77FDisposal of beer by Collector if licence ceases to be in force or is varied

77F  Disposal of beer by Collector if licence ceases to be in force or is varied  (1) If, after the expiration of one month after a brewery licence ceases to be in force or is varied to no longer cover a particular brewery, beer on which duty has not been paid remains at a place that is no longer covered by the licence, then the Collector may sell the beer and any containers and packages that contain the beer.  (2) If, in the opinion of the Collector, any such beer is unsaleable or is unlikely to realize on sale an amount equal to the duty payable on it together with the expenses of its removal, storage and sale, the Collector may destroy it.  (3) For the purposes of exercising his or her powers under subsection (1) or (2), the Collector may, after the expiration of the period referred to in subsection (1), cause the beer, and any containers and packages in which it is contained, to be removed from the premises referred to in that subsection to such other place as the Collector thinks fit. 77FA  Excise duty to be paid according to labelled alcoholic strength of certain beverages  (a) an alcoholic beverage is entered for home consumption; and  (b) the percentage by volume of the alcoholic content of the alcoholic beverage indicated on the label of the beverage exceeds the actual percentage by volume of the alcoholic content of the beverage; excise duty is to be charged according to the percentage by volume of alcoholic content indicated on the label.  (2) If the manufacturer of an alcoholic beverage of a particular kind enters the beverage for home consumption in a labelled form and also in an unlabelled form, then, for the purposes of subsection (1), alcoholic beverage of that kind that is entered for home consumption in an unlabelled form is to be treated as if it had been labelled by the manufacturer as having the same percentage by volume of alcoholic content as alcoholic beverage of that kind entered for home consumption by the manufacturer in a labelled form. 77FC  Repackaged beer  (a) beer classified to subitem 1.2, 1.6 or 1.11 of the Schedule to the Excise Tariff Act 1921 is entered for home consumption; and  (b) the beer is repackaged into sealed individual containers:  (i) of less than 8 litres; or  (ii) of at least 8 litres but not exceeding 48 litres and not designed to connect to a pressurised gas delivery system, pump delivery system or other system prescribed for the purposes of subitem 1.1, 1.5 or 1.10 of that Schedule (if any); then, for the purposes of this Act, that repackaging is taken to be the manufacture of beer (subject to subsection (2)). Note 1: Subitems 1.2, 1.6 and 1.11 of that Schedule set out the rates of duty for beer packaged in individual containers exceeding 48 litres or individual containers, of at least 8 litres but not exceeding 48 litres, and designed to connect to a pressurised gas delivery system, pump delivery system or other prescribed system (if any). Note 2: Subitems 1.1, 1.5 and 1.10 of that Schedule set out the rates of duty for beer packaged in individual containers of less than 8 litres or individual containers, of at least 8 litres but not exceeding 48 litres, and not designed to connect to a pressurised gas delivery system, pump delivery system or other prescribed system (if any).  (2) Subsection (1) does not apply in relation to the repackaging of the first 10,000 litres of beer, at particular premises in a financial year, in relation to which the following conditions are satisfied:  (a) the beer is repackaged into exempt beer containers for the purposes of retail sale;  (b) the retail sale occurs immediately after the repackaging of the beer.  (3) For the purposes of subsection (2), an exempt beer container is a sealed individual container, of no more than 2 litres, that is not pressurised. Part VIIAA—Special provisions relating to spirits   77FD  Spirit for fortifying Australian wine or Australian grape must Grant of approval  (1) For the purposes of subitem 3.5 of the Schedule to the Excise Tariff Act 1921, the CEO may grant a person a written approval to use spirit for fortifying Australian wine or Australian grape must.  (2) The approval must be for:  (a) the use of a one‑off specified quantity of spirit; or  (b) the use of a specified quantity of spirit in a calendar month or a calendar year. Note: See also section 77FH (about payment of duty equivalent if the spirit is not used for the approved purpose). Conditions  (3) The CEO must specify in an approval any conditions to which the approval is subject. Approval not a legislative instrument  (4) An approval under subsection (1) is not a legislative instrument. 