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 and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 190468
[Addressee]
Dear [Client]:
Subject: EXCISE RULING
Licence requirement – malt based alcohol beverage
Thank you for your [mm/dd/yyyy] fax to our […] regional office that was forwarded to us for reply.
STATEMENT OF FACTS
Our understanding of the facts are as follows:
1. […]([…][XYZ]) proposes to develop a beverage […]: […][Production method]
2. The final absolute ethyl alcohol by volume will be […][<11.9] percent.
RULING REQUESTED
[XYZ] would like to know the excise licence required to produce this beverage.
RULING GIVEN
Based on the facts set out above and our review of the definitions of “wine” under section 2 of the Excise Act, 2001, and “beer or malt liquor” under section 4 the Excise Act, we rule that a Brewer’s Licence is required to produce the […] beverage as it falls within the definition of “beer or malt liquor”.
EXPLANATION
“Beer or malt liquor” means any product (other than wine, as defined in section 2 of the Excise Act, 2001) that is:
(a) a fermented liquor that is brewed in whole or in part from malt, grain or any saccharine matter without any process of distillation and that has an alcoholic strength not in excess of 11.9% absolute ethyl alcohol by volume, or
(b) beer concentrate.
[XYZ’s] proposed beverage falls within the definition of “beer or malt liquor” in section 4 of the Excise Act because the beverage:
1. is a fermented liquor brewed from barley;
2. does not involve any process of distillation;
3. has an alcoholic strength less than 11.9% of absolute ethyl alcohol by volume; and
4. is not “wine” as defined in section 2 of the Excise Act, 2001.
The […] beverage may qualify for the rates of excise duty in section 170.1 and set out in Part II.1 of the Schedule because it is brewed in Canada.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the Excise Act, regulations or the CRA’s interpretative policy affect its validity; all relevant facts and transactions have been fully and accurately disclosed; and there is no change to the information provided that would alter the beverage in a manner so that it no longer falls within the definition of “beer or malt liquor”.
If you require clarification with respect to any of the issues discussed in this letter, please call me at 613-670-7205 or Tim Krawchuk, Manager, Excise Duty Operations – Alcohol at 613-670-7280.
Yours truly,
Ellen Hall
Senior Rulings Officer
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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