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Edited version of your written advice
Authorisation Number: 1013093212553
Date of advice: 28 September 2016
Ruling
Subject: Excise - definition of beer
Question 1
Does your product meet the definition of 'beer' as defined in the Schedule to the Excise Tariff Act 1921?
Answer
Your product meets the definition of 'beer' as defined in the Schedule to the Excise Tariff Act 1921.
This ruling applies for the following periods:
1 July 2016 to 30 June 2019
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You plan to manufacture a flavoured beverage (the product).
Your planned production methodology is as follows:
• The aqueous extract is produced utilising the traditional brew house processes.
• The grist is made up of various ingredients.
• Hops are added at a certain stage.
• It is then cooled to 20oC and yeast strain is added.
• The brew is then transferred for fermentation to occur.
• The brew is filtered and ingredients are added
• The beverage is then carbonated.
You will add hops during the production process.
The product will have an International Bitterness Units (IBU's) of not less than 4.0.
The final product will not exceed X% weight of sugars.
During the production process you will add flavourings to the product. The flavourings will not contain any sugar and will not add more than X% alcohol to the volume of the final beverage.
You will not add any spirit distilled from beer at any time during the production process.
The product will contain more than X% by volume of alcohol.
Relevant legislative provisions
Excise Tariff Act 1921 The Schedule.
Reasons for decision
From 28 August 2009 the Schedule to the Excise Tariff Act 1921 provides that:
beer means a brewed beverage that:
(a) is the product of the yeast fermentation of an aqueous extract, being predominantly an aqueous extract of cereals:
(i) whether the cereals are malted or unmalted; and
(ii) whether or not the aqueous extract contains other sources of carbohydrates; and
(b) contains:
(i) hops, or extracts of hops, such that the beverage has international bitterness units of not less than 4.0; or
(ii) other bitters such that the beverage has a bitterness comparable to that of a beverage mentioned in subparagraph (i); and
(c) contains not more than 4.0% by weight of sugars; and
(d) has not had added to it, at any time, artificial sweetener; and
(e) may have had added to it, at any time, other substances, including flavours, but only if, in the case of substances that contain alcohol (other than spirit distilled from beer), the alcohol did not add more than 0.5% to the total volume of the final beverage; and
(f) may have had added to it, at any time, spirit distilled from beer, but only if that spirit did not add more than 0.5% to the total volume of the final beverage; and
(g) contains more than 1.15% by volume of alcohol.
The product you propose to produce is the product of the yeast fermentation of an aqueous extract of predominantly malt and wheat malt. Therefore your product satisfies the requirement of paragraph (a) of the definition of beer in the Excise Tariff Act 1921.
During the production process you will be adding hops to your product which will have not less than 4 IBU's. Therefore the product satisfies paragraph (b) of the definition of beer.
The final product will not contain more than X% by weight of sugars and will not have any artificial sweeteners added to it during the production process. Therefore your product satisfies paragraphs (c) and (d) of the definition.
During the production process you will add flavourings to the product. The addition of these flavourings will not add more than X% alcohol to the total volume of the final product, therefore satisfying paragraph (e) of the definition. The product also satisfies paragraph (f) as you will not add any spirit distilled from beer during the production process.
Your product satisfies paragraph (g) of the definition as the beverage will contain more than X% by volume of alcohol.
Having satisfied all of the paragraphs within the definition of beer, your product is considered a 'beer' for the purposes of the Excise Tariff Act 1921.
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