section 31-4 of the WET Act.
Detailed reasoning
Wine is defined in section 33-1 of the WET Act as having the meaning given by Subdivision 31-A of the WET Act.
Section 31-1 in Subdivision 31-A of the WET Act defines wine to mean any of the following:
• grape wine;
• grape wine product;
• fruit or vegetable wine;
• cider or perry;
• mead;
• sake
Each of the products listed above is separately defined in the WET Act.
Apple cider
The apple cider is the product of the complete or partial fermentation of the juice of apples and is manufactured according to the normal cider manufacturing processes.
Grape Wine
The grape wine is the product of the complete or partial fermentation of the juice of grapes and is manufactured according to the normal grape wine making processes. It has not had grape spirit or brandy added to it at any time.
Blended apple cider and grape wine
Having regard to the wine definitions, your product falls for consideration under fruit or vegetable wine.
Fruit or vegetable wine is defined in section 31-4 of the WET Act to be a beverage that:
(a) is the product of the complete or partial fermentation of the juice or must of :
(i) fruit or vegetables; or
(ii) products derived solely from fruit or vegetables; and
(b) has not had added to it, at any time, ethyl alcohol from any other source, except as specified in the regulations; and
(c) has not had added to it, at any time, any liquor or substance that gives colour or flavour, except as specified in the regulations; and
(d) contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and
(e) complies with the requirements of the regulations made for the purposes of section 31-8, relating to fruit or vegetable wine.
Regulation 31-4.01 of the A New Tax System (Wine Equalisation Tax) Regulations 2000 (WET Regulations) sets out requirements relating to fruit or vegetable wine and provides that ethyl alcohol from grape spirit or neutral spirit may be added to fruit or vegetable wine. However, where spirit is added, the resulting beverage must contain between 15% alc/vol and 22% alc/vol inclusive.
The final blended product is considered to be the product of the complete or partial fermentation of apples and grapes.
It has not had added to it any ethyl alcohol from any other source and it has not had added to it any additional liquor or substance that gives colour or flavour.
The Commissioner considers that your product meets all of the requirements of the definition of fruit or vegetable wine set out above and is therefore wine for the purposes of the WET Act.
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