Wholesale of alcoholic beverages

8.1.2007 Dnro 38/43/2007

 

The holder of a production or wholesale licence for alcoholic beverages granted by the National Product Control Agency for Welfare and Health (Product Control Agency, STTV) can exercise the wholesale of alcoholic beverages. The licence can be granted to a person who is considered to meet the necessary preconditions and reliability for the activities (Alcohol Act 1143/94, 27 §). The licence is valid for the ongoing future or a fixed term. A licence for the ongoing future is valid for as long as the applicant is seen to fulfil the preconditions for wholesale. (Application)

 

During the validity of the licence, the Product Control Agency monitors that the activities are carried out in accordance with the provisions. Further provisions on keeping the licence valid have been given in the Ministry of Social Affairs and Health Decision (STMp) on the preconditions and applicants’ necessary reliability for the production li-

cence, import licence and wholesale licence of alcoholic beverages and spirits (274/1997).

 

Charges 2007-2009

 

The supervision of wholesale is liable to an annual supervision fee collected every autumn which is, in addition to the basic charge), based on the sales of alcoholic beverages. Further provisions on the charges and discounts are given under the Ministry of Social Affairs and Health Decree (STMa) on the Product Control Agency’s Charges (1395/2006).

 

The licence holders’ duties and responsibilities

 

The licence holder is obliged to inform the Product Control Agency if changes to the licence holder’s details and activities (e.g. name, partners, holdings, discontinued business activities, address or location of the store) occur; this can be carried out for example on the Product Control Agency’s appeal application form.

 

During the validity of the wholesale licence, the licence holder guarantees that they hold the necessary preconditions and required reliability for these activities (Alcohol Act 27 §; STMp 274/1997).

 

Product Control

 

The wholesaler of alcoholic beverages is responsible for the quality and composition of the alcoholic beverage they deliver for consumption and that the labelling and other presentation are in accordance with the issued provisions (Alcohol Act 43 §). The following guidelines issued by the Product Control Agency assist the licence holder in the product control of alcoholic beverages

 

·         Guidelines for a self-control plan for wholesale licence holders

·         The Product Control Agency’s guidelines on alcohol advertising

·         Label markings for wines

·         Monitoring organically produced alcoholic beverages

 

Separate provisions on certain alcoholic beverages’ composition and labelling have not been issued under alcohol legislation; in these cases alcoholic beverage practices follow the food legislations requirements for food stuffs issued under section 3 subsection 2 of the Food Act (361/1995).

 

Storing          Alcoholic beverages can be temporarily stored free of excise duty in stores which have been approved by the Product Control Agency and the customs authorities. Changes such as location or extension to the store must always be reported to the Product Control Agency. Provisions for the application of tax-free storage of alcoholic beverages have been issued under section 30 of the Decree on Alcoholic Beverages and Spirits (1344/1994). The Product Control Agency does not give a separate approval on taxed stores but the same guidelines apply to those as do to tax-free stores; that means that the trader has to ensure that the following are attended to: locking, personnel access, patrolling, alarm, inventory, bookkeeping and reporting. If the licence holder has both a taxed and tax-free store, their boundaries have to be clearly marked, and they have to have separate product bookkeeping.

 

Wholesale    

 

The licence holder can sell the products only to the holders of a licence granted by the Product Control Agency or the State Provincial Office and from the tax-free store as so called special sales which are in accordance with the licence conditions. The seller has to always ensure that the buyer has a licence authorising them to buy the beverage. The seller has to check the licence number, the extent of the licence (which product groups the customer is entitled to buy or if the licence is, for example, an A, B or C-licence) and that the licence is valid. If the buyer has a variety of different kinds of licence, the seller has to check for what purpose the purchases are made (i.e. a restaurant might have a licence to purchase alcoholic beverages for dispensing or for kitchen alcohol usage). The seller has to also monitor that customers’ purchase quota for kitchen alcohol is not exceeded. Only beverages from a tax-free store can be sold to customers with a licence for kitchen alcohol. 

