BY FAX/POST/E-MAIL GOVERNMENT OF ODISHA EXCISE DEPARTMENT ee No AVeel Ex, dated <<} <> 3' \\ II-Ex-160/2018 From Shri P.K, Panda, Additional Secretary to Government. To The Excise Commissioner, Odisha Cuttack. Sub: Excise Fee, Duty and Margin Structure along with Regulatory Guidelines for the year-2019-20. Sir, I am directed to invite a reference to your Letter No. 07/(confidential) dated 18.02.2019 and to say that Government, after careful consideration, have been pleased to approve the Excise Fee, Excise Duty and Margin Structure for the first four months of the year 2019-20 (1.4.2019 to 31.7.2019). The license of FL ‘OFF’, CL and OS shops shall be renewed for a Period of four months only i.e. till 31 July, 2019. The licenses of production units, wholesale and other retail shops may be renewed for one year as their license fees are prescribed on annual basis. State Government shall review the excise fee, excise duty, margin structure and regulatory guidelines as enclosed to this letter before 31° July, 2019. The regulatory guidelines issued during the year 2018-19 shall continue with such modifications and additions as indicated. You are, therefore, requested to take necessary action accordingly. Encl: As above Yours Un Additional Sectetary jovernment H{2a0l5Memo No. \\ ow JExDated -| > - Copy forwarded to the Secretary, Board of Revenue, Odisha, Cuttack/All Collectors/All EDCs/All Supdts. of Excise for information and necessary action. bot Additional Secretary ernment Memo No. _\\ ‘= _™) _yexpated “| 5° \’ Filet Copy forwarded to the Private Secretary to Hon’ble Minister, Excise / Private Secretary to Chief Secretary, Odisha / P.S. to DC-cum-ACS, Odisha for kind information of Hon’ble Minister, Excise/ Chief Secretary, Odisha / DC- cum-ACS, Odisha. Additional Secretary to Government Memo. \X GY Jexpated -\4 “FlD{aoly Copy forwarded to the Principal Secretary to Government, Finance Department for information and necessary action. Additional Secretary to |e Memo No._\\ &'S_jex pated Ad: 4, Hafas 5 ta, Copy forwarded to the Managing Director, OSBCI Bhubaneswar for information and necessary action. Additional sere Uh Memo No. \\SS ex pated ad FI> 3015 Copy forwarded to the Head aoe Portal, Center, Secretariat Building for information and necessary action. Additional Secretary to Government FlatasisGOVERNMENT OF ODISHA EXCISE DEPARTMENT [Excise fee, Excise Duty and Margin Structure along with Regulatory Guidelines w.e.f. 01.04.2019] 1. PREAMBLE These guidelines related to Excise fee, Excise Duty and Margin Structure along with Regulatory aspects aims at striking a balance between three key objectives: Plugging revenue gap through appropriate policy &enforcement measures -Ensuring supply of legitimate goods to meet consumer demand and minimize the social cost of consumption ¢. Responsible: -Creating awareness among people on impact of alcohol abuse and inculcating a sense of responsibility among consumers These guidelines shall be in force from 01.04.2019 to 31.07.2019, State Government shall review the guidelines before 31.07.2019. 1.1 Salient features These guidelines seek to improve the efficiency of processes associated with manufacture, import, export, transport & sale of alcoholic beverages while attaching due priority to health & well-being Of the citizens of the State. The key features are as follows: 1. Keeping health of consumers in mind, State has decided that manufacturing of high strength Country Liquor (CL) of 40 UP (34.28% v/v) should gradually shift towards lower strength of SO UP (28.57% v/v) & 60 UP (22.85% v/v). Aska Cooperative Sugar Industries Limited (ACSIL) currently manufacturing 40 UP CL should also start manufacturing lower strength CL of 50 & 60 UP; and completely move towards manufacturing of these low strength Cl at the earliest. 2. AS part of Make-In-Odisha initiative, State would facilitate new investment into the State, as well as the higher capacity utilization of manufacturing units within the State. Therefore, export & transport levies have been rationalized for alcoholic-beverages. Further with the aim of new investment related to establishment of ENA/ GNS manufacturing units in the State, transportation fee, export fee & Grain utilization fee related to ENA/ GNS is rationalized. Investment into manufacturing units in the State as well as higher capacity utilization of existing units should bring in more revenue as well as job opportunities to the State.3. To encourage lighter alcoholic ks & wean consumers away from strong alcoholic drinks, Micro-Breweries & Draught Beer policies have been redesigned. This would also provide investment opportunities to entrepreneurs in the State. To continue with State’s vision on responsible approach towards drinking, the taxation of India made low strength drinks is kept unchanged, whereas taxation on strong Beer/hard liquor is increased. 