MT
Second Schedule — EXCISE DUTY ACT
Second Schedule · EXCISE DUTY ACT
ALCOHOL AND ALCOHOLIC BEVERAGES
Description of excisable goods
BEER
by the actual alcoholic
strength by volume
expressed as percentage
If produced by small and independent breweries with an
annual production not exceeding two-hundred thousand by the actual alcoholic
(200,000) hL of beer.
strength by volume
expressed as percentage
P r o d u c t s c o n t a i n i n g a m i x tu r e of beer with non-
alcoholic drinks and beers not exceeding 3.5% of the actual by the alcoholic strength
alcoholic strength by volume.
by volume expressed as
percentage
The term "beer" covers any product falling within
C u s t o m s T a r i ff H e a d i n g N o . 2 2 0 3 or a n y p r o d u c t
containing a mixture of beer with non-alcoholic drinks
falling within Customs Tariff Heading No. 2206, in e i t h e r
c a s e w i t h an a c t u a l a l c o h o l i c s t r e n g t h by v o l u m e
exceeding 0.5% vol.
WINE OF FRESH GRAPES
1. If produced by independent small wine producers
which produce on average less than twenty-thousand
(20,000) hL of wine per year
2. The term "still wine" covers all products falling
within Customs Tariff Heading Nos. 2204, 2205 and 2206
except sparkling wine as defined in paragraph 2 below
EXCISE DUTY
-
which have an actual alcoholic strength by volume
exceeding 1.2% vol., but not exceeding 15% vol., provided
that the alcohol co n ta in ed in the finished product is
entirely of fermented origin;
-
which have an actual alcoholic strength by volume
exceeding 15% vol., and not exceeding 18% vol., provided
they have been produced without any enrichment and that
the alcohol contained in the finished product is entirely of
fermented origin.
3. The term "sparkling wine" covers all products
falling within CN codes 2204 10, 2204 21 06, 2204 21 07,
2204 21 08, 2204 21 09, 2204 29 10 and 2205 which
-
are contained in bottles with "mushroom stoppers"
held in place by ties or fastenings, or they have an excess
pressure due to carbon dioxide in solution of three (3) bar or
more;
-
have an actual alcoholic strength by volume
exceeding one point two per cent (1.2%) vol., but not
exceeding fifteen per cent (15%) vol., provided that the
alcohol contained in the finished product is entirely of
fermented origin.".
FERMENTED BEVERAGES
1. The term ‘still fermented beverages’ covers all
products falling within Customs Tariff Heading Nos. 2204
and 2205 but not falling under Wine of Fresh Grapes
above, and products falling within Customs Tariff Heading
No. 2206, except other sparkling fermented beverages as
defined in paragraph 2 below and any product covered
under Beer above
-
having an actual alcoholic strength by volume
exceeding 1.2% vol., but not exceeding 10% vol.,
-
having an actual alcoholic strength by volume
exceeding 10% but not exceeding 15% vol., provided that
the alcohol contained in the product is entirely of
fermented origin.
2. The term ‘sparkling fermented beverages’ covers
all products falling within Customs Tariff Heading No.
2206 00 30 as well as products falling within Customs
Tariff Heading Nos. 2204.10, 2204.21.10, 2204.29.10 and
2205 not mentioned under ‘Wine of Fresh Grapes’ above
which
-
are contained in bottles with 'mushroom stoppers'
held in place by ties or fastenings, or they have an excess
pressure due to carbon dioxide in solution of three bar or
more,
-
have an actual alcoholic strength by volume
exceeding 1.2% vol., but not exceeding 13% vol.,
EXCISE DUTY
-
have an actual alcoholic strength by volume
exceeding 13%, but not exceeding 15% vol., provided that
the alcohol contained in the product is entirely of
fermented origin.
3. The term "other sparkling fermented beverages"
covers all products falling within CN codes 2206 00 31 and
2206 00 39 as well as products falling within CN codes 2204
10, 2204 21 06, 2204 21 07, 2204 21 08, 2204 21 09, 2204 29
10 and 2205 excluding still wine and sparkling wine which
–
are contained in bottles with "mushroom stoppers"
held in place by ties or fastenings, or they have an excess
pressure due to carbon dioxide in solution of three (3) bar
or more;
–
have an actual alcoholic strength by volume
exceeding one point two per cent (1.2%) vol., but not
exceeding thirteen per cent (13%) vol.;
–
have an actual alcoholic strength by volume
exceeding thirteen per cent (13%) vol., but not exceeding
fifteen per cent (15%) vol., provided that the alcohol
contained in the product is entirely of fermented origin.
INTERMEDIATE PRODUCTS
The term ‘intermediate products’ covers all products of
an actual alcoholic strength by volume exceeding 1.2%
vol., but not exceeding 22% vol., and falling within
Customs Tariff Heading Nos. 2204, 2205 and 2206 but not
mentioned under Beer or Wine of Fresh Grapes or
Fermented Beverages above.
