Excise goods

What do you need to know?

Alcohol

• Alcohol-related Customs-controlled area (CCA) licensees must now file an excise entry or return for every agreed entry period, even if it’s a nil return
• The aim of this is to remind customers to file returns.

Fuel

• Fuel excise has a new collection point at the tank farm gantry, to cover additional volume created from blending at tank farms
• A formula sets out how to calculate the volume of new excisable fuel, from blending operations at the tank farms.

Tobacco

• The definition of manufacture now includes curing
• People can manufacture five kg of grow-your-own tobacco each year for personal use without needing a CCA licence or needing to pay excise duty. This was previously 15 kg.

Overall

The licensee and person who has day-to-day responsibility for the CCA needs to be a “fit and proper” person – this includes senior managers and licensee directors.

Who does this impact?

• Manufacturers of excisable goods (tobacco, fuel and alcohol)
• Growers of tobacco.

What is the impact?

• CCA licensees need to put in a nil return if they have not released goods for home consumption within the period
• New licence applications will need a declaration in support of the licence, also known as a fit and proper person declaration, and a Ministry of Justice criminal record. Senior managers and directors of the entity may also be asked to provide this documentation
• The fuel excise changes will create more clarity and transparency about the calculation of new excisable fuel at tank farms
• A tobacco grower who cures tobacco in excess of the personal use exemption will need to be licensed.

More information

• the Act education pages
• Excise web pages