Brewers are facing confiscation (2014-12-15)

According to confirmed information, in December 12, 2014 the State Duma Committee for Economic Policy, Innovation and Entrepreneurship recommended the State Duma to pass the bill in the first reading “Concerning Amending of some Legislative Acts of the RF about prevention measures against illegal production and circulation of alcohol products.  

“The document contains information about confiscating of equipment used for illegal production and circulation of alcohol. Special formulation prescribing to remove distrained property, including transport facilities and raw materials from the place of confiscation has been created”, the Chairman of the Committee for Economic Policy, Innovation and Entrepreneurship Igor Rudensky informed.

“Often, after revoking of the activity license, sealed property is kept and used in the place of confiscation. By opinion of the RF Government, it is necessary to allocate additional 367 mln. rub. but it will not cause financial difficulties to the budget system. As a result of reducing of illegal production, legal volumes will be increased and excise duties will be allocated to the national treasure. Besides, earnings from sold transport, equipment and raw materials will be directed to the federal budget,” told Igor Rudensky.

It bears reminding that our Union notified the brewing community about introduction of the confiscating procedure. Besides, in March 7, 2014 during voting in our website, over 66% of 900 respondents approved this step.

What do you think about introduction of the confiscation system of the core process equipment and motor transport in a similar way to strong alcohol?

Yes, if you don’t pay taxes or break the law (66%, 594 Votes)

No, confiscation is fatal to the whole industry (7%, 60 Votes)

Strengthening of responsibility is necessary but there must be modus in rebus (27%, 246 Votes)

Total Votes: 900

According to the bill there is no exception for brewers, but as licensing for brewers has not been introduced and beer is an alcohol product, so, law violation such as:

– production non-complying with the state standards and technical requirements;

– production without corresponding documents approving legality of manufacturing and circulation of alcohol products (uncounted goods etc);

will lead to administrative and criminal cases as well as confiscation of production,

– the core technological equipment

– motor transport

You can find the draft bill by reference

Explanatory note is here

The Draft bill will be approved in the first reading in December 16, refer to the decision of the Committee.

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