Laws of kenya

Provisions Relating to the Manufacture of Spirits 99. (1) Where the Commissioner-

1. 
   is satisfied that a process of manufacture carried on by a person involving the manufacture of spirits is primarily directed to the production of an article other than spirits; or
   
2. 
   sees fit in the case of a person manufacturing spirits by a process other than distillation of a fermented liquor,
   

2002 Customs & Excise Act Cap.472

Distiller’s and rectifier’s warehouse.

Restriction on delivery of immature spirits

3. 
   he may direct that, subject to compliance with such conditions as he may impose, such provisions of this Act or of any regulations made thereunder as may be specified in the direction shall not apply in the case of that person.
   

2. 
   If a person in whose case a direction has been given by the Commissioner under this section acts in contravention of, or fails to comply with, any conditions imposed by the direction, he shall be guilty of an offence and any plant, spirits or materials in respect of which the offence has been committed shall be liable to forfeiture.
   

100. (1) A distiller may provide in association with his distillery a place of security known as a distiller's warehouse for the deposit of spirits manufactured at that distillery and if the place is approved by the Commissioner and it is included in the distiller's entry of premises, he may deposit therein without payment of duty spirits so manufactured.

2. 
   A rectifier may provide within his factory premises a place of security known as a rectifier's warehouse for the deposit of spirits removed from a distillery or distiller's warehouse for the purpose of rectification and compounding by him at that factory and, if the place is approved by the Commissioner and it is included in the rectifier's entry of premises, he may deposit therein without payment of duty spirits so removed from a distillery or distiller's warehouse.
   

2. 
   If in the case of a distiller's warehouse the place of security provided is outside the distiller's distillery the Commissioner may attach to his approval such conditions as he may see fit, and if those conditions are not for the time being observed, that place shall be deemed not to have been approved by the Commissioner.
   

2. 
   A distiller's warehouse, wherever situated, or a rectifier's warehouse shall, for the purpose of section 95, be deemed to be part of the distiller's distillery or the rectifier's factory, as the case may be.
   

101. (1) Subject to subsection (2) no spirits shall be delivered from a distillery or a distiller's warehouse unless they have been warehoused for a period of at least three years.

2. 
   Subsection (1) shall not apply to-
   

2002 Customs & Excise Act Cap.472

Restriction on carrying on of other trades by distillers, rectifier or denaturer.

Keeping or use
of still

otherwise than

by distiller or

rectifier

prohibited.
10 of 1980, s. 2.

1. 
   spirits delivered for rectification;
   
2. 
   spirits delivered for denaturing;
   
3. 
   spirits delivered for exportation;
   
4. 
   spirits distilled at a strength of not less than sixty degrees over proof delivered for compounding;
   
5. 
   spirits delivered to a wine manufacturer.
   

3. 
   If a person delivers or procures or attempts to procure the delivery of spirits in contravention of this section he shall be guilty of an offence; and any spirits the delivery of which has been procured by the offence shall be liable to forfeiture.
   

102. (1) Save with the written permission of the Commissioner and subject to such conditions as he may impose, a distiller or rectifier or denaturer shall not carry on within his factory any trade other than that of a distiller, rectifier or denaturer, nor shall he carry on another trade on premises communicating otherwise than by a public roadway with his factory.

2. 
   A person contravening this section or any conditions imposed by the Commissioner under subsection (1) shall be guilty of an offence.
   

103. (1) Subject to this section, no person other than a distiller or rectifier shall keep or use a still.

2. 
   The Commissioner may permit, subject to such conditions as he may impose, the keeping and use of a still by a person other than a distiller or rectifier where the still is-
   
   1. 
      is kept by a person who makes or keeps stills solely for the purpose of sale; or
      
   2. 
      kept or used for experimental, analytical or scientific purposes; or
      
   3. 
      kept or used for the manufacture of an article other than spirits.
      

2. 
   A person who, not being a distiller or rectifier or permitted to do so by the Commissioner, keeps or uses a still shall be guilty of an offence and liable to imprisonment for a term not exceeding three years or to a fine not exceeding five hundred thousand shillings or to both; and the still shall be liable to forfeiture.
   

2002 Customs & Excise Act Cap.472

Deposit of rectified or compounded spirits in bonded warehouses.

Penalty for excess or deficiency in stocks of spirits.

Denaturing of spirits

10 of 1980, s. 2


104. (1) Spirits which have been rectified or compounded by a rectifier may be deposited in a bonded warehouse in such quantities and under such conditions as the Commissioner may determine for exportation or shipment for use as stores for an aircraft or vessel.

2. 
   No rectified or compounded spirits may be delivered from a bonded warehouse for home use save with the written permission of the Commissioner and subject to such conditions as he may impose.
   

105. (1) If, when an account is taken by a proper officer and a balance struck of the spirits in the stock of a distiller including stocks in the distiller's warehouse, or in the stock of a person engaged in rectifying or denaturing spirits, or in the stock of a person obtaining spirits in respect of which excise duty has been remitted for a particular purpose, any spirits in excess of what should be in stock are found, the distiller or person shall, unless the excess is accounted for to the satisfaction of the Commissioner, be guilty of an offence and liable to a fine equal to double the excise duty on a quantity of spirits equal to the excess and the excess of spirits shall be liable to forfeiture.

2. 
   If, when an account is taken and a balance struck as aforesaid, a deficiency in the spirits which should be in stock is found which cannot be accounted for to the satisfaction of the Commissioner after due allowance has been made for losses in manufacture or in transit, the distiller or person shall be guilty of an offence and liable to a fine equal to double the excise duty on a quantity of spirits equal to the deficiency, and duty on such a quantity shall thereupon become due and shall, notwithstanding section 134, be forthwith paid.
   

106. (1) No spirits shall be denatured for sale as denatured spirits except in accordance with a formula prescribed by regulations for either methylated spirits or specially denatured spirits.

2. 
   A person who contravenes this section shall be guilty of an offence and liable to imprisonment for a term not exceeding three years or to a fine not exceeding five hundred thousand shillings or to both; and any plant, spirit or materials in respect of which such offence has been committed shall be liable to forfeiture.
   

107. 
     Part IX and sections 97 and 98 shall apply to the denaturing of spirits as they do to the manufacture of excisable goods:
     

2002 Customs & Excise Act Cap.472

Storage of excisable goods after manufacture.

Provisions relating to stock book and returns.
8 of 1996, s.3.

Deficiency or excess in stock

Provided that nothing in section 91 (5) shall preclude a distiller, licensed to denature spirits, from denaturing in his distillery spirits manufactured by him therein.