NOTE: Still fermented beverages falling within the
scope of paragraph 1 under Fermented Beverages which
have an actual alcoholic strength exceeding 5.5% vol., and
which are not entirely of fermented origin, and any
sparkling fermented beverages falling within the scope of
paragraph 2 under Fermented Beverages which have an
actual alcoholic strength exceeding 8.5% vol., and which
are not entirely of fermented origin are to be treated as
Intermediate Products.
ETHYL ALCOHOL
litre
The term 'ethyl alcohol' covers
-
all products with an actual alcoholic strength by
volume exceeding 1.2% volume which fall within Customs
Tariff Heading Nos. 2207 and 2208, even when those
products form part of a product which falls within another
chapter of the Customs Tariff,
-
products of Customs Tariff Heading Nos. 2204,
2205 and 2206 which have an actual alcoholic strength by
volume exceeding 22% vol.,
EXCISE DUTY
-
potable spirits containing products, whether in
solution or not.
EXEMPTIONS
The products described in this Schedule are exempt
from the payment of excise duty under such conditions
which the Minister may prescribe for the purpose of
ensuring the correct and straightforward application of
such exemptions and of preventing any evasion, avoidance
or abuse
1. a.
when distributed in the form of alcohol which
has been completely denatured in accordance with the
requirements of the Member State where it has been released
for consumption, where such requirements were duly notified
in writing and authorised. The Commissioner shall apply
Chapter V of Council Directive (EU) 2020/262 of 19
December 2019 laying down the general arrangements for
excise duty (recast);
b.
when used as part of the manufacturing process
of any product not for human consumption, provided the
alcohol has been denatured in accordance with the
requirements of any Member State for the given use.
T h i s e x e m p ti o n sh a l l a p pl y wh e n su c h d e na tu r e d
alcohol
– has been incorporated into the product not for
human consumption; or
– is used for maintenance and cleaning of the
manufacturing equipment used for this particular
manufacturing process;
– The Commissioner shall apply Chapter IV of Council
Directive (EU) 2020/262 of 19 December 2019 laying down
the general arrangements for excise duty (recast) to
movements of denatured alcohol that has not yet been
incorporated into a product that is not for human
consumption;
c.
when used for the production of vinegar
falling within Customs Tariff Heading No. 2209;
d.
when used in the production of medicines
referred to in Directives 2001/82/EC and 2001/83/ EC;
e.
when used for the production of flavours for
the preparation of foodstuffs and non-alcoholic beverages
with an alcohol strength not exceeding 1.2% vol.;
f.
when used directly or as a constituent of semi-
finished products for the production of foodstuffs, filled or
otherwise, provided that in each case the alcoholic content
does not exceed 8.5 litres of pure alcohol per 100 kg of the
product for chocolates, and 5 litres of pure alcohol per 100
kg of the product for other products;
g.
alcoholic beverages to be sold for immediate
consumption on board ships or aircraft travelling to
another EU country.
EXCISE DUTY
2. a.
as samples for analysis, for necessary
production tests, or for scientific purposes;
b.
for scientific research;
c.
for medical purposes in hospitals and
pharmacies;
d.
in a manufacturing process provided that the
final product does not contain alcohol;
e.
in the manufacture of a component product
which is not subject to excise duty;
f.
in the manufacture of food supplements defined
by Directive 2002/46/EC of the European Parliament and of
the Council containing ethyl alcohol, if the unit packet of the
food supplement released for consumption does not exceed
0,15 litres and food supplements are placed on the market
pursuant to Article 10 of Directive 2002/46/EC.
3. when used by the armed forces of any Member State,
other than Malta, for the use of those forces, for the civilian
staff accompanying them or for supplying their messes or
canteens when such forces take part in a defence effort
carried out for the implementation of a Union activity under
the common security and defence policy.
DENATURANTS approved by the Commissioner
1. In the manufacture of Mineralised Methylated
Spirit the denaturant should be composed of
Base
- 90% vol. ethanol
- 9.5% vol. wood naptha, and
- 0.5% vol. crude pyridine
To each 1,000 litres of which is added
- 3.75 litres of mineral naptha (petroleum oil) and
- 1.50 ppm of methyl violet.
2. In the manufacture of Industrial Methylated Spirit
the denaturant should be composed of
Base
- 90% vol. ethanol
- 10% vol. wood naptha
To each 1,000 litres of which is added
- 0.5% vol. crude pyridine
3. In the manufacture of other denaturant spirits the
denaturant should be composed of
(i) when
for
industrial
use
(excluding
pharmaceutical industry)
10 ppm denatonium benzoate irrespective of the
alcoholic strength of the alcohol to be denatured
(ii) when for surgical or pharmaceutical use
EXCISE DUTY
Either
-
90% vol ethanol
-
10% vol isopropyl alcohol
(This type of denatured alcohol is normally
used in pharmaceutical industrial plants)
or
-
95% vol ethanol
-
5% vol wood naphta
To each 100 litres of which is added
-
0.5% vol methyl salicylate
-
2.0% vol diethyl phthalate
-
2.5% castor oil
(This type of denatured alcohol is commercially
referred to as Surgical Spirit)