77FE  Spirit for an industrial, manufacturing, scientific, medical, veterinary or educational purpose—class determinations  (1) The CEO may, by legislative instrument, determine a class of persons for the purposes of subitem 3.6 of the Schedule to the Excise Tariff Act 1921.  (2) For the purposes of that subitem, the determination may also specify a quantity of spirit that a person included in the class may use in a calendar month or a calendar year. Note: See also section 77FH (about payment of duty equivalent if spirit is delivered to a person included in such a class and the person does not use the spirit for an industrial, manufacturing, scientific, medical, veterinary or educational purpose). 77FF  Spirit for an industrial, manufacturing, scientific, medical, veterinary or educational purpose—specific approvals Grant of approval  (1) For the purposes of subitem 3.7 of the Schedule to the Excise Tariff Act 1921, the CEO may grant a person a written approval to use spirit for a specified industrial, manufacturing, scientific, medical, veterinary or educational purpose.  (2) The approval must be for:  (a) the use of a one‑off specified quantity of spirit; or  (b) the use of a specified quantity of spirit in a calendar month or a calendar year. Note: See also section 77FH (about payment of duty equivalent if the spirit is not used for the approved purpose). Conditions  (3) The CEO must specify in an approval any conditions to which the approval is subject. Approval not a legislative instrument  (4) An approval under subsection (1) is not a legislative instrument. Guidelines  (5) The CEO must, by legislative instrument, develop guidelines that he or she must have regard to when deciding whether or not to grant an approval under subsection (1). 77FG  Denatured spirits  (1) For the purposes of subitem 3.8 of the Schedule to the Excise Tariff Act 1921, the CEO may, by legislative instrument, determine a formula for the denaturing of spirits.  (2) The CEO must give the greatest weight to the protection of the revenue in determining a formula under subsection (1). 77FH  When an amount is payable on spirit covered by section 77FD, 77FE or 77FF  (1) If spirit classified to subitem 3.5 or 3.7 of the Schedule to the Excise Tariff Act 1921 is delivered for home consumption, a Collector may request, in writing, the person holding the approval concerned to account to the satisfaction of the Collector that the spirit has been used for the purpose specified in the approval.  (2) If spirit classified to subitem 3.6 of the Schedule to the Excise Tariff Act 1921 is:  (a) delivered for home consumption; and  (b) delivered to a person who is included in a class determined under section 77FE of this Act; a Collector may request, in writing, the person to account to the satisfaction of the Collector that the spirit has been used for an industrial, manufacturing, scientific, medical, veterinary or educational purpose. Payment of duty equivalent  (3) If a person does not account as requested under subsection (1) or (2), the person must, on demand in writing made by a Collector, pay to the Commonwealth an amount equal to the amount of the duty that would have been payable on the spirit if:  (a) there had been no approval or determination (as the case requires); and  (b) the spirit had been entered for home consumption on the day on which the Collector made the demand. Note 1: Subitems 3.1, 3.2 and 3.10 of the Schedule to the Excise Tariff Act 1921 set out the non‑free rates of duty for spirit. Note 2: For provisions about collection and recovery of the amount, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953. No effect on other liabilities  (4) This section does not affect the liability of a person arising under or because of: Request or demand not a legislative instrument  (5) The following are not legislative instruments:  (a) a request under subsection (1) or (2);  (b) a demand under subsection (3). 77FI  Delivery from CEO’s control of brandy, whisky or rum  (1) Brandy, whisky or rum manufactured in Australia must not be delivered from the CEO’s control unless it has been matured by storage in wood for at least 2 years.  (2) In this section: brandy means a spirit distilled from grape wine in such a manner that the spirit possesses the taste, aroma and other characteristics generally attributed to brandy. grape wine has the same meaning as in Subdivision 31‑A of the A New Tax System (Wine Equalisation Tax) Act 1999. rum means a spirit obtained by the distillation of a fermented liquor derived from the products of sugar cane, being distillation carried out in such a manner that the spirit possesses the taste, aroma and other characteristics generally attributed to rum. whisky means a spirit obtained by the distillation of a fermented liquor of a mash of cereal grain in such a manner that the spirit possesses the taste, aroma and other characteristics generally attributed to whisky. 