Wine (Grape Wine Levy) Order 2016

Wine (Grape Wine Levy) Order 2016 (LI 2016/113) Jerry Mateparae, Governor-General Order in Council At Wellington this 30th day of May 2016 Present: His Excellency the Governor-General in Council This order is made under sections 111 and 119 of the Wine Act 2003— (a) on the advice and with the consent of the Executive Council; and (b) on the recommendation of the Minister for Primary Industries made after meet ing the requirements in sections 5 and 6 of the Commodity Levies Act 1990 (as applied and modified by section 111 of the Wine Act 2003). Contents Page 1 Title 3 2 Commencement 3 3 Interpretation 3 Levy imposed 4 Levy imposed 4 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint. Note 4 at the end of this reprint provides a list of the amendments incorporated. This order is administered by the Ministry for Primary Industries. Reprint as at 17 December 2016 1 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM223266 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM223280 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227327 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227329 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2998524 Responsibility for paying levy 5 Winery primarily responsible for paying levy 4 Rate of levy 6 Basis for calculation of levy 4 7 Levy to be paid at single rate 4 8 Maximum rate of levy 4 9 Actual rate of levy set by NZW 5 10 Previous rate applies if new rate not set 5 11 Notification of rate of levy 5 Payment of levy 12 Levy to be paid to NZW 5 13 When levy must be paid 5 14 Maximum levy payable for levy year 5 15 Additional levy payable if levy not paid in time 6 Spending of levy money 16 Levy money must be spent 6 17 How levy money to be spent 6 18 Consultation on how levy money to be spent 7 Record-keeping and information requirements 19 Returns provided by wineries 8 20 Wineries must keep records 8 21 NZW must keep records 8 22 Confidentiality of information 8 Miscellaneous provisions 23 GST excluded 9 24 Conscientious objectors 9 25 Remuneration of auditors 9 Mediation of disputes 26 Appointment of mediators 9 27 Remuneration of mediators 10 28 Conference to resolve dispute 10 29 Conference to be held in private 10 30 Right to be heard 10 31 Evidence 10 32 Mediator may resolve dispute in certain cases 11 33 Costs of mediation 11 34 Appeal to District Court 11 35 Revocation of Wine (Grape Wine Levy) Order 2010 11 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 2 Order 1 Title This order is the Wine (Grape Wine Levy) Order 2016. 2 Commencement This order comes into force on 1 July 2016. Order: confirmed, on 17 December 2016, by section 18(b) of the Subordinate Legislation Confirm ation Act 2016 (2016 No 103). 3 Interpretation In this order, unless the context otherwise requires,— Director-General means the chief executive of the department that has, with the authority of the Prime Minister, responsibility for the administration of the Commodity Levies Act 1990 grape wine means grape wine (as defined by section 4(1) of the Wine Act 2003) that is made from winegrapes grown in New Zealand grape wine component means the volume of grape wine contained in a grape wine product grape wine product means a wine product (as defined by section 4(1) of the Wine Act 2003) in which the wine content includes grape wine GST means goods and services tax payable under the Goods and Services Tax Act 1985 levy— (a) means the levy imposed by clause 4; and (b) includes any additional levy imposed under clause 15 levy money means money paid under this order as a levy levy year means a period of 12 months starting on 1 July and ending on 30 June of the following year mediator means a person appointed under clause 26 and, in relation to a dis pute, means a mediator appointed to resolve the dispute Minister means the Minister who, under the authority of a warrant or with the authority of the Prime Minister, is responsible for the administration of the Commodity Levies Act 1990 New Zealand Winegrower or its replacement means— (a) the publication known on the commencement of this order as New Zea land Winegrower; or (b) any publication that replaces New Zealand Winegrower; or (c) if New Zealand Winegrower stops being published and is not replaced, a publication that the Minister specifies by notice in the Gazette Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 cl 3 3 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6923828 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM226673 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM222454 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM222454 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM81034 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM81034 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM226673 NZW means the incorporated society known as New Zealand Winegrowers In corporated quarter means a 3-month period ending on 31 March, 30 June, 30 September, or 31 December winegrapes has the same meaning as in clause 3 of the Commodity Levies (Winegrapes) Order 2016 winery means a person whose business is, or includes,— (a) producing and selling grape wine or grape wine products; or (b) selling grape wine or grape wine products that have been produced on that person’s behalf. Levy imposed 4 Levy imposed (1) A levy is imposed on— (a) grape wine that is sold by (or on behalf of) a winery; and (b) the grape wine component of a grape wine product that is sold by (or on behalf of) a winery. (2) However, the levy is not imposed in relation to the sale of the grape wine or grape wine product to another winery in New Zealand. Responsibility for paying levy 5 Winery primarily responsible for paying levy The winery that sells grape wine or a grape wine product (or on whose behalf the wine or product is sold) is primarily responsible for paying any levy on the wine or the