The Alcohol Industry - Excise Technical Guidelines (current to 30 June 2006)

Chapter 5 - Record Keeping

This document has been archived. It is current only to 30 June 2006.

Section 1 Introduction

1.1 Acronyms used in this chapter

AIG Alcohol Industry Group

CEO Chief Executive Officer (the Commissioner of Taxation)

EDN Export declaration number

SVR Rectified grape spirit ( spiritus vini rectificatus ).

1.2 Foreword

If you want to know more about Excise go to our website at www.ato.gov.au .

Section 2 Record Keeping Requirements for Breweries

2.1 Overview

Section 50 of the Excise Act requires that licensed manufacturers must keep records as directed by the Tax Office and retain any records for such period as the Tax Office directs and produce the records to the Tax Office on demand ¹ .

A licensee is required to maintain adequate records to account for all excisable goods in their possession, custody or control and to properly acquit any excise liability on those goods. While the format of these records is flexible, the records must record each stage of production from the receipt of raw materials through to the delivery of the finished product.

The volume of alcohol contained in goods is taken to be the volume that would be the volume if the alcohol was measured at 20 ° C ² .

Excise manufacturers are required to correct volumes to 20 ° C at the following stages:

• for bulk receipts of alcohol from any outside source
• for bulk deliveries of alcohol to any outside destination, and
• at the header tank or bottling tank immediately prior to packaging.

2.2 Raw materials register

A licensee is required to record in a raw materials register details of all raw materials received into the brewery. They must be able to match the movement of raw materials into the brewery with related invoices and delivery documents.

A licensee is required to record the movement of raw materials out of storage to production. The minimum details required include:

• type of raw material
• opening stock quantity
• date raw material received
• quantity of raw material received
• date raw material used
• quantity of raw material used, and
• closing stock quantity.

2.3 Recipes

Maintaining recipe sheets is standard practice for breweries. The Tax Office uses these as a reference to establish the quantities of raw materials used to manufacture each particular beer. Recipes are also used to establish whether or not a product is 'beer' as defined in The Schedule to the Excise Tariff Act or whether it would be classified as an 'other excisable beverage'.

The minimum details required include:

• beer type
• malt type and quantity
• mash ingredients (type and quantity)
• hops details (type and quantity), and
• other kettle additions (type and quantity).

2.4 Brew house records

The minimum details required include:

• the type of beer being manufactured
• details of lauter tun, mash tun, kettle, and whirlpool
• the date on which batch manufacture started
• quantities of materials used (such as malt and hops)
• volume of water added to the kettle
• volume of liquid (wort) transferred to fermentation tanks
• details of fermentation tanks used, and
• details of losses incurred during transfer of product.

2.5 Fermentation and storage

The minimum details required include:

• date on which liquid (wort) was transferred to fermentation tanks
• volume of liquid (wort) transferred to fermentation tanks
• quantity of yeast added to the liquid (wort)
• details of specific gravity measurements during fermentation
• dates of specific gravity measurements during fermentation
• temperature at which specific gravity measurements were made, and
• fermentation tank details.

2.6 Bright beer register

Once the fermentation is complete a licensee is required to maintain a record of quantities of product transferred into the 'bright beer' tanks. Bright beer is an industry term for beer which has been matured, carbonated and filtered and is ready for packaging and drinking.

Minimum details required include:

• date product transferred into storage tanks
• quantity of product transferred into storage tanks
• whether the product was filtered during transfer
• date product moved out of storage tanks for packaging
• quantity of product moved out of storage tanks for packaging
• type of product in tanks, and
• details of identifying marks/numbers of tanks used.

2.7 Packaged product register

A licensee is required to record details of all packaged product.

Minimum details required include:

• product type
• package details (for example type and size of container)
• opening stock details and date
• quantities of packaged product as a running total
• strength of packaged product
• date on which product moved into store
• quantities moved into the packaged product store
• date on which product moved out of store, and
• quantities moved out of the packaged product store.

A licensee must be able to match any movement of packaged product with invoices, external delivery documents and records of any quantities used on brewery premises.

2.8 Other records

Other brewery records which are required to be maintained include:

• details of operational gains and losses
• details of packaging losses
• sales invoices and delivery documents
• copies of excise returns
• under bond movement documents, and
• refund and remission approvals.

