Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 20th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 171224
Dear [Client]:
Subject: EXCISE RULING
[Whether the premises meet the definition of brewery under the Excise Act]
Thank you for your […][letter of mm/dd/yyyy]. It was forwarded to Excise Duty Headquarters to respond. In the letter you explained that your brewing operations are expanding and as a result some aspects of brewing and packaging will take place in different locations.
All legislative references are to the Excise Act (Act) and the regulations therein, unless otherwise specified.
STATEMENT OF FACTS
Our understanding of the facts from your letter is as follows:
1. […][ACo] currently operates in […][Place X] at […][Location A], […][City 1, Province 1].
2. [ACo] now occupies additional […][space] […][ Place Y] of [Location A] which […][does not connect to] [Place X].
3. [ACo] proposes to conduct some brewing operations in [Place Y], including but not limited to mashing, lautering, fermentation, cellaring, packaging and sales.
4. Some brewing operations will still take place in [Place X].
5. Beer will be moved between [Place Y] and [Place X] by means of a pipeline on the roof of […][Location A]. By necessity the pipeline will be on the roofs of […][other places at Location A] which are rented or leased to other legal entities. We understand these legal entities are not related or associated to [ACo], are not licensed brewers under the Act nor alcohol licensees under the Excise Act, 2001, and there is no impediment from the owners of the building or the occupants […].
6. The pipeline will be a flexible hose with fittings at each end. Hoses can be connected to the fittings to direct beer to particular vessels according to need. Product can move in either direction through the pipeline.
7. Initially the pipeline will transfer fermented (not cellared) beer from [Place X] to [Place Y] for aging, cellaring and secondary fermentation. The product would then be moved back through the same pipeline for carbonization and packaging.
RULING REQUESTED
You have requested a ruling on whether connecting [Place Y] to [Place X] at [Location A], [City 1, Province 1] as described above would meet the definition of brewery in the Act.
RULING GIVEN
Based on the facts set out above, our review of your submitted diagram and process description, and of the related legislation and publications, we have determined that the proposed operations meet the definition of “brewery” in the Act. Therefore a single brewer’s licence is sufficient for [ACo]’s brewing operations located at [Location A], [City 1, Province 1].
Should one of the […][other places at Location A] over which the pipeline runs ever be occupied by either a brewer or an alcohol licensee under the Excise Act, 2001 this ruling will be void and another must be requested.
This ruling does not exclude [ACo] from meeting the usual licensing requirements under the Act, including inspection of premises.
EXPLANATION
Under section 4 of the Act,
"brewery" means any place or premises where any beer is manufactured, and all offices, granaries, mash-rooms, cooling-rooms, vaults, yards, cellars and store-rooms connected therewith or in which any material to be used in the manufacture of beer is kept or stored, where any process of manufacture is carried on, where any apparatus connected with that manufacture is kept or used or where any of the products of brewing or fermentation are kept or stored, shall be held to be included in and to form part of the brewery to which they are attached or appurtenant. (emphasis added): and
“brewer” means any person who conducts, works, occupies or carries on any brewery either personally or by an agent.
The range of activities and purposes that are included in the definition of brewery indicates that a brewery is a place where an entity that can perform many functions. A brewery is not limited to purely production activities; it includes related areas (e.g. storage). The definition takes care to provide that the various facilities do not have to be directly attached, though they should clearly be part of one particular operation.
The definition of “brewery” describes the activities [ACo] proposes.
We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal under the provisions of the Act, that there are no relevant changes in the future to the Act or to our interpretative policy, that you have fully described all the necessary facts for which you requested this ruling and there is no material change to the facilities or operations.
If you have any questions or require any clarification on the above matter, please call me at (613) 941-1497 or Joy Piepjohn, Manager, Excise Duty Operations – Alcohol at (613) 957-8642.
Yours truly,
Richard Crompton
Industry Sector Specialist
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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