Manufacturing Liquor

Manufacturing Liquor | Bestar

Manufacturing Liquor

The manufacturing of liquor in Singapore is primarily carried out within the framework of the Excise Factory Scheme. This scheme allows for the production and storage of liquor within a designated licensed area, offering benefits such as:

• Suspension of excise duty and GST: Excise duty and Goods and Services Tax (GST) are suspended as long as the liquor remains within the licensed premises.

• Flexibility in manufacturing and storage: Activities like bottling, blending, and compounding of intoxicating liquors are permitted within the excise factory.

To qualify for the Excise Factory Scheme, companies must meet certain criteria, including GST registration, a valid Customs Account, good compliance records, and a successful TradeFIRST assessment.

This scheme provides a conducive environment for businesses involved in the liquor industry to operate efficiently and cost-effectively within Singapore.

Excise Factory Scheme

The Excise Factory Scheme in Singapore allows for the manufacturing and storage of liquor within a designated licensed area. This scheme offers several benefits, including:   

• Suspension of excise duty and GST: Excise duty and Goods and Services Tax (GST) are suspended as long as the manufactured liquor remains within the licensed premises.   

• Flexibility in manufacturing and storage: Activities like bottling, blending, and compounding of intoxicating liquors are permitted within the excise factory.   

• Eligibility criteria: To qualify, companies must be GST-registered, have a valid Customs Account, maintain good compliance records, and undergo a TradeFIRST assessment to meet specific criteria.   

Essentially, the Excise Factory Scheme provides a framework for businesses involved in the liquor industry to operate efficiently and cost-effectively within Singapore.

Benefits of Excise Factory Scheme in Singapore

The Excise Factory Scheme in Singapore offers several advantages for businesses involved in the liquor industry:

• Cost savings: Suspension of excise duty and GST while the liquor remains within the licensed premises can significantly reduce operating costs.

• Enhanced efficiency: The ability to manufacture, bottle, blend, and store liquor within the same facility streamlines operations and improves productivity.

• Competitive advantage: The scheme enables businesses to offer competitive prices and remain profitable in the market.

• Product innovation: The flexibility provided by the scheme allows for experimentation and the development of new and innovative liquor products.

• Compliance with regulations: Operating within the framework of the Excise Factory Scheme ensures compliance with all relevant laws and regulations.

  
  

By taking advantage of the Excise Factory Scheme, businesses can establish a strong foothold in Singapore's liquor market and contribute to the growth of the industry.

Key Responsibilities

• Customs Compliance:

  
  

  • Accountable for all dutiable goods stored within the licensed premises.

  • Responsible for timely payment of excise duty on any unaccounted-for goods.

  • Declare all goods movements in and out of the licensed premises through TradeNet, adhering to all permit conditions.

  • Immediately report any discrepancies within the licensed premises to Singapore Customs.

  • Cooperate fully with Singapore Customs during investigations, audits, stock checks, and supervision operations, including providing necessary manpower and system access.

  • Strictly adhere to the Customs Act, Customs Regulations, and all licensing terms and conditions.

    
    

• Other Regulatory Compliance:

  
  

  • Obtain all necessary approvals from relevant authorities (e.g., for the storage of controlled goods, including dangerous goods).

    
    

• Inventory Management:

  
  

  • Maintain accurate and up-to-date inventory records and supporting documentation.

    
    

• Physical Security:

  
  

  • Implement and maintain robust security measures within the licensed premises.

  • Secure all entrances and exits when no goods movement is occurring.

    
    

• Operational Integrity:

  
  

  • Obtain prior approval from Singapore Customs for any structural alterations to the licensed premises.

Application Process

1. Self-Assessment: Begin by completing the appropriate TradeFIRST Self-Assessment Checklist based on your license type (EFS Micro-brewery/Micro-distillery or all others).

   
   

2. Gather Documents: Prepare the required supporting documents, including:

   
   

   • Accounting and Corporate Regulatory Authority (ACRA) BizFile Report

   • Audited financial statements for the past 3 years

   • Layout plan of the intended licensed premises (indicating entry/exit points, security features, and company address)

   • Title deed or tenancy agreement

   • Any other relevant documents

     
     

3. Submit Application Online: Apply for the Excise Factory Scheme online.

   
   

   • The Banker's Guarantee or Insurance Bond amount will be determined based on:

     • Projected maximum excise duty for new applicants (based on intended storage)

     • Average monthly excise duty for existing licensees (based on past 12 months)

       
       

4. Follow-up: Upon successful application, Singapore Customs will contact you to discuss the next steps.

Licence Fee

The annual licence fee varies with the type of activity, and is payable upon issuance of the licence.

Activity	Annual Licence Fee	minimum TradeFIRST Band to qualify
To ferment or manufacture ale, beer, stout or porter, where the projected annual production volume (in the case of an application for the issue of a licence) or the past annual production volume (in the case of an application for renewal of a licence) is —
(i) 1.8 million litres or more	$31,600	Enhanced
(ii) less than 1.8 million litres	$8,400	Standard
To distill, ferment or manufacture any other intoxicating liquors
(i) 400,000 litres or more	$23,500	Enhanced
(ii) less than 400,000 litres	$10,200	Standard
To bottle, blend, compound or vary intoxicating liquors in accordance with Section 66 of the Customs Act	$7,600	Standard

How Bestar can Help

Bestar can provide significant value to businesses involved in the manufacturing of liquor in Singapore, particularly those operating within the Excise Factory Scheme. Here's how:

1. Setting Up and Managing the Business:

• Company Incorporation: Bestar can assist in the incorporation of the liquor manufacturing business in Singapore, ensuring compliance with all legal and regulatory requirements.

• Excise Factory Scheme Application: Bestar can guide businesses through the application process for the Excise Factory Scheme, including preparing the necessary documentation and ensuring compliance with the scheme's requirements.

• Licensing and Permits: Bestar can help obtain the necessary licenses and permits required for the liquor manufacturing business, including those related to excise duty, storage, and distribution.

2. Financial and Accounting Support:

• Financial Advisory: Bestar can provide financial advice on setting up the Excise Factory, including capital budgeting, cost-benefit analysis, and risk assessment.

• Accounting and Bookkeeping: Bestar can manage the accounting and bookkeeping functions of the liquor manufacturing business, ensuring accurate financial records and compliance with accounting standards.   

• Tax Advisory: Bestar can provide expert tax advice on excise duty, GST, and other taxes applicable to the liquor manufacturing business, ensuring compliance and minimizing tax liabilities.   

3. Compliance and Regulatory Support:

• Regulatory Compliance: Bestar can help businesses navigate the complex regulatory landscape of the liquor industry in Singapore, ensuring compliance with all relevant laws and regulations.

4. Operational Efficiency:

• Inventory Management: Bestar can help implement efficient inventory management systems, ensuring accurate tracking of stock levels and minimizing losses.

5. HR and Payroll Services:

• Employment Pass Application: Bestar can assist in obtaining employment passes for foreign employees, ensuring compliance with immigration regulations.   

• Payroll Outsourcing: Bestar can manage the payroll processing, including salary calculations, tax deductions, and statutory contributions.   

By leveraging Bestar's expertise, liquor manufacturing businesses in Singapore can streamline operations, improve efficiency, and enhance their competitiveness in the market.

Request for Quote