Section 3 Record Keeping Requirements for Distilleries

The Distillation Act ³ provides that the Tax Office may examine and take copies of, or extracts from, all books and accounts required to be kept by the distiller for the information of the Tax Office, and of all books kept by the distiller in relation to the distillery or the making or sale of spirits.

3.1 Still House Records

The still house is the production centre where fermented base distillation materials are input (charged) to the still, the output of the still being distilled alcohol (spirits).

Spirits may require further work within the still house before they are ready for transfer to the spirit store. The separation of still house stocks from spirit store stocks allows losses incurred during still house operations to be identified and treated as production losses which can be assessed relatively liberally ⁴ , provided that the licensee maintains adequate records to account for them.

The main records which should be kept in the still house are:

• notice book
• comparison account, and
• still house stock register.

3.1.1 Notice book

This is a record of all materials charged to the still (inputs). Minimum details required include:

consecutive number for each charge

• date each charge was made to the still
• type of material (for example distillation wine)
• identification of the charge vessel used (for example WC #3)
• results for each dip of the charge vessel in centimetres immediately prior to charging the still
• corresponding volumes in litres of charge material in each charge vessel
• the alcoholic strength of the charge material, as tested by laboratory analysis (for example   12.5% alcohol by volume)
• total amount of alcohol in the charge, in Lals (volume in litres multiplied by alcoholic strength), and
• identification of the still to which each charge was made (for example Pot #2).

3.1.2 Comparison account

This is a record of all spirits distilled from the still (outputs). Minimum details required include:

• the relevant charge numbers from the Notice Book (in the case of a continuous still this information may not be available)
• the date on which the spirit was produced
• the type of spirit produced. For example cane spirit or rectified grape spirit (SVR)
• identification of the still from which the spirit was produced
• identification of each receiving vessel. For example feints to FR4, SVR to SR1)
• results for each dip (in centimetres) of all receiving vessels
• temperature of the spirit at time of dipping
• corresponding volumes in litres and Lals of all spirits received into the receiving vessels, and
• the alcoholic strength of all spirit produced at 200C including feints, as tested by laboratory analysis.

A comparison account may be maintained as a separate record or the above details may be incorporated into a combined notice book/comparison account record.

3.1.3 Still house stock register

This is a record of all still house spirit vessels (including feints receivers) and their alcohol contents.

Minimum details required include:

• identification number of the vessel
• stock survey details pre and post each operation including
  • the date
  • dip result in centimetres
  • volume in litres
  • strength at a temperature of 20 ⁰ C, and
  • volume in Lals, and
• operational loss or gain in Lals for each operation, calculated as the difference between the pre and post operation Lals.

A licensee is required to record all spirit movements into and out of each still house vessel in the still house stock register.

3.1.4 Other still house records

In addition to the notice book, comparison account and still house stock register, a licensee is required to keep records of operations within the still house, such as the recycling and cleaning up of spirit (for example ion exchange).

Some losses will normally occur during these operations. While still house production losses are not normally subject to call up of duty, adequate records should be kept to account for these losses.

3.2 Alcohol strength analysis

A licensee is required to maintain a separate record of analysis for spirit store and warehouse stock where charge material, spirits or waste from the still are tested for alcoholic strength.

This record should include:

• date of the test
• vessel identification number
• dip result in centimetres
• details of material tested, and
• alcoholic strength of the sample tested at 200C.

These records may be in the form of a still house test book or laboratory analysis records.

3.3 Spirit runnings

When the spirit has been re-worked and no further cleaning up is required, it is run from the still house stock into the bonded stock. From this point losses are more stringently assessed.

A licensee is required to keep a record of all stock run from the still house into bonded stock.

Details to be recorded on the spirit runnings record are:

Originating (still house) vessel

• date of the spirit run
• vessel from which the spirit was run
• type of spirit
• pre-operation dip in centimetres
• post-operation dip in centimetres
• calculation of the volume transferred (in litres)
• temperature of the spirit
• alcoholic strength of the spirit at 200C, and
• volume transferred in Lals.

