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Edited version of your written advice
Authorisation Number: 1051238222113
Date of advice: 20 June 2017
Ruling
Subject: Product Classification
Question 1
Does your product meet the definition of 'beer’ as defined in the Schedule to the Excise Tariff Act 1921?
Answer
Yes, 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 2020
The scheme commences on:
1 July 2016
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You plan to manufacture a flavoured beverage (the product).
Your planned production methodology has been described.
The quantity of hops in the product will give the product an International Bitterness Units (IBU) measurement of not less than 4.0.
The product will contain not more than 4% by weight of sugars.
The flavourings will not add more than 0.5% alcohol to the volume of the final beverage.
Spirit distilled from beer will not be added at any time during the production process.
The product will contain more than 1.15% by volume of alcohol.
Relevant legislative provisions
Excise Tariff Act 1921 The Schedule
Reasons for decision
The Schedule to the Excise Tariff Act 1921 states:
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.
Therefore, for the product to be considered 'beer’, it must satisfy all the relevant paragraphs within the definition contained in the Schedule to the Excise Tariff Act 1921. If the product fails to satisfy at least one of the paragraphs, it will not be considered 'beer’.
Is the product a product of the yeast fermentation of an aqueous extract, being predominantly an aqueous extract of cereals, whether the cereals are malted or unmalted, and whether or not the aqueous extract contains other sources of carbohydrates?
The term 'predominantly’ is not a defined term within the excise legislation and therefore it takes its ordinary meaning. The Oxford Dictionary, [Online], viewed 20 June 2017, www.oxforddictionaries.com, defines predominantly as 'mainly; for the most part’.
The predominant ingredient in the product is malt cereal.
You will manufacture the product utilising a traditional brew house process. This will result in an aqueous solution, predominantly of malted cereal, to which yeast will be added and fermented prior to being transferred into bottles or kegs. Therefore, the product will satisfy the requirement of paragraph (a) of the definition of 'beer’ in the Schedule to the Excise Tariff Act 1921.
Does the product contain hops, or extracts of hops, such that the beverage has an IBU of not less than 4.0, or other bitters such that the beverage has as IBU of not less than 4.0?
During the production process, hops will be added to the product to achieve an IBU of not less than 4.0. Therefore, the product will satisfy the requirement of paragraph (b) of the definition of 'beer’ in the Schedule to the Excise Tariff Act 1921.
Does the product contain not more than 4% by weight of sugars?
The product will contain various sugars. The total weight of these in the final product sugars will not be more than 4%. Therefore, the product will satisfy the requirement of paragraph (c) of the definition of 'beer’ in the Schedule to the Excise Tariff Act 1921. Has the product had added to it, at any time, artificial sweetener?
The product will not have added to it at any time, artificial sweeteners. Therefore, the product will satisfy the requirement of paragraph (d) of the definition of 'beer’ in the Schedule to the Excise Tariff Act 1921.
If the product has added to it, at any time, other substances, including flavours that contain alcohol (other than spirit distilled from beer), did the alcohol add more than 0.5% to the total volume of the final beverage?
Although the product has added to it other substances, none of these substances contain alcohol. Therefore, the product will satisfy the requirement of paragraph (e) of the definition of beer in the Schedule to the Excise Tariff Act 1921.
If the product has added to it, at any time, spirit distilled from beer; did that spirit add more than 0.5% to the total volume of the final beverage?
The product will not have added to it any spirit distilled from beer. Therefore, the product will satisfy the requirement of paragraph (f) of the definition of beer in the Schedule to the Excise Tariff Act 1921.
Does the product contain more than 1.15% by volume of alcohol?
The product will contain more than 1.15% by volume of alcohol. Therefore, the product will satisfy the requirement of paragraph (g) of the definition of beer in the Schedule to the Excise Tariff Act 1921.
Conclusion
The product satisfied all the relevant paragraphs within the definition of 'beer’ in the Schedule to the Excise Tariff Act 1921 and therefore, the product will be considered a 'beer’ for the purposes of the Act.