4. MGQ structure has been further rationalized; considering Licensee's average lifting in last 4 years. 5. To prevent incidences of 1D liquor manufacturing, tighter regulatory & taxation measures have been prescribed for Mohua flower trade. Further, taking consumer health along with drinking experience as factor, standardization of Country Liquor strength in Out-Still shops is also done. 1.2 Structure of the Guidelines; The document has been divided in to three parts for better appreciation. Part A: Lists all the fees (Excise license fee/application fee/registration fee/penalty etc.) covering production, wholesale and retail trade in alcoholic beverages. Part B: Lists the Excise duties/ Countervailing duties/ Vend Fee on alcoholic beverages along with administered profit margins of retails Part C: Lists key regulatory measures » diese2. PART- A This section lists various fees related to application, renewal, registration etc. imposed on manufacturers/ suppliers, wholesalers & retailers. To clarify, Country Liquor is the terminology used for liquor which does not fall under the category of Beer, Foreign Liquor (including India Made Foreign Liquor/ Ready-To-Drink/ Low-Alcoholic-Beverages) and Wine. ENA based Country Liquor manufactured by private players as well as by ACSIL fall under the definition of Country Liquor (CL) sold through OSBCL. Liquor made from Mohua flower in Out-still units & sold through Out-Still shops shall also fall under the category of Country Liquor (manufactured from Mohua flowers). 2.1 All Types of Application fees, Registration fees & Penalties su FEE TYPE (non-refundable) ‘Amount() 1 | Application fee for granting new/ renewal of License for Brewery/Winery/ Distillery/ Bottling 11,00,000 units in the State 2__| Application fee for granting new/ renewal of License for a Micro-Brewery 30,000 3 | Application fee for granting new/ renewal of Licenses for trading of molasses 40,000 ‘Application fee in respect of Licenses for new renewal of uns using molasses for purposes 25,000 4 | other than trading §5_| Application fee for label registration per label per annum (forall ypes of alcoholic beverages) 5,000 ‘Application fee in respect of new/ renewal Foreign Liquor ‘OFF Shops, Forelgn Liquor ‘ON 7,00,000 © | Shops (ll categories), Country Liquor shops and Out Still units 7_ | Application fee for new/renewal of Miltary Canteen Licenses 10,000 ‘| APblication fee for new renewel Bhang, Tan, Pochwai shops 2,000 ‘9 _| Annual Composite Label registration fee per annum for Foreign Liquor ‘OFF Shops and 25,000 Country Liquor shops (per annum per shop for sale of all brands through the shop) ‘Annual User registration fee for FL OFF Shops (including military canteens) & Cl Shops 10,000 10 ‘Annual Composite Label registration fee for manufacturing unit/ supplier for exporting IMFL 20,000 11_| (incl, Wine, LAB/ RTD)/Beer outside the State (per annum per supplier forall export brands) ‘Application fee obtaining NOC/Extension of NOC/permission for establishment of 75,000 12 | Brewery/Winery/Distillery/Bottling units ete, Penalty with fine on FLOFF shops for non - supply of cash memo or charging above MRP to 33 | the consumers. 1,00,000 14 | Penalty on Supplier/Retaller for suppiving/seling iquor without affiature oF EAL 10,00,000 JS BI Page2.2 License Fee — Distillery producing Rectified Spirits (RS), Extra Neutral Alcohol (ENA), Grain Neutral Sprits (GNS) etc. from molasses or grains or other inputs, meant for supply to potable alcohol manufacturing units The license fee for existing distilleries for 2019-20 is calculated based on actual production of Alcoholic Beverages taken place in these units from Jan-Dec last year (2018), or £15 Lakh per annum, whichever is higher. License fee is to be calculated based on following BL slabs with respective slab rate applicable on actual production levels. For ‘example, a unit producing 60 lakh BL pays License fee @ 1.0 per BL for first 50 lakh BL produced, and @ 0.75 per BL for remaining 10 lakh BL. Total Production in the unit i.e. production meant for consumption within the State of Odisha as well as for export outside Odisha is considered for calculation of License fee. SL | License fee slabs for existing distillery units Uceore Fes rateapekeabie (Sper BL) 1_| Prodvetion up to 50 Lakh BL 1.00 2 | Additional production above 5 Lakh Bt and ti 100 Lakh BL 075 3 | Additional production above 100 Lakh