77FJ  Person must not abstract denaturing substances in spirit classified to subitem 3.8  (1) A person commits an offence if:  (a) spirit classified to subitem 3.8 of the Schedule to the Excise Tariff Act 1921 is delivered for home consumption; and  (b) the person abstracts the whole or a part of a denaturing substance from the spirit; and  (c) the person has not been given permission by the CEO to abstract the whole or the part of the denaturing substance.  (2) The CEO may, in writing, give a person permission to abstract the whole or a part of a denaturing substance for the purposes of paragraph (1)(c).  (3) A permission under subsection (2) is not a legislative instrument. 77FK  Offence in relation to stills  (1) A person commits an offence if:  (a) the person does any of the following things:  (i) makes or commences to make any still;  (ii) removes, sets up or erects any still;  (iii) sells or otherwise disposes of, or purchases or otherwise acquires any still, either by itself or with other property, or as part of any premises;  (iv) imports any still;  (v) has possession, custody or control of any still; and  (b) the still is of a capacity exceeding 5 litres; and  (c) the person is not a licensed manufacturer; and  (d) the person has not been given permission by the CEO to do the thing.  (2) Subsection (1) does not apply to an act done by an officer in the course of performing a function or exercising a power under this Act or the Excise Tariff Act 1921. Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code).  (3) The CEO may, in writing, give a person permission to do a thing mentioned in paragraph (1)(a).  (4) A permission under subsection (3) is not a legislative instrument. 77FL  Offence in relation to describing spirits as “old” or “very old”  (1) A person commits an offence if the person:  (a) does either of the following:  (i) describes any spirit as “old”, or in a way which could reasonably lead to the belief that the spirit has been matured for at least 5 years;  (ii) describes any spirit as “very old”, or in a way which could reasonably lead to the belief that the spirit has been matured for at least 10 years; and  (b) does so in relation to trade or commerce between Australia and another country, between 2 States, between a State and a Territory or between 2 Territories.  (2) Subparagraph (1)(a)(i) does not apply if the spirit has been matured by storage in wood for at least 5 years. Note: A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code).  (3) Subparagraph (1)(a)(ii) does not apply if the spirit has been matured by storage in wood for at least 10 years. Note: A defendant bears an evidential burden in relation to the matter in subsection (3) (see subsection 13.3(3) of the Criminal Code).  (4) Absolute liability applies to paragraph (1)(b). 77FM  Spirit blending is to be treated as manufacture  (1) Subject to subsection (2), for greater certainty so far as concerns the application of the provisions of this Act, spirit blending to produce spirit is taken to constitute the manufacture of that spirit.  (2) For the purposes of this Act, spirit blending to produce spirit is taken not to constitute the manufacture of that spirit if the spirit blending occurred in circumstances specified in an instrument under subsection (3).  (3) The CEO may, by legislative instrument, specify circumstances for the purposes of subsection (2).  (4) Subsection (1) does not imply that, in the absence of such a provision, the blending of substances (whether spirit or not) would not constitute the manufacture of the substance produced by the blending. Part VIIB—Special provisions relating to fuel   77G  Fuel blending is to be treated as manufacture  (1) For greater certainty so far as concerns the application of the provisions of this Act, fuel blending to produce goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 is taken to constitute the manufacture of those goods.  (2) Subsection (1) does not imply that, in the absence of such a provision, the blending of substances (whether fuel products or not) would not constitute the manufacture of the substance produced by the blending. fuel product means:  (a) any excisable goods classified to item 10, 15, 20 or 21 of the Schedule to the Excise Tariff Act 1921; or  (b) any imported goods that would be classified to item 10 or 15 of that Schedule if they were manufactured in Australia. 77H  Blending exemptions  (1) Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if:  (a) both:  (i) for each of the eligible goods and other substances, excise duty or a duty of Customs has been paid (unless the applicable duty when entered for home consumption was nil); and  (ii) apart from any denatured ethanol for use as fuel in an internal combustion engine, or biodiesel, the rate of each of those duties is the same; or  (b) the goods are covered by a determination in force under subsection 95‑5(1) of the Fuel Tax Act 2006.  (2) However, subsection (1) does not apply if any of the eligible goods or other substances on which excise duty or a duty of Customs has been paid are taxable fuel for which any entity has been entitled to a fuel tax credit under the Fuel Tax Act 2006. Matters to be disregarded in determining whether same rate  (2AA) For the purposes of paragraph (1)(a), in determining whether excise duty or a duty of Customs has been paid at the same rate on all the eligible goods and the other substances (if any), disregard:  (a) any indexation of rates under section 6A of the Excise Tariff Act 1921; and  (b) any indexation of rates under section 19 of the Customs Tariff Act 1995; and  (c) any changes of rates under the Excise Tariff Act 1921 as a result of amendments of that Act by Part 1 of Schedule 1 to the Excise Tariff Amendment (Fuel Indexation) Act 2015; and  (d) the effect of sections 19AAB and 19AAC of the Customs Tariff Act 1995. Blends of a relevant fuel that is not subject to remission  (2A) Goods that are the product of the blending of amounts of one kind of relevant fuel are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if both of the following apply:  (a) none of the amounts of the relevant fuel are subject to a remission (either in full or in part) of excise duty or a duty of Customs;  (b) excise duty or a duty of Customs that is payable on the amounts of the relevant fuel has been paid. Blends of LPG or liquefied natural gas that is subject to remission or not subject to duty  (2B) Goods that are the product of the blending of amounts of one kind of relevant fuel that is either LPG or liquefied natural gas are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if, for each amount in the blend, either of the following applies to the amount:  (a) the amount is subject to a remission (whether in full or in part) of excise duty or a duty of Customs on the grounds that the amount is not used, or intended for use, in an internal combustion engine in either a motor vehicle or a vessel;  (b) the amount is not subject to excise duty or a duty of Customs because the amount was manufactured, produced or imported before 1 December 2011. Legislative instrument  (3) Goods that are the product of the blending of 1 or more eligible goods (with or without other substances) are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if the circumstances specified in an instrument under subsection (4) exist.  (4) The CEO may, by legislative instrument, specify circumstances for the purposes of subsection (3). Definitions eligible goods means goods covered by paragraph 10(a), (b), (c), (d), (da), (db), (dc), (e) or (f) of the Schedule to the Excise Tariff Act 1921. relevant fuel means:  (a) gasoline for use in aircraft; or  (b) kerosene for use in aircraft; or  (c) LPG; or  (d) liquefied natural gas; or  (e) compressed natural gas that is classified to subitem 10.19C of the Schedule to the Excise Tariff Act 1921. 77HA  Compressed natural gas that is exempt from excise duty  (1) Compressed natural gas is exempt from excise duty if any of the following apply:  (a) the gas was compressed for use other than as a fuel for a motor vehicle;  (b) the gas was compressed other than in the course of carrying on an enterprise (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999);  (c) the gas was compressed for use as a fuel for a motor vehicle that:  (i) is designed merely to move goods with a forklift and is for use primarily off public roads; or  (ii) is of a kind prescribed by the regulations for the purposes of this subparagraph;  (d) the gas is exempt from excise duty under subsection (2).  (2) Compressed natural gas is exempt from excise duty if:  (a) the gas was compressed at residential premises (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999); and  (b) the rate at which natural gas can be compressed at those premises is not more than:  (i) the amount of compressed natural gas per hour prescribed by the regulations; or  (ii) if no amount is prescribed—10 kilograms of compressed natural gas per hour; and  (c) the gas is not sold or otherwise supplied in the course of carrying on an enterprise (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999). 77HB  Liquefied petroleum gas and liquefied natural gas that is exempt from excise duty   Liquefied petroleum gas or liquefied natural gas is exempt from excise duty if:  (a) the liquefied petroleum gas or liquefied natural gas is used by a licensed manufacturer on premises covered by the manufacturer licence; and  (b) the use is in the process of manufacturing:  (i) petroleum condensate or stabilised crude petroleum oil; or  (ii) liquefied petroleum gas, liquefied natural gas or other hydrocarbons; and  (c) the manufacturer manufactures the goods referred to in paragraph (b) in accordance with the licence.