grape wine component of the product. Rate of levy 6 Basis for calculation of levy The levy must be calculated on the basis of the volume (in litres) of grape wine (including the grape wine component of a grape wine product) that is sold. 7 Levy to be paid at single rate The levy must be paid at a single rate. 8 Maximum rate of levy The maximum rate of the levy is 3.5 cents per litre of grape wine (including the grape wine component of a grape wine product) that is sold. cl 4 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 4 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6849173 9 Actual rate of levy set by NZW (1) The actual rate of the levy for a levy year is the rate set by NZW, in accordance with its rules, before the start of that levy year. (2) For the first levy year, that rate may be set by NZW, in accordance with its rules, before the commencement of this order. 10 Previous rate applies if new rate not set The following rate of the levy continues to apply until a new rate is set under clause 9: (a) the rate last set under clause 9; or (b) if a rate has never been set under clause 9, the rate that applied immedi ately before the commencement of this order. 11 Notification of rate of levy As soon as practicable after setting a rate of the levy for a levy year, NZW must notify the rate— (a) in the Gazette; and (b) in NZW’s newsletter; and (c) in New Zealand Winegrower or its replacement; and (d) directly to all wineries whose contact details are known to NZW. Payment of levy 12 Levy to be paid to NZW The levy is to be paid to NZW. 13 When levy must be paid (1) The levy is due for payment on the day on which the grape wine or grape wine product is sold. (2) However, the levy must be paid quarterly, and the last day for paying the levy is— (a) 31 October, for sales in the previous quarter ending on 30 September: (b) 31 January, for sales in the previous quarter ending on 31 December: (c) 30 April, for sales in the previous quarter ending on 31 March: (d) 31 July, for sales in the previous quarter ending on 30 June. 14 Maximum levy payable for levy year (1) The maximum amount of the levy payable by a winery for a levy year is the amount payable on 20 million litres of grape wine (including the grape wine component of a grape wine product). Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 cl 14 5 (2) However, for the first levy year the maximum amount of the levy payable by a winery for a levy year is the amount payable on 40 million litres of grape wine (including the grape wine component of a grape wine product). (3) The amounts specified in this clause do not include any additional levy payable under clause 15. 15 Additional levy payable if levy not paid in time (1) This clause applies if a winery does not pay any amount of the levy (including any GST payable on the levy) on or before the last day for payment. (2) NZW may (at its discretion), at the end of each month during which the amount remains unpaid, impose an additional levy of 10% of the unpaid amount (including any unpaid additional levy already imposed under this clause). Spending of levy money 16 Levy money must be spent (1) NZW may pay the levy money to any of its branches or subsidiaries. (2) NZW and its branches or subsidiaries must— (a) spend all the levy money paid to them; and (b) invest the levy money until it is spent. 17 How levy money to be spent (1) NZW and its branches and subsidiaries may spend the levy money, at a nation al or regional level, for the following purposes relating to winegrapes or grape wine: (a) research and development relating to, and other programmes or services for, the New Zealand winegrape and grape wine industry: (b) representation of, and advocacy for, the interests of the New Zealand winegrape and grape wine industry: (c) the enhancement and protection of the integrity and reputation of New Zealand grape wine in New Zealand and overseas: (d) the collection, analysis, and dissemination of information: (e) research and development relating to viticulture, oenology, and other relevant disciplines: (f) market research and development: (g) the promotion of winegrapes and grape wine: (h) education and training: (i) technology transfer: cl 15 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 6 (j) the development and maintenance of standards, codes of practice, sus tainability programmes, and quality assurance programmes: (k) the protection and improvement of vine health: (l) the implementation of legislation and regulatory programmes: (m) funding activities undertaken for the New Zealand winegrape and grape wine industry by government and other agencies: (n) the day-to-day administration of NZW and its branches and subsidiaries. (2) NZW and its branches and subsidiaries must not spend the levy money on commercial or trading activities. 18 Consultation on how levy money to be spent (1) NZW must, at least every 12 months,— (a) consult wineries on how the levy money is proposed to be spent; and (b) provide wineries with details of how the levy money was spent in the previous 12 months. (2) For the purposes of subclause (1), NZW must— (a) communicate with wineries by using 1 or more of the following methods of communication: (i) sending regular newsletters to wineries whose contact details are known to NZW: (ii) communicating in New Zealand Winegrower or its replacement: (iii) communicating, in accordance with NZW’s rules, with the Re gional Membership Council of NZW (which must include repre sentatives from winegrower regional organisations): (iv) using any other method to communicate with wineries that NZW thinks fit; and (b) before NZW approves a budget to spend the levy money for a levy year,— (i) provide to wineries its draft budget and plan for spending that levy money by using 1 or more of the methods referred to in para graph (a); and (ii) give wineries an opportunity to comment on the draft budget and plan; and (c) at each annual general meeting, present the annual accounts and annual report of NZW. Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 cl 18 7 Record-keeping and information requirements 19 Returns provided by wineries (1) A winery must accompany each of its levy payments with a return that speci fies the volume (in litres) of grape wine (including the grape wine component of a grape wine product) sold in the period to which the payment relates. (2) NZW may write to a winery requesting any information that NZW needs to calculate an amount of the levy to be paid by the winery. (3) The winery must provide the information to NZW in writing as soon as is reasonably practicable after receiving the request. 20 Wineries must keep records (1) A winery must keep records of the following matters for each levy year: (a) each individual sale of grape wine (including the grape wine component of a grape wine product) sold in the levy year: (b) each sale described in paragraph (a) that was a sale to another winery in New Zealand: (c) the total volume of grape wine (including the grape wine component of grape wine products) sold in each quarter of the levy year: (d) the portion of the total volume described in paragraph (c) that was sold to other wineries in New Zealand: (e) each amount of the levy money paid to NZW and the date of payment. (2) The winery must retain the records for 2 years after the end of the levy year to which they relate. 21 NZW must keep records (1) NZW must keep records of the following matters: (a) each payment of the levy money received by NZW, including— (i) the amount received; and (ii) the date on which NZW received it; and (iii) the name and contact details of the person who paid it: (b) how and when the levy money was invested (if at all): (c) how and when the levy money was spent. (2) NZW must retain the records for 2 years after the end of the levy year in which the payment, investment, or spending happened. 22 Confidentiality of information (1) An officer, employee, or agent of NZW must not disclose any information ob tained, or obtained as a result of actions taken,— (a) under this order; or cl 19 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 8 (b) under the Wine Act 2003 or the Commodity Levies Act 1990 in relation to this order. (2) Subclause (1) does not affect or prevent the disclosure of information— (a) to an officer, employee, or agent of NZW; or (b) with the consent of every identifiable person to whom it relates; or (c) for statistical or research purposes if the information is disclosed in a form that does not identify any person; or (d) that is required by law. (3) Subclause (1) does not affect or prevent the disclosure of information for the purposes of— (a) complying with section 17(1) or 25 of the Commodity Levies Act 1990; or (b) giving evidence in any legal proceedings taken under or in relation to this order; or (c) determining the voting entitlements or counting the votes of wineries. Miscellaneous provisions 23 GST excluded The maximum rate of the levy and any amounts referred to in this order are exclusive of GST. 24 Conscientious objectors (1) A winery that objects on conscientious or religious grounds to paying an amount of the levy to NZW may instead pay the amount to the Director-Gener al. (2) The Director-General must pay the amount to NZW. 25 Remuneration of auditors A person appointed as an auditor under section 15 of the Commodity Levies Act 1990 must be remunerated by NZW at a rate determined by the Minister after consulting NZW. Mediation of disputes 26 Appointment of mediators (1) This clause applies to any dispute about— (a) whether a person is required to pay the levy; or (b) the amount of the levy payable. Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 cl 26 9 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM222446 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM226673 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227345 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227355 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227341 (2) Any party to a dispute may ask the President of the Arbitrators’ and Mediators’ Institute of New Zealand Incorporated to appoint a person to resolve the dis pute by mediation. (3) If asked under subclause (2), the President (or a person authorised by the Presi dent) may appoint a person to resolve the dispute by mediation. (4) The mediator’s appointment ends if— (a) the parties to the dispute resolve it by agreement; or (b) the mediator resolves the dispute under clause 32. 27 Remuneration of mediators (1) A mediator must be paid remuneration (by way of fees and allowances) agreed to by the parties to the dispute. (2) If the parties to a dispute cannot agree on a mediator’s remuneration, the Presi dent of the Arbitrators’ and Mediators’ Institute of New Zealand Incorporated (or a person authorised by the President) must— (a) set the remuneration to be paid to the mediator; and (b) specify how much of that remuneration (if any) each party must pay. (3) A party must pay to the mediator any amount specified as payable by that party under subclause (2)(b). 28 Conference to resolve dispute (1) A mediator may organise, and preside at, 1 or more conferences between the parties to a dispute to try to resolve the dispute. (2) Every conference must be held on a day, and at a time and place, set by the mediator and notified in writing to the parties. 29 Conference to be held in private (1) Only the mediator and the parties to a dispute may attend a conference. (2) However, the mediator may allow a representative of any party to a dispute to attend a conference if the mediator is satisfied that it is appropriate in the cir cumstances. 30 Right to be heard The following persons may be heard at a conference: (a) every party to the dispute; and (b) every representative of a party allowed by the mediator to attend the conference. 