AIR4220 - Alcoholic Ingredients Relief: Technical guidance: And what about 'alcopops'?

Traders who produce alcopops by dilution of essences are deemed to be producing made-wine n.e. 5.5 per cent (ie using a non-potable concentrate to make a drinkable alcoholic article on winery entered premises/warehouse premises). Any person who produces made-wine for sale must be licensed (ALDA s55 and X-5 paragraph 4.5). Removal of the made-wine from entered winery or approved warehouse premises to home use must be duty-paid. The procedure for movement/use of essences for alcopops manufacture should be as follows:

• essence producer/dealer removes essences to a made-wine maker’s warehouse without the need for W81 or equivalent document;
• the made-wine maker must then enter the essence into the approved business records, as a standard procedure;
• there is no definitive time when made-wine is deemed to be produced. Our policy has been that it is when the product exceeds 1.2 per cent ABV. In the case of alcopops manufacture, duty will be due on the strength and volume of the product when it is removed for home use.