 

                      Valid (note particularly fixed-term licences), amended and closed licences as well as licences with a ban on sales have to be checked from the Product Control Agency’s licence register on its website www.sttv.fi -> Luparekisteri Guidelines for how to use the Product Control Agency’s licence register are available in the Product Control Agency’s licence register’s Internet instructions. 

 

Bookkeeping and reporting

 

                      The Product Control Agency’s licence conditions require that the company’s bookkeeping and reporting are organised in a way which enables efficient monitoring at all times. The licence holder has to use a bookkeeping system which includes store and sales bookkeeping. The store bookkeeping has to be based on product-specific and real-time information. Sales bookkeeping has to combine the customer and product register information. The trader must once a month (latest on the 18th of the month) declare the previous month’s delivery information to the Product Control Agency. All new products entering the market and products which have been withdrawn from the market have to be immediately reported to the Product Control Agency. In addition, the Product Control Agency has to be informed on the 18th of September at the latest on the store situation of grape wines at the 31st July. Further information on reporting is available at the Product Control Agency’s guidelines for wholesale reporting. 

 

Advertising    Provisions on advertising and other promotion of alcoholic beverages have been issued under section 33 of the Alcohol Act. An alcoholic beverage bottle’s illustration is part of sales promotion directed at consumers; its aim is that consumers take notice of the product and to distinguish the product from other products. The label works both as the source of product information and an advertising surface. Hence, a label can also be evaluated in accordance with the advertising provisions of the Alcohol Act. The Product Control Agency has defined the advertising provisions of the Alcohol Act in its guidelines on alcohol advertising.

 

The Product Control Agency’s supervision and consequences of violations

 

                      In accordance with sections 41, 43 and 44 of the Alcohol Act, the Product Control Agency supervises the licence holders in issues mentioned above. The Product Control Agency is authorised to check the licence holder’s premises and activities and documents related to alcohol trading. The activities and premises have to be planned in a way which enables efficient supervision; for example, it has to be possible to find out the amount of alcoholic beverages in the stores at any time.

 

The quality, composition and labelling of products in the market are constantly monitored. In addition, the Product Control Agency is authorised to take and receive samples free-of-charge from the licence holder’s store for supervisory purposes. 

 

Also included in the monitoring process is the Product Control Agency’s register of the licence holders and products in the Finnish market as well as their sales volumes by delivery channels. The delivery information received from the wholesalers is used to monitor the legality of the activities and to build up statistics of the consumption of different product groups. 

 

In accordance with the provisions of the Alcohol Act, the Product Control Agency cannot give an approval of the products in advance. If the alcoholic beverages or their presentation do not comply with the issued provisions and regulation, the Product Control Agency may prohibit placing the alcoholic beverage on the market or without compensation oblige the wholesaler to remove the product from the market (Alcohol Act 49 §).

 

The tasks of the Product Control Agency include monitoring that the wholesale licence holder’s responsibilities are fulfilled. In addition, it may lay down necessary conditions for the supervision of the wholesale trade (Alcohol Act 27 subsection 3). The Product Control Agency can cancel a wholesale licence without compensation for a fixed period or permanently if the prescribed provisions, regulations, restrictions or conditions are not observed or the licence holder is considered to no longer fulfil the conditions necessary for the licence or have lost their reliability (Alcohol Act 28 §).

 

Appeals to the Product Control Agency’s decision

 

Appeals on the Product Control Agency’s decisions can be directed to the Supreme Administrative Court in whose judicial district the applicant resides. An exception to this are those decisions for which in section 52 of the Alcohol Act provision on prohibition against appeal has been issued (prohibition decisions, temporary prohibitions and imposing a fine or threat referred to in sections 48-50); these are referred to the Market Court.  

 

 

 

For further information on the Product Control Agency’s Alcohol Product Control Unit: tel: +358 9 3967 2761 or e-mail: atva@sttv.fi. The Product Control Agency’s website www.sttv.fi also features guidelines and application forms regarding alcohol business activities.