The following information could be very important for your members if they are unaware thereof.
- The National Liquor Act regulates the manufacturing and distribution of liquor while in most of the provinces the Provincial Liquor Acts deal with the retail sale of liquor.North West and Limpopo provinces do not have their own provincial liquor legislation therefore the old Liquor Act, 27 of 1989 is applicable in these provinces pertaining to the retail sale of liquor
- A manufacturing registration is a license granted to any liquor manufacturer who produces volumes of liquor that are equal or exceeds the following thresholds:100 million litres of clear beer per year, 50 million litres of sorghum beer per year, 4 million litres of wine per year and 2 million litres of spirits per year.If volumes of liquor is manufactured below the above threshold then a micro-manufacturing license or registration must be applied for in terms of the provincial liquor legislation applicable in your province.
- A distribution registration is a license granted to a liquor trader who distributes liquor only to other liquor license holders like taverns, restaurants, bottle stores, etc.A liquor distributor may not sell liquor directly to the public.
- The holder of a liquor store license or registration may not sell liquor to another liquor license holder like taverns, restaurants, bottle store’s, etc. or any person reselling that liquor.
- Therefore, it is clear that a liquor store and/or distributor may not sell liquor to a shebeen, which is obviously unlicensed and resells the liquor.It is a criminal offence for a liquor store to sell liquor to a licensed person or to a unlicensed person who resells the liquor.
- Section 4(8) of the National Liquor Act is clear that: –“A sale of liquor by a retail seller (for example a liquor store) to any person, whether registered or unregistered (licensed or unlicensed), constitutes distribution for the purposes of this Act (National Liquor Act) if the retail seller –
- knew that the purchaser intended to resell the liquor; or
- reasonably ought to have concluded that the purchaser intended to resell thatliquor, having regard to the circumstances of the sale, including but not limited to the factors listed in Section 1(2) and –
- whether the retail seller knew the purchaser was a registered person, if applicable;
- the nature of any delivery instructions given by the purchaser;
- any request by the purchaser to establish a discounted pricing arrangement, or a standing arrangement for ordering, billing, credit or payment; and
- any request or instruction by the purchaser to receive liquor and tranship that liquor to the purchaser or a third party.”
- Section 1(2) of the National Liquor Act states clearly that: –“For all purposes of this Act, the question whether, at the time of producing, bottling, importing or acquiring any liquor, a person did so for the purpose or with the intention of selling that liquor is a matter of fact to be inferred from the circumstances, including but not limited to –
- the frequency and quantity of liquor produced, bottled, imported or acquired by that person;
- the frequency and quantity of sale of liquor by that person;
- the existence or absence of any evidence that-
- at the time that liquor was acquired, the person could reasonably have expected that the acquisition and retention of that liquor could result in commercial gain; or
- the person acquired or retained the liquor with the expectation of realising a commercial gain;
- the existence or absence of any evidence of advertising, promotional or marketing activity by that person relating to the sale of liquor; and
- the nature of any relationship between that person and a registered person.
- The penalty for contravening the above provisions, if convicted, is a fine not exceeding R1 million or to imprisonment for a period not exceeding 5 (five) years.
- Application for a national distribution registration is made with the National Liquor Authority which application must comply with the provisions of the National Liquor Act and can be obtained within two to three months after application has been made.
- An application for a distribution registration can be done at the very same premises where you are the holder of a liquor store license or any other business premises.
- Any enquiries regarding applications for distribution registration can be made to Honey Attorneys who will also assist you at an agreed fee to make application on your behalf.
- You are more than welcome to ask for a quotation and/or any further information which you might require to assist you in making a decision whether you should apply for a distribution registration.You can contact our Mr Kobus Burger if you require any further information.
Written by: J.C. Venter (LL.B)