Receiving (bond) vessel

• vessel to which spirit was run
• type of spirit
• pre-operation dip in centimetres
• post-operation dip in centimetres
• calculation of the volume received in litres
• temperature of the spirit
• alcoholic strength of the spirit at 200C
• volume received in Lals, and
• operational loss or gain in Lals.

In practice, there may be no physical movement in running the spirit from the still house to bonded stocks. The spirit may remain in the same multipurpose vessel. When holding still house stock the vessel is shown as a still house vessel and when holding bonded spirit store stock it is shown as a spirit store vessel.

3.4 Destruction of feints

Feints are waste products of distillation and include such products as methanol and fusel oils. A licensee is required to account for feints as they contain alcohol which makes them subject to excise control (subsection 6(1) of the Distillation Act says that feints means spirits received into the feints receiver). Feints must also be included in calculations of distillation efficiency to obtain an accurate efficiency figure.

Feints are stored in designated vessels known as feints receivers. A licensee will normally collect feints over a period of time until storage capacity limits are reached or it is necessary for other reasons to dispose of them. A licensee must apply to the Tax Office for approval to destroy feints. A licensee should therefore complete an application for remission and forward it to the Alcohol Industry Group (AIG) for approval. On receipt of approval under section 78 of the Excise Act, in accordance with the circumstances provided in regulation 50 of the Excise Regulations, they may destroy the feints and write that quantity off their records. They may apply to the AIG for continuing approval where the destruction of feints is an on-going issue.

3.5 Stocktakes and distillation efficiency

A licensee is required to carry out a stocktake of all stock on hand, including still house stock and feints.

For bulk stock in tanks and vats they are required to dip the tanks or vats, test the spirit strength (if they have not tested it within the previous month) and record stock details, noting losses and gains in the relevant stock records. They should record still house stock only in the still house stock register .

They are required to calculate still efficiency on a regular basis to ensure that all available alcohol in charge material is being recovered at an acceptable rate. Efficiency is to be expressed as a percentage of the total Lals available. The formula is:

closing stock + total spirit run to bond + feints destroyed x 100

opening stock + total Lals charged to still.

3.6 Spirit store records

The spirit store is the part of the distillery where spirit is held that has been worked in the still house to the point where no further distillation or cleaning up is required. Any bulk spirit received from an external supplier is also received into the spirit store. Storage vessels in the bulk spirit store include wooden vats, stainless steel tanks and either plastic or steel drums.

Spirit is normally held in the spirit store as follows:

• for the purposes of further production, including the following approved operations
  • blending
  • reducing
  • clarifying
  • bottling
  • casking (warehousing)
  • methylating
  • colouring, and
  • flavouring
• for the maturation of spirits in wood
  • prior to movement into the spirit warehouse (cask storage)
  • after maturation in casks in the spirit warehouse has been completed and the cask stock has been revatted back into the spirit store, and
• for storage before delivery for home consumption.

3.7 Vat register

This is the record of all spirit store vessels and the quantity of spirit contained in each vessel. A licensee is required to maintain a separate record, similar to the still house stock register, for each storage vessel. They are further required to survey each vessel before and after each operation to determine and record volumes in Lals and to measure and record temperatures.

They are required to correct volumes to 20 ⁰ C at the following stages:

• on receipt of spirit from any outside source
• on delivery of spirit to any outside source, and
• at the header tank or bottling vat immediately prior to packaging.

Some licensees choose to correct volumes to 20 ⁰ C throughout the manufacturing process. There is no obligation to correct volumes other than at the three stages mentioned above. However where a licensee's records are not required to be corrected to 20 ⁰ C, they must record the ambient temperature for each operation in the vat register or the still house records.

The v at register should include the following details:

• the identification number of the vessel
• stock survey details pre and post each operation including the date, dip in centimetres, volume in litres, strength at 200C, temperature and volume in Lals, and
• the operational loss or gain in Lals for each operation, calculated as the difference between the pre and post operation Lals .

Losses and gains are to be recorded against the receiving vessel.

The vat register is therefore a record of:

• all spirit movements into and out of each vat in the spirit store
• all spirit operations in the store, and
• all stocks held in the store.

A licensee is required to verify the accuracy of the vat register periodically by stocktake, normally monthly, but at least quarterly.

For bulk stock in the spirit store the same principles apply as for a still house stock take (that is dipping and strength testing).