31 Evidence (1) A mediator may hear and take into account any relevant evidence or informa tion, whether or not it would be admissible in a court. cl 27 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 10 (2) A mediator may, on the mediator’s own initiative, seek and receive any evi dence, and make any investigations and inquiries, that the mediator thinks de sirable to resolve a dispute. (3) A mediator may require any person giving evidence at a conference to verify the evidence by statutory declaration. 32 Mediator may resolve dispute in certain cases (1) A mediator may resolve the dispute for the parties if— (a) the dispute is not resolved at a conference; or (b) the mediator believes that the parties are unlikely to resolve the dispute, whether or not they confer directly. (2) A mediator who resolves a dispute under subclause (1) must give each of the parties written notice of the mediator’s decision and the reasons for the deci sion. (3) The parties must comply with the mediator’s decision. 33 Costs of mediation Each party must pay its own costs in relation to the mediation. 34 Appeal to District Court (1) A party to a dispute who is dissatisfied with a decision made by a mediator under clause 32 may appeal to a District Court against the decision. (2) The appeal must be brought by filing a notice of appeal— (a) within 28 days after the date of the decision; or (b) within any longer time that a District Court Judge allows. (3) The Registrar of the court must— (a) set the time and place for the hearing of the appeal; and (b) notify the time and place to the appellant and the other parties to the dis pute; and (c) serve a copy of the notice of appeal on every other party to the dispute. (4) Every party to the dispute may appear and be heard at the hearing of the ap peal. (5) The District Court may confirm, vary, or reverse the mediator’s decision. (6) The filing of a notice of appeal does not operate as a stay of any process for the enforcement of the mediator’s decision. 35 Revocation of Wine (Grape Wine Levy) Order 2010 The Wine (Grape Wine Levy) Order 2010 (SR 2010/460) is revoked. Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 cl 35 11 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM3426200 Michael Webster, Clerk of the Executive Council. cl 35 Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 12 Explanatory note This note is not part of the order, but is intended to indicate its general effect. This order comes into force on 1 July 2016. It revokes the Wine (Grape Wine Levy) Order 2010. This order imposes a levy on grape wine (including the grape wine component of a grape wine product) that is sold by (or on behalf of) a winery in New Zealand. The levy is payable to New Zealand Winegrowers Incorporated (NZW), which is the industry body for both winegrapes and grape wine that replaces the New Zealand Grape Growers Council Incorporated and the Wine Institute of New Zealand Incorp orated. The winery that sells the grape wine (or on whose behalf the wine is sold) is responsible for paying the levy. The levy may be used for the purposes of the winegrape and grape wine industry (and NZW also administers the levy under the Commodity Levies (Winegrapes) Order 2016 for those purposes). The Wine (Grape Wine Levy) Order 2010 is revoked. However, the revocation does not affect obligations that arose before 1 July 2016 to pay the previous levy to the previous industry body (see section 17 of the Interpretation Act 1999). This order is a confirmable instrument under section 47B of the Legislation Act 2012. It is revoked at the close of 30 June 2017 unless earlier confirmed by an Act of Parlia ment. That stated time is the applicable deadline under section 47C(1)(a) of that Act. If this order is confirmed, it will, under section 13 of the Commodity Levies Act 1990, be deemed to be revoked 6 years after it is made, unless it is revoked or exten ded before then. Issued under the authority of the Legislation Act 2012. Date of notification in Gazette: 2 June 2016. Reprinted as at 17 December 2016 Wine (Grape Wine Levy) Order 2016 Explanatory note 13 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM3426200 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM3426200 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6849167 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6849167 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM31486 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6705124 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6705127 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM227338 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2997643 Reprints notes 1 General This is a reprint of the Wine (Grape Wine Levy) Order 2016 that incorporates all the amendments to that order as at the date of the last amendment to it. 2 Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official elec tronic version also has official status. 3 Editorial and format changes Editorial and format changes to reprints are made using the powers under sec tions 24 to 26 of the Legislation Act 2012. See also http://www.pco.parlia ment.govt.nz/editorial-conventions/. 4 Amendments incorporated in this reprint Subordinate Legislation Confirmation Act 2016 (2016 No 103): section 18(b) Wellington, New Zealand: Published under the authority of the New Zealand Government—2016 Notes Wine (Grape Wine Levy) Order 2016 Reprinted as at 17 December 2016 14 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2998516 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2998515 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2998532 http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM2998532 http://www.pco.parliament.govt.nz/editorial-conventions/ http://www.pco.parliament.govt.nz/editorial-conventions/ http://prd-lgnz-nlb.prd.pco.net.nz/pdflink.aspx?id=DLM6923828