BL 0.50 2.3 License Fee — IMFL, Beer, Wine & Country Liquor for Production and Compounding & Blending The license fee for existing units i.e. Brewery/ Foreign Liquor Bottling units/ Country Liquor bottling units/ Winery etc. for 2019-20 is calculated based on actual production of Alcoholic Beverages taken place in these units from Jan-Dec last year (2018), or& 15 Lakh per annum, whichever is higher. License fee is to be calculated based on following LPL (for IMFL, RTD/ LABs, CL & Wine) and BL (for Beer) slabs, with respective slab rate applicable on actual production levels. For example, a unit Producing 60 lakh LPL/ BL pays License fee @ 2 per LPL/ BL for first SO lakh LPL/ BL produced, and @ 1.5 per LPL/ BL for remaining 10 lakh LPL/ BL. Only the production meant for consumption within the State of Odisha is considered for calculation of License fee. License Fee rate applicable ‘SL | License fee slabs for existing production units i (Sper LPL BL) 1_| Production of alcoholic beverages upto 50 Lakh LPL/ BL 20 2_ | Additional production above 50 Lakh LPL Land til 100 Lakh LPL BL 1s 3_ | Additonal production above 100 Lakh LP/ aL 10 > 4[Pageaa For new units, storage units, export units and microbreweries, following rates are applicable: ‘SL_| Annual License fee for new production units & others ‘Category-wise amount (in Lakh) 1 | Anns cosa fa for 3 new DstileyGncng ENA colum) 50 2. | aia rs fes ora Bose 350 3 | Amual esse fe fora new Brewery 50 {| Anal iene fe for Wirobrewery a1 | wth stated capac S00 Day a 42 | wth instal capac from 5008 bay ~ 7508 Day ——s] 43 _| with installed capacity from 750 BL/ Day ~ 1,000 BL/ Day 75 Anal bere fe fo anew wr producing wnt 30 Annual xp Ucense fee for IML nd. TO/ LAB Wine eer brands 20 ‘Annual icense fee for separate warehouse made for storage of IMFI (incl RTD/ LABs)/ Wine/ BEER meant for export | 20 | 2.4 Other License Fees - Retail ON& OFF Shops, Country Liquor, Bhang, Tari and Pochwai shops, Warehouses, Denatured Spirit etc. 2.4.1 _FL“ON" Retails “Annwal License Fee based on Area Category (Lakh por anna) Bhubaneswar | OtherMunicial | Other | Notified St | on category of Reta me J Municipal | Corporations & | Municipalities | area | Other Corporation | PuritMunicipaty | (except Pur) | councils | A?! 1 | 3Str& above Category Hotels 150 BO 110 100 | 90 2 | other Hotels (with lodging) 20 no 110 90 | 8s 3 | Hotels Restaurants without lodging | 140 30 25 no | us 4 | cubs 80 20 65 so | 55 5 | Beer Pariours 80 80 70 6s | 60 6. "ON" license may be granted to O.7.0.C/I.7.D.C. Hotels at half the rates applicable as above for License fee, based on where the said hotels are located. 7. Annual License fee for additional Bars at Hotels/ Clubs would be @ € 2 Lakh per annum 8. ‘Beer Parlours’ category would have an option to pay the differential License Fee amount compared to ‘Hotel/ Restaurant without lodging ON’ category and convert into ‘Hotel/ Restaurant without lodging ON’ category on permanent basis. Other mandatory conditions applicable for ‘Hotels/ Restaurants without lodging’ license would be applicable during this conversion also, S[Page9. Below fee per structure would be applicable for temporary license granted for private functions st Category (non-refundable) Amount (& Lakh) 3.1 | Upto 200 persons per day 0.10 9.2 | From 201 ~ 500 persons per day 05 93 | From S01 — 1000 persons per day 0.25 34 | Above 1000 persons per day 0.40 2.4.2 Fee on Denatured Spirits st Category (non-refundable) Amount (8 Lakh per annum) 1_| Annual license fee on DS-1 0.42 2_| Annual license fee on D.S-I1 035 3__| Annual license fee on D.S-Il(Carpentry) 0.25 4 Annual license fee on D.5-Ill (Industrial use) az 2.4.3 License fee for CL, OS, FL-OFF, Bhang, Tari and Pochwai Shops st Category (non-refundable) ‘Amount (& Lakh) 1__| Annual license fee for Military Canteen 0.15 2__| Monthly License fee for branch Out Still shop 0.30 Licenses of Bhang, Tari and Pochwai shops shall be Renewed for 2019-20 with 10% increase in existing 7 consideration money with necessary formalities «4_| Anal License Fee for Duty Paid Model Premium Liquor OFF Shops at Airports allowed to sell premium IML, FMFL all Wines, is fixed at € 4,00 lak '5_ | Ueenses of Out-til units operating in 22Excse districts shall be renewed for months Le. ApriFTuly 2015with 15% increase in Monthly Consideration Money, along with necessary formalities @ | Utenses of FL OFF shops shall be renewed for 4 months i.e. Apri-uly 2019 with Monthly Consideration Maney structure as specified inthis section, along with necessary formalities 7 | Ueenses of CL shops shall be renewed for 4 months i.e. Apri-iuly 2019 with Monthly Consideration Money structure as specified in this section, along with necessary formalities. 