3.8 Operations notices

Operations notices provide written directions to distillery staff of the work that is to be done.

By means of an operations notice a licensee may direct how much spirit is required for a particular operation and from which vat it is to be drawn, which vessels are to be used and the nature of the operation. Distillery staff should use operations notices to record details such as dips and temperatures for transfer into the vat register, cask account or other relevant records.

3.9 Receipts

Before accepting a delivery of bulk spirit and updating stock records (for example the vat register), a licensee is required to check the goods received.

For spirits received by road tanker they are required to:

• check that seals are intact
• check the dip compartments and record the measurement converted to litres by referring to dip charts
• take temperature readings for each compartment
• correct litre volumes to 200C
• take samples from each compartment and measure alcohol strengths
• correct strengths to 200C and calculate and record the actual Lals received
• record any difference between the surveyed quantity (in Lals) and the supplier's details on the delivery document. This is the transit loss/gain. A licensee must advise the Tax Office as soon as practicable of any abnormal loss at this point.
• record in stock records details of the actual Lals received
• re-measure the quantity received after the spirit has been transferred into distillery receiving vessels, and
• record the transfer loss or gain in the stock records against the receiving vessel. This figure is the difference between the quantity signed for as received and the quantity measured in the receiving vat.

For spirits received by drum a licensee is required to:

• check that seals are intact
• weigh the drums and establish gross weights
• deduct tare weights to establish net weights of spirit contents
• draw samples and test strength, corrected to 200C
• establish contents in litres by referring to density tables (using apparent strength as tested)
• establish contents in Lals (add obscuration if required)
• record transit loss or gain on the delivery document (they must advise the Tax Office as soon as practicable of any abnormal loss at this point), and
• record the actual quantity received in stock records.

3.10 Deliveries

The recording process for ex-distillery deliveries is the reverse of the receipts procedure outlined above. All ex-distillery deliveries must be volume corrected to 20 ° C.

A licensee may only move spirits under bond with the permission of the Tax Office (see chapter four for details of movement permissions). Under bond movement of excisable goods may only be made between places specified in the permission. Exporters of under bond excisable product must obtain from the Tax Office an export movement permission (SMP or CMP) to move the goods under bond to a specified place for export prior to approaching Customs for an authority to export (that is a valid Export Declaration Number (EDN)).

A licensee must maintain a record of deliveries of spirit from the spirit store as follows:

• name and address of the supplier
• name and address of the consignee
• date of delivery from the distillery
• type of delivery vessel (for example, drums, bulk tanker, bottles)
• volume in litres (corrected to 200C for bulk tankers), alcohol strength, quantity in Lals, and
• type of spirit.

3.11 Bottling operations records

Under bond excisable spirit may only be packaged at licensed premises.

Bulk spirit cannot be duty paid before packaging.

Following blending, clarifying, colouring or flavouring, the volume of spirit in the bottling tank must be corrected to 20 ⁰ C before commencing the bottling process.

The alcohol strength of the spirit must be calculated and recorded either at the header tank before bottling or by sampling at the bottling line.

Bottling operations records must include:

• quantity in litres (at 200C) and Lals of spirit delivered from the header tank
• strength of the spirit in the header tank
• number and size of bottles or cans
• total litres, strength and Lals of packaged product
• total litres, strength and Lals of catchings (losses), and
• reconciliation of Lals delivered from the header tank and Lals packaged and resultant losses.

3.12 Packaged stock records

Packaged stock records, commonly referred to as the case account, are records of all packaged stock held. Such records must show the number of cartons plus the following details:

• product line identification, total quantity, package size and number per carton for each packaged goods line
• receipts into the case account of packaged stock from bottling or of under bond stock from other licensees
• under bond deliveries from the case account to other licensees for duty payment or for export
• dates when stock is received, delivered or surveyed, and
• stocktake details.

3.13 Spirit warehouse records

Excise legislation prescribes that brandy, rum and whisky must be matured by storage in wood for a period of not less than two years ⁵ . The maturation area of a distillery is referred to as the spirit warehouse.

