Private ruling: Excise - definition of beer
Date of advice: 10 December 2020
Published: March 2021
Ruling period: XX XXX 20XX to XX XXX 20XX
Date scheme commenced: XX XXX 20XX

Ruling: Q1: Do your products meet the definition of 'beer' as set out in the Schedule to the Excise Tariff Act 1921 (the Schedule)? | A1: Your products meet the definition of 'beer' as defined in the Schedule to the Excise Tariff Act 1921 .

Relevant facts and circumstances: You plan to manufacture three flavoured beverages (the products). Your planned production method has been provided. The products will have an International Bitterness Units (IBU) measurement of not less than 4.0. The products will not exceed 4.0% by weight of sugars. The products will not contain artificial sweetener. The flavourings will not add more than 0.5% alcohol to the total volume of the final beverages. Spirit distilled from beer will not be added at any time during the production process. The products will contain more than 1.15% by volume of alcohol.

Relevant legislative provisions: The Schedule to the Excise Tariff Act 1921

Reasons for decision: Summary: The reasons for decision are summarised below. The Schedule 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. | Detailed Reasoning - Product of the yeast fermentation of an aqueous extract, being predominantly an aqueous extract of cereals: The products you propose to produce are the products of the yeast fermentation of an aqueous extract, being predominantly an aqueous extract of cereals. Therefore, your products satisfy paragraph (a) of the definition of beer in the Schedule. | Detailed Reasoning - Has International Bitterness Units (IBU's) of not less than 4.0: Your products will have a minimum of 4.0 IBU's and therefore satisfy paragraph (b) of the definition of beer in the Schedule. | Detailed Reasoning - Contains no more than 4.0% by weight of sugars: The final products will not contain more than 4.0% by weight of sugars. Therefore, your products satisfy paragraph (c) of the definition of beer in the Schedule. | Detailed Reasoning - Has not had added to it, at any time, artificial sweetener: Your products will not contain any artificial sweetener and therefore satisfy paragraph (d) of the definition of beer in the Schedule. | Detailed Reasoning - Other substances containing alcohol do not add more than 0.5% to the total volume of the final beverage: The substances containing alcohol that will be added to your products will not add more than 0.5% to the total volume of the final products, hence satisfying paragraph (e) of the definition of beer in the Schedule. | Detailed Reasoning - Spirit distilled from beer does not add more than 0.5% to the total volume of the final beverage: Your products will not contain any spirit distilled from beer, and therefore satisfy paragraph (f) of the definition of beer in the Schedule. | Detailed Reasoning - Contains more than 1.15% ABV: Your final products will contain more than 1.15% ABV, hence they satisfy paragraph (g) of the definition of beer in the Schedule. Having satisfied all the paragraphs within the definition of beer in the Schedule, your products are considered 'beer' for the purposes of the definition.