22 October 2003 Excise Interpretation 47715 - Off-site Storage for Ferment-on-premises or U-vin

Please note that the following documents, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ces documents, bien qu'exacts au moment émis, peuvent ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

Thank you for your e-mail XXXXX in which you requested approval for the use of an off-site storage facility for your ferment-on-premises operation or u-vin.

For the record your planned procedure includes: the customer starts the wine in your store; you transport the product in your own vehicle to your secondary site for storage; and the product is brought back to the store for bottling. The planned procedure does not include: handling retail sales out of the secondary site; letting the customer bottle at the storage site; or transporting beer to the secondary site unless there is a change in federal legislation.

Effective July 1, 2003 the Excise Act, 2001 (the Act) came into effect and the ferment-on-premises (FOP) or u-vin industry became subject to that legislation. The Act imposes specific requirements and limitations on the industry. The FOP registration limits the FOP registrant to possessing bulk wine at their FOP premises that was produced by an individual at those premises. A FOP registrant's facility is limited to the location or locations where individuals produce and package wine.

The Act imposes strict controls on the possession and transportation of all bulk alcohol, including wine. Paragraph 70(2)(f) of the Act permits the FOP registrant to possess bulk wine on behalf of an individual but section 15 of the Act limits this possession to the FOP registrant's facility. There is no provision under the Act for the FOP registrant to transport bulk wine.

Your request has been reviewed and we are unable to approve the use of a secondary site for storage of bulk wine. The Act does not permit a ferment-on-premises (FOP) registrant to transport bulk wine on an individual's behalf. Only the individual who owns the product is authorized to transport the bulk wine and this authority cannot be transferred to another person.

If you require further assistance in this matter, please contact Joy Piepjohn at (613) 954-5897 or myself at (613) 954-4208.

Yours sincerely,

Preston Gallant, CGA
Manager
Excise Duty Operations
Excise Duties and Taxes Division