Storage in wood can be either in large wooden vats or in wooden casks and barrels. A licensee must record the date the spirit is put into wood, taking into account any period when the spirit is temporarily held in non-wooden vessels. Failure to maintain accurate records may mean that the date when the spirit has reached the required maturation age cannot be properly calculated.

Usually, maturing spirit is held in wooden casks to impart greater wood character. The transfer of the spirit from vats to casks, storage for an extended period and its subsequent return back into vats (called revattal) all incur losses. Therefore a licensee must maintain detailed records of quantities delivered from vats, quantities received into casks within the warehousing operations, and vice-versa for revattal.

The principal records for the spirit warehouse are the warehousing book that records details of all transfers from vats to cask storage, and the revattal book that records details of all spirit transferred from casks back to vat storage.

3.14 Cask storage methods

There are three acceptable methods by which spirit may be held in casks. They are the conventional method, the in situ method and the batching method. In each case a measured quantity is withdrawn from the full cask measure to allow for possible expansion. Once the spirit has been sent to cask storage it should remain untouched until revattal.

Contrary to other distillery operations a licensee must record loss or gain variations incurred in warehousing operations, where the spirit is transferred from vat to cask storage, against the delivery vessel, unless they maintain a separate cask account (the cask equivalent of the vat register).

Regardless of which method they use, a licensee must record the date of the warehousing operation and the date of the revattal operation. The acceptability of cask storage losses is determined from these dates (see also discussion in chapter 3 section 5.2.1).

3.15 Procedures for the conventional method

3.15.1 Warehousing

A licensee must:

• establish the quantity in litres and Lals from the delivery vat and record it in the vat register
• number the required casks consecutively

if the cask contents are to be measured by weight then

• weigh the casks empty
• fill and weigh the casks and mark tare and gross weights on each cask, and
• establish fill contents in litres and Lals for each cask.

If the cask contents are not measured by weight, measure the cask contents by flowmeter.

Record the details of each cask contents and the date in the warehousing book. Reconcile the total quantity (in Lals) warehoused in casks against the total quantity delivered from vats, calculate the operational gain or loss and record this against the delivery vat.

3.15.2 Revattal

A licensee must:

• take a sample of the cask contents and test for strength, noting any variations
• survey the receiving vat prior to operation to establish litre and Lals contents
• pump the contents of the casks for revattal into a receiving vat
• survey the receiving vat again to establish total quantity in Lals received from casks, noting also dip, temperature and litre volume
• reconcile revatted Lals quantity against the warehoused Lals quantity
• record details of casks revatted and note the date in the revattal book and the vat register
• calculate revattal loss and record in the revattal book and the vat register against the receiving vat.

The advantage of this method is that each cask can be treated as a separate entity for storage purposes. However it is labour intensive and not commonly used.

3.16 Procedures for the in situ method

3.16.1 Warehousing

• A licensee must:

• establish the quantity in litres and Lals from the delivering vat and record details in the vat register
• measure the capacity of individual casks (normally by flowmeter)
• number the casks consecutively, mark with the predetermined capacity, then fill the cask
• complete the details of each cask and contents and record the date in the warehousing book.
• reconcile the total quantity in Lals warehoused in casks against total quantity delivered from vats and calculate the operational gain or loss.

A licensee must fill each stack as a complete entity. Therefore they must survey the delivery vat for each stack. The advantage of this method is that once cask capacities have been established this information can be used for all subsequent warehousing operations for which those casks are used. The casks can be left stacked up without the need to take down the stack each time the casks are filled. As individual cask contents are known, each cask can be treated as a separate entity for storage purposes if required.

3.16.2 Revattal

The revattal procedure is the same as that outlined for the conventional method.

3.17 Procedures for the Batching Method

3.17.1 Warehousing

Batches of up to 30 casks may be filled by this method. A licensee must

• establish the quantity in litres and Lals from the delivering vat and record details in the vat register
• accept this quantity as the total quantity delivered into the casks
• divide the total quantity by the number of casks to give an average fill
• record the average fill in warehousing records as the contents of each cask in the batch and note the date, and
• identify batches and casks by sequential numbering systems.

3.17.2 Revattal

The revattal procedure is the same as outlined under the conventional method. However each batch must be revatted as a whole.

This is the simplest and least labour intensive cask storage methods. However a licensee may only use this method subject to written approval from the Tax Office.

As with the in-situ method, casks can be left stacked between fills. Each batch is treated as a separate entity for storage purposes and as such must be revatted as a whole.

3.18 Operational losses and gains

A licensee must record losses and gains incurred in still house and spirit store operations (where product is moved from one bulk storage vessel to another) against the receiving vessel. The only exception is when spirit is transferred to a vessel that is outside the spirit store, such as:

• warehousing into casks
• deliveries to other licensees or premises, or
• transfers to packaging.

In each of the above cases a licensee must record operational losses or gains against the delivery vessel.

3.19 Abnormal losses

A licensee is required to advise the Tax Office as soon as practicable when they incur losses that are outside normal losses for that type of operation. They are required to retain evidence that may substantiate the loss, such as broken bottlenecks or caps, photographs, or police/insurance reports. They should present these to the Tax Office when requested.

3.20 Stocktakes

A licensee is required to carry out stocktakes on a regular basis to establish the accuracy of stock records, detect omissions or errors in stock records, and identify security issues such as theft, plant and equipment problems.

They should carry out stocktakes on a floor-to-book basis. They are required to dip bulk storage vessels, record temperatures, measure volumes in litres and calculate Lals. Where they have not checked alcohol strength within the preceding three months, they are required to re-test and record alcohol strength. Stock records such as the still house and vat registers must then be updated.

A licensee is required to check and reconcile packaged stock against the case account. Duty is payable on packaged stock that cannot be accounted for to the satisfaction of the Tax Office. In some circumstances, they may offset stock shortages against stock surpluses (see chapter 3, section 10). They must refer the matter to the Tax Office for advice or further action.

A licensee should carry out regular stocktakes on a monthly basis, or more frequently if considered necessary. They are required to advise the Tax Office as soon as practicable if they find any discrepancies in bulk spirit stocks beyond normal loss parameters. For each bulk storage vessel, they should reset cumulative loss or gain figures to zero in their stock records after the stock take.

A licensee is liable for the payment of any excise duty which would have been payable on stock that has been lost, stolen or that they cannot account for to the satisfaction of the Tax Office. They must report full details of the matter to the Tax Office who will advise what action is required.

3.21 Duty payment

A licensee is required to keep the following records to substantiate duty payments:

• detailed invoices for all goods subject to duty payment including
• description of each excisable product line
• number of packages
• volume of each container
• alcohol content
• date of invoice
• date of delivery out of the distillery, and
• supplier and delivery addresses, and
• copies of excise returns on which payment has been made.

Section 4 Record Keeping Requirements for Manufacturers of Liqueurs and other Excisable Beverages

The Excise Act requires that licensed manufacturers must keep records as the CEO directs, retain any records for such period as the Tax Office directs and produce the records to the Tax Office on demand ⁶ .

A manufacturer of liqueurs and other excisable beverages is required to maintain records to satisfactorily account for all excisable goods in their possession, custody or control. While the format of these records is flexible, the records should record each stage of production from the receipt of raw materials through to the delivery of the finished product.

The volume of alcohol contained in goods is taken to be the volume that would be the volume if the alcohol was measured at 20 ° C ⁷ .

A manufacturer is required to correct volumes to 20 ° C at the following stages:

• on receipt of bulk spirit from any outside source
• on delivery of bulk spirit to any outside destination , and
• at the header tank or bottling tank immediately prior to packaging.

In order to do so they are required to keep the following records:

A spirit account , including the following details

• quantity in litres of spirit received
• date spirit received
• strength of spirit received
• type of spirit received
• quantity in litres of spirit transferred to manufacturing account, and
• date of transfer of spirit to manufacturing account

A manufacturing account , including the following details

• batch number
• date
• quantity of spirit and strength transferred from spirit account
• ingredients (as per approved formulae)
• quantity in litres and strength of product manufactured
• quantity in litres transferred to case account, and
• details of any losses/gains

A case account , including the following details

• quantity in litres received from manufacturing account
• quantity in litres bottled (number of cases, number and size of bottles per case)
• bottling run number and date
• details of any losses/gains
• details of delivery document (excise return, SMP, MP or EDN), and
• date of delivery.

