The Government of Andhra Pradesh on November 22, 2023, issued a notification regarding the “Assessable Values” of Foreign Liquor.
The Commissioner of Distilleries and Breweries & Managing Director, A.P State Beverages Corporation has submitted a report stating that most of the Foreign Liquor suppliers have not renewed their brands for the current year 2023-24 due to long pending revision of the Assessable Values of their brands.
After taking note of the representations of the Foreign Liquors suppliers for revision of long pending Assessable Values and also keeping in view of