8, MONTHLY CONSIDERATION MONEY (C. MONEY) STRUCTURE FOR FL-OFF SHOPS C.MONEY/ | Shops in Municipal | Shops in Municipalities | Shops in Notified | Shops in Other Month Corporations of following districts | Area Councils of localities of (uw) following districts | following districts Category-1 | Bhubaneswar None None 7 None al Municipal Corporation | 1,50,000 | Category-2 | Rourkela Municipal | Angul, Bhadrak, | None None Corporation, Jagatsighpur, —_Jajpur, 300,000 Berhampur Municipal | Kendrapara, Puri Corporation » 6|PageCategory-3 | Sambalpur Municipal | Balasore, Bargarh, | Angul, Kendrapara Corporation, Deogarh, Dhenkanal, poate Gajapati, Ganjam, Cuttack Municipal | sharsuguda, Kalahandi, Corporation Kandmahal, Keonjhar, Khurda, Koraput, Mayurbhanj, Nabrangpur, Sundergarh Category- 4 | None Municipalities of | Balasore, Bhadrak, remaining districts(not | Ohekanal, Gajapati, 60,000 mentioned above) Ganjam, Kandhamahal, Khurda, Koraput, Mayurbhanj, Nayagerh, Nuapada, Pur, —-Rayagada, Sambhalpur Category-5 | None None NAC of remaining | Angul, Balasore, districts not covered | Bhadrak, Deogarh, at,000: above Jajpur, Kendrapada, Nayagath, Puri, Sundargarh Category- 6 | None None None Other areas of remaining districts a ret creed nove | ‘9, MONTHLY CONSIDERATION MONEY (C. MONEY) STRUCTURE FOR COUNTRY LIQUOR SHOPS Geographical Location of Shop Monthly C. Money of CL shop Municipal Corporation &Puri Municipality 1,20,000 Municipality areas except Puri 100,000 Notified Area Councils (NACS) 80,000 Other areas 30,000 i 7[Page10.For renewal of existing FL-OFF & CL shops, the C. Money must be paid in advance by 31"March as specified. 11. Retail Licensees of FL-OFF & CL shops must carefully consider financial and operational viability of the shops on C. Money & MGQ structure specified, and then only should opt for renewal of shop Licenses, 2.5 Label Registration Fee and Excise Adhesive Label (EAL) Fee 2.5.1 Label Registration Fee The existing supplier would need to pay a one-time Annual Composite Label Registration fee for 2019-20based on total number of cases supplied to OSBCL Depots during Jan-Dec 2018; the amount calculated basis the formula provided below including new suppliers. Once the composite Label Registration Fee is paid for the year, the existing supplier can bring in as many labels, without any additional label registration fee, after getting them duly approved from Excise Commissioner eaeuan Fee amount for Existing Suppliers (8) Seo 5 times the total number of cases (al labels included) | {sold to OSBCL by the supplier last year (Jan-Dec), for [rum wine) acute Soma feats supped to oS n 2a) _|° 2200 per onmum 70,000, whichever is higher |4 times the total number of cases (all labels included) jsold to OSBCL by the supplier last year (Jan-Dec), for [ser 07 La) TAC = No. of cases sipped tosectin2oie) [2000 Peranum cod whichever is higher |4 times the total number of cases (alll labels included) sold to OSBCL by the supplier last year (Jan-Dec), for a er pein No ofcse upped to osec. nana) |*2200peramum Ag a whichever is higher 2.5.2 Excise Adhesive Label (EAL) Fee Cost of each EAL supplied from Excise Department will be € 1.00 3 sirae2.6 Import, Export and Transport Fee st Category (Non-refundable) ae 1 Import fee on RS/ENA procured from outside the state (per BL) 85 2 Import fee on Ethanol/Power spirit for blending in Petro! (per BL) Os 3 __| Export fee on Rectified Spirit/ENA (per BL) 20 4 _| Transport fee on Rectified Spirit/ENA for preparation of IMFL/CL (Per BL) 1.0 5 Transport fee on Rectified Spirit/ENA for purposes other than preparation of 10 IMFL/CL (per 81) 6 Import/ Export and Transport PASS fee on IMFL, Beer and CL per transport pass 250.0 7 _| Import, Export and Transport Fee Denatured Spirit (per BL) 9.0 8 _| import, Export and Transport fee for Methanol for industrial use (per Bl) 70 9 Export fee on Beer (including RTDs/ LABs) (per BL) 1.0 10 _| Import Fee on Beer (including RTD/ LABs) (per BL) 6.0 11_| Export Fee on IMFL(including wine) (per LPL) 1.0 12_[ Import Fee on IMFL (including wine) (per LPL) 15.0 2.7 Annual License Fee for Lifting and Use of Molasses ‘s1_| Category: Units using Molasses for purposes indicated below Category-wise (non-refundable) amount (8) 1 _| Forother than distilleries, i.e. industrial uses 2,20,000 2_| Cattlefeed 40,000 3 _| Guddakhu and similar small-scale purposes 65,000 4 | Trading for industrial purposes _ 11,00,000 5_| Storage, possession and sale by sugar industry 7 1,60,000 | Utilization Fee, transport, import, export for Molasses& Grains su Category(non-refundable) cae * alee 1 | Utilization fee on molasses for Distillery 280 2 _| Utilization fee on molasses for Industrial and other Purposes 320 3 _| Import fee on molasses 160 4 | Export fee on molasses 110 5_ | Transport fee on molasses Z 7 45 & _| Utilization fee on grains of any kind used for production of spirit/ ENA/GNS Removed Import Fee to be paid on the items procured from outside the state, where as transport fee isto be paid only on items procured from within state pas 9|Page2.9 Mohua Flower Storage fee for OS Manufacturers st Storage in quintals (non-refundable) Category-wise amount (8) 1_| Upto 500 quintals 12,000 2-501 to 1000 24,000 3 | 1001to 2000 48,000 ‘4 | 2001to 5000 95,000 5__| More than 5000 1,20,000 2.10 Mohua Flower Storage fee for Mohua Flower traders SL Storage in quintals (non-refundable) Category wise amount (8) 1_| NOTTO BE SUPPLIED BELOW 501 quintals 2 | 501 to 1000 60,000 3 | 1001t0 2001, 1,20,000 4 | 2001to 5000 2,00,000 5_| More than 5000 2,80,000 2.11 Mohua Flower Utilization, Export, Import & Transport for OS Manufacturers SL Category (non-refundable) Category wise amount (Sper quintal) 1 | Utilization/ Non- utilization fee on Mohua Flower per quintal 800 2 | Mohua export fee 230 3 | Mohua transportation fee 40 4 | Mohua import fee* 40 2.12 Mohua Flower: Export, Import and Transportation for Mohua Flower traders SL Category (non-refundable) Category-wise amount (¥ per-quintal) 1_| Mohua export fee 1,400 2__| Mohua transportation fee 90 3_| Mohua import fee 90 2.13 Wholesale License fee OSBCL shall pay an annual non-refundable fee of €1Crore towards wholesale 2.14 Depot License fee for Wholesale trade Category-wise amount st Category (non-refundable) Sse seen 1. | Wholesale Depots with Foreign Liquor (including IMFL), Wine & 5 BEER storage facility only (without Country Liquor) 2 | Wholesale Depots with Foreign Liquor (including IMF), Wine, = BEER & Country Liquor storage facility _» 10| Page3. PART-B 3.1 Excise Duty/ Countervailing Duty/ Vend Fee Excise duties (ED), Countervailing duties (CVD) levied on products imported from other States and Vend Fees (VF) levied on products imported from other Countries on various products will be as mentioned below: 3.1.1 Beer- Civil ED/ CVD/ VF =Specific Component*BL+Ad Valorem st (Category of BEER Strength | ‘Specific Component | Ad valorem Component (Per BL) (& a5 % on landing Cost) Upto s% viv 35 40% 1. | Alltypes of india made Beer ‘Above 5% vv, but below 8% v/v =. a Up to 5% v/v 35, 20% 2 | Alltypes of Beerimportes |_—? from other countries Above Stv/v, but below 8% v/v ag i Beer produced inside : Microbreweries sn erent 2s ial 3.1.2 Ready to Drink Beverages of low alcoholic strength (RTDs) ~ Civil ED/ CVD/ VF = Specific Component*BL + Ad Valorem st Category Strength | Specific Component | Ad valorem Component (& Per Bt) (825% on landing Cost) India made Ready to Up to 5% v/v 35 40% 1 | Drink tow Alcoholic seat ba 4 e Beverages ves, = aa Ready to Drink Low Uptosiviv 2 | Alcoholic Beverages i : = Gi imported from other Above S%v/v, but countries below 8% v/v ee Giiad SS ttiare3.1.3 Foreign Liquor (Including IMFL& FMFL) & WINE —CIVIL ‘Strength | ED/CVD/ VE = Specific Component*LPL + Ad Valorem SL Category of Liquor (Degree | Specific Component | Ad valorem Component Proof) _| (x Per LPL) (38 % on landing Cost) India Made Wine including 1 | imported in bulk and bottled in | 12°to.36" 200 40% India 2 | Wine imported from other ae: a a countries 3.1.4 Foreign Liquor (Including IMFL & FMFL) ~ CIVIL ED/ CVD/ VF = Specific Component*LPL + Ad Valorem Strength St | Category of Liquor | (segree Proof) | Specific Component | Ad valorem Component (& Per LPL) (a5 % on landing Cost) India made whisky, Gin, 1 | Rum, Brandy, Vodka& 7s 400 other liqueurs 45% Whisky, Gin, Rum, Brandy, Vodka & other liqueurs imported in bulk & bottled in India 75" to 80° 400 45% Whisky, Gin, Rum, Brandy, Vodka & other liqueurs imported from other countries 75° to 80" 300 40% 3.1.5 Excise Duty on CL other than OS i.e. ENA based CL from all players including ACSIL Strength ED/ CVD/ VF = Specific Component*LPL + Ad Valorem St | Category of Liquor | (under proof) | SPetific Component | Ad valorem Component (= Per LPL) {as % on landing Cost) 1 | Country Liquor-Acsit 40" UP 130 40% 2 | Country Liquor-ACSiL 50° UP 100 40% 3 | Country Liquor-ACSiL 60" UP 90 40% County Liquor from - * | other suppliers moet ae fee 5 | Country Liquor from ae ia ae other suppliers 3.1.6 FMFL/ IMFL/Wine/Beer Supplies to Troops and Military Bodies Excise duties/ Countervailing duties/ vend fee on FMFL, IMFL, RTD/ LAB, Wine & Beer supplied to troops & military bodies would be levied at 70% of rate of duties applicable on corresponding/ similar civil products, except for rum, For rum, the applicable defense duty rate would be 60% of the civil duty rate, » 12|Page3.1.7. Excise Duty on Others Excise Duty=Specific Component*BL+Ad st Category of IMFL Strength | Specific Component | Ad valorem Component (Per BL) (& a5 % on landing Cost) 1_| Bhang 500 (per Ke) NIL 2 _ | DS supplied to agencies other than Govt. an il Organization within the state Liquor Cordial imported in bulk and - 3 | bottied in india bal meee NE 3.2 Additional Rounding off License fee The liquor MRP in the State would be rounded off to the next %5 to make cash transactions convenient at retail outlets. The Excise Department would charge the Additional Rounding-off License Fee (AROLF) only where required to ensure liquor prices are rounded off to next %5, This AROLF shall be a part of MRP build-up and would be included in wholesale issue price i.e. the Price at which lifting from wholesale depot is made, and shall be applicable at such value which would ensure that after application of VAT & retailer margin on wholesale issue price, the MRP so arrived is exactly a multiple of %5. ‘The wholesaler would transfer AROLF amount periodically to the Excise Department. It is further Clarified that AROLF is neither part of Wholesale License fee (OSBCL) nor Retail License Fee but an incidental levy collected by wholesaler and transferred to Department. 3.3 Profit Margins 1. Offer price of items shall not be changed without prior approval of the Price Fixation Committee 2. The wholesaler margin would be 1% of the landing cost for all products or as may be decided by the Board of the OSBCL from time to time when a change in margin is needed 3. The Retailer margin would be as follows: Retailers' margin on Items (Issue Price + VAT) All BEER& RTDs - (India made as well as imported from other countries) bid All types of Country Liquor 10% IMFLE India made Wine (including IMFL/ Wine imported in bulk and bottled in India) bai Foreign Liquor (FMFL) & Wines imported from other countries 10% _» 13 [Page4. PART-C The regulatory guidelines mentioned in the Excise Policy of 2018-19 (Excise fee, Excise Duty and Margin Structure along with Regulatory Guidelines for 2018-19) shall continue along with the following additions and modifications. MGQ ON RETAIL SHOPS ‘The MGQ structure has been rationalized to facilitate retailers to avoid short fall in lifting, ‘The MGQ for the IMFL. “OFF” shops, CL& OS shops are detailed below: GQ OF FL-OFF SHOPS & CLSHOPS FLOFF SHOP. ‘Area Type | BEER MGQ-BL per ® 100C. Money IMFL MGQ-1PL peri 100C. Money — ‘Al Areas 25 see ag ___ COUNTRY LIQUOR SHOP ia AreaType ‘CLMGQ-LPL per & 100 C. Money “Allareas Petes ae It should be noted that the MGQ of Beer could be fulfilled by way of lifting Beer/ LABs/ RTDs It should be noted that the MGQ of IMFL could be fulfilled by way of lifting FMFL/ IMFL/ Wine It should be noted that the MGQ of CL could be fulfilled by way of lifting CL from all suppliers A committee to be formed under Excise Commissioner to consider MGQ related issues faced by Licensees. In case of genuine difficulties, Excise Commissioner could relax up to 10% MGQ on the recommendation of the committee. e. State is considering migrating from Minimum Guaranteed Quota (MGQ) to Minimum Guaranteed Excise Revenue (MGER) during 2019-20to resolve the issues related to MGQ's. Instead of Quantity, Licensees would be mandated to lift goods against a guaranteed Excise revenue to the State. 4.1.1 MGQ OF ON SHOP, CLUB& HOTEL MGQ for 'ON' shops/restaurants, without lodging facility will remain same as fixed in 2018-19. 4.1.2, MGQ OF OUT STILL SHOP (OS SHOP Rreatype | ———_—_Mohua Flower MGQ (in quintal) per 1000 CM_ All Areas. I 1.0 14|Page aan ee4.1.3 MGQ FOR MOLASSES ‘The MGQ for lifting and use of molasses by the distilleries shall be fixed as per the formula as fixed last year. In case of short lifting, the unit must pay utilization fee as fixed by the Government from time to time, 4.2 OTHER REGULATORY GUIDELINES The following regulatory items detail the guidelines to be followed under each regulatory head 4.2.1 IMFL‘ON ‘SHOPS AND BEER PARLOR. |, AIL FL-OFF as well as ON Licensees could lift all the label registered Stock Keeping Units (SKUs) sizes of Foreign Liquor (60 ml, 90 ml, 180 ml, 375 ml, 750 ml etc.)& Beer (330 ml, 650 ml, 500 mletc.) from OSBCL depots. There shall be no restriction on lifting in terms of SKU sizes on any Licensee, except Beer Kegs. Il. Only ON Licensees are eligible for lifting Beer Kegs from OSBCL lll. The License Fee could be paid in 4 equal instalments IV, District collector shall be the competent authority for issuing “Temporary License” as per fee structured specified in PART A. 4.2.2 COUNTRY LIQUOR SHOPS |. CLincludes, CL manufactured by ACSIL of strength 40° UP/ 50° UP/ 60° UP and other ENA based CL of 50° UP/ 60° UP strength © Pack size allowed for CL from ACSIL - 200 ml, 300 ml & 600 mi © Pack Size allowed for CL from other manufacturers — 300 ml & 600 mi I. Keeping health interest of consumer in mind, ACSIL should also start manufacturing low strength CL of 50 UP & 60 UP strength. It is strongly recommended that ACSIL should completely move towards 50 UP & 60 UP strength CL at the earliest possible 4.2.3, OUT STILL SHOPS ‘The license of all existing Out Still (OS) shops operating in 21 Excise districts namely, Sambalpur, Bargarh, Jharsuguda, Deogarh, Sundergarh, Bolangir, Sonepur, Kalahandi, Nuapada, Boudh, Koraput, Rayagada, Malkangiri, Nabarangpur, Angul, Keonjhar, Mayurbhanj, Ganjam, Berhampur, Gajapati and Dhenkanal could be renewed for a period of 4 months w.e.f. April 2019with 15% increase over and above the existing consideration money. SS 15|Page|. All OS product i.e. OS liquor sold through Out-Still units & branch shops should be of 70 UP strength only. OS Licensees should adhere strictly to this. | No Trade license shall be granted in areas outside the availability of Mohua flower 4.2.4 IMFLOFF SHOPS 1. Itwill be mandatory for an ‘OFF" shop to display prominently the following: |, Health warning i.e. “Consumption of alcohol is injurious to health” 2. No IMFL should be sold in plastic/ PET bottles. IMFL manufacturers currently supplying in Plastic/PET bottles must move completely to Glass/ Tetra Packs by 30.06.2019. OSBCL should not place any order for Plastic/ PET packaged IMFL. from 01.07.2019 3. To reduce the chances of adulteration, IMFL manufacturers can supply their products in tetra Packaging apart from glass packaging |. Only 90 ml & 180 mI SKUs can be supplied in tetra packs Il. The tetra packs must have six protective layers and must have the shelf life or the date fit for consumption clearly mentioned I. Before using the Tetra Packs for packaging of liquor, the manufacturing units must take certification from the Central Food Technology Research Institute or Indian Institute of Packaging or any such institute as notified by Excise Commissioner 4.2.5 MAXIMUM RETAIL PRICE Maximum Retail Price (MRP) will be displayed on each bottle of FMFL, IMFL, Wine, Beer and Country Liquor and sold accordingly. The vendors are required to issue cash memo to all consumers and not charge above MRP failing which the vendors shall be penalized with fine specified in PART-A. All IMFL ‘OFF’ shops & CL shops are required to display up to date MRP chart. |. Any cash memo issue or MRP violation may also result in suspension of license for a period of 1 month without any adjustment against MGQ. 4.2.6 MICRO BREWERY To cater to “Freshly Crafted Beer” demand of the consumers in the State, and to wean consumers away from hard liquor, licenses for “ON Microbrewery” for the retail vend of freshly crafted beer ‘manufactured in Microbreweries in Restaurants and Airports in Odisha shall be granted for the Year in accordance with the following terms and conditions: _»S 16|Pagevl vil vill. XI, xi, XIlL XIV. XV, Xvi. A microbrewery may be set up where beer is manufactured and the same is served to the customers for consumption within the premises with an installed capacity of not more than 1000 (one thousand) bulk litres per day Microbrewery licensee must have a valid bar licence as per applicable ON category in the area The license fee for setting up a microbrewery is as prescribed in the PART-A The license premises must have adequate space not less than 1000 sq. feet, with a functioning restaurant and required parking facility. NOC from local statutory authorities including Odisha Pollution Control Board, Fire Department should be obtained for the purpose A Licensee shall submit a detailed lay out plan of the area in which the microbrewery is located The licensee shall arrange to check the quality of raw materials used and the beer produced in the microbrewery by a chemist holding a degree in science with chemistry as one of the subjects preferably organic chemistry or bio chemistry or specialization in alcohol technology The beer, so produced, shall not be sold outside the premises The beer, so produced in the microbrewery, shall be released for sale only after the chemist certifies that such beer is fit for human consumption The shelf life of Beer produced should also be specified by the chemist with necessary storage and handling conditions The licensee shall arrange to draw the beer samples once in every month and forward the same to laboratory for analysis The report, so obtained shall be displayed in the premises of the microbrewery The licensee shall submit a list of different categories of beer (lager, strong etc) proposed to be manufactured in the microbrewery. The alcohol content of the product consumed shall not exceed 8% v/v. Under no circumstances is beer or any alcoholic drinks is to be served to person below the age of 21 years. The rate of duty shall be on the installed production capacity at the rate prescribed in the PART-A. This duty shall be paid every quarter in advance. For a duty rate of 25/BL, a Micro Brewery with an installed capacity of SOOBL per day would be required to pay 25*500*(30+31+30) =11,37,500 by March 31” for the period Apr-Jun as advance Excise Duty for Beer production (all figures in INR) An electronic flow meter shall be installed between the fermentation tanks and storage tanks and the flow meter shall be under the supervision of the excise inspector. The flow meter shall be as per the specifications as fixed by the Excise Commissioner ys 17 | Pagesee) —y XVII, The PH, temperature and gravities of the Brews up to maturation stage should be recorded and subject to inspection as and when called for by competent authority. XVIII, The premises must be maintained neat and clean with proper ventilation, lightening and to meet all safety and emergency standard. XIX, The beer dispensing system including glasses and serving table must be maintained to ensure proper hygiene XX. The Commissioner reserves the right to halt/suspend the manufacturing and sale of beer in ‘the microbrewery and suspend or cancel the licence for reasons to be recorded as per provisions of the Odisha Excise Act and Rules XXI, All general provisions contained in the prevalent Excise Act & Rules shall be made applicable to establishment of Micro Breweries. XXII, The applicant or his/her company/society/firm does not have any interest in any distillery/bottling plant/brewery in the State of Odisha XXIII, The applicant or his company/society/firm or any of his family members or any of the family members of the persons interested in his/her company/society/firm does not hold any other FL-OFF or CL retail vend of liquor in the State of Odisha XXIV. Applicant shall provide relevant Income Tax Receipts for last 3 years 4.2.7 DRAUGHT BEER TO BE SOLD FROM KEGS/CASKS Draught beer may be imported/ supplied in Kegs through OSBCL in containers of 20/ 30/50 BL confirming to FSSAI standards to be sold for ON consumption in IMFL ON Restaurants in the State by mounting on standardized vending machines with tamper proof unidirectional flow system duly certified and installed by the concerned Beer supplier. The ON Licensees proposing to sell such Draught beer must have suitable sitting / lounge facilities. All such Beer shall be sold within 6 months from the date of manufacture. 4.2.8 ADVANCE CONSIDERATION MONEY FOR FL-OFF/ CL/ OS/ TARI/ POCHWAI/ BHANG SHOPS Advance consideration money of 3 (three) months for the existing IMFL OFF/CL/Out- Still/Tari/Pochwai and Bhang licensees shall be collected by 31.03.2019 from those EP holders who have applied for renewal of their license. No license shall be issued if this is not complied with. In addition to above advance consideration money, each licensee must pay a one-time interest free security deposit equivalent to one-month consideration money in case of renewal of their license. _S 18| Page4.2.9 LOCATION OF LIQUOR SHOP AND GUIDELINES BY HON. SUPREME COURT ON NATIONAL/ STATE HIGHWAYS Guidelines from Hon. Supreme Court regarding liquor vends along National Highways & State Highways must be strictly adhered to while granting new Licenses No signage will be used by any licensed permits located along NH/SH, as directed by the Hon’ ble Supreme Court on 15.12.2016. 5. MISCELLANEOUS Typographical error(s) & inconsistencies in this document, if any shall be clarified by Excise Department /Excise Commissioner in consonance with the Act & the Rules. These guidelines are subject to changes, if any, due to Court directions. Collectors shall strictly adhere to the provisions of the PESA Act, 1996 and the detailed guideline issued by the Excise Department vide Letter No. 7026, Dt. 7.12.2017 and No. 5724/ 29.11.2018 at the time of renewal of existing shops in Schedule Areas of the State. No shop in Schedule Area shall be renewed if the Gram Sabha has any objections in this regard. Sb |oe7 (Nikunja B. Dhal ) Principal Secretary to Government 19|Page