Section 5 Record Keeping Requirements for Concessional Spirit Permit Holders

Regulation 142 of the Excise Regulations allows that the Tax Office may give approval for the delivery of spirit for industrial or manufacturing purposes approved by the Tax Office.

Regulation 148 of the Excise Regulations provides that every person receiving spirit in pursuance of regulation 142, in quantities exceeding 25 litres per month, must keep records in accordance with form 21 of the receipt and disposal of the spirit.

Regulation 149 of the Excise Regulations provides that all spirit that is delivered under regulation 142 remain subject to Tax Office control until used for the approved purposes.

Universities, technical colleges and other educational institutions are required to keep records of spirit use in accordance with regulation 158, and not regulation 148 ⁸ . Regulation 158 does not require a form 21.

All permit holders are required to keep records to account for concessional spirit to verify that the spirit has been used in accordance with approved purposes.

A concessional spirit reseller is not required to keep records other than normal commercial documentation provided those records include:

• quantity and alcoholic strength of spirit received, delivered or sold
• individual sales showing
  • name and address of purchaser
  • permit number of purchaser, certificate registration number of practitioner, or name of secondary school, and
  • quantity and alcoholic strength of spirit sold
• quantity and alcoholic strength of stock on hand
• details of all spirit from the time of receipt, through break bulk to final repackaging (for resellers who repack spirits received in bulk containers), and
• details of all losses relating to repackaging, plus the final number and size of the new packages. The reseller should then record the packaged product details in stock records.

Spirit manufacturers and end-users are also not required to maintain any prescribed recording system provided that their records enable them to fully account for the disposal of spirit or their use in accordance with an approved purpose.

Final accounting for the end use of concessional spirit rests with the end-user. The Tax Office may require an end-user to keep records additional to normal commercial records if the end-user has insufficient internal stock controls in place or the records which are kept do not allow the end-user to properly account for the spirit.

5.1 Usage of Spirit for Fortifying Wine

A fortifier is required to record the following details for each fortification:

• date and fortification identification number
• operations/cellar note number (this may not be used in smaller wineries)
• wine details including
  • litres of wine
  • baum é 9 of grape must 10
  • baum é of fermented wine, and
  • alcoholic strength of wine
• spirit usage details including
  • litres of spirit used, and
  • alcoholic strength of spirit used
• fortified wine details, including
  • litres of fortified wine produced
  • alcoholic strength of fortified wine, and
  • baum é of fortified wine

The Schedule: Account Fortifying Spirit Usage form (Appendix 9.4 in chapter 9) is a suitable format for use by permit holders.

Section 6 Record Keeping Requirements for Excise Storage Licensees

The Excise Act ¹¹ requires that a proprietor of an approved place (that is the premises specified in a storage licence) must keep records as the Tax Office directs, retain any records for such period as the Tax Office directs and produce the records to the Tax Office on demand.

The holder of an excise storage licence is required to keep records that show:

• details of the goods received into their licensed premises for storage
• details of the goods dispatched from their licensed premises
• if repacking, details of any losses or wastage incurred during the repacking process, and
• any other losses or gains of excisable product.

The volume of alcohol contained in goods is taken to be the volume that would be the volume if the alcohol was measured at 20 ° C ¹² .

Excise storage licensees are required to correct volumes to 20 ° C at the following stages:

• on receipt of bulk alcohol from any outside source
• on delivery of bulk alcohol to any outside destination, and
• at the header tank or bottling tank immediately prior to packaging.

An excise storage licence holder's records must be sufficiently detailed to enable them to satisfactorily account for all excisable goods which they receive into and dispatches from their licensed premises.

1 Section 50 of the Excise Act

2 The Schedule to the Excise Tariff Act

3 Section 60 of the Distillation Act.

4 See part 4.2.1 in Chapter 3.

5 Section 12 of the Spirits Act 1906.

6 Section 50 of the Excise Act.

7 The Schedule to the Excise Tariff Act

8 Regulation 160A provides that a reference to universities in regulation 158 includes technical colleges and other educational institutions.

9 A measurement of the sugar content in grapes.

10 New wine; the unfermented juice as pressed from the grape or other fruit.

11 Section 50 of the Excise Act.

12 The Schedule to the Excise Tariff Act.

ATO references:
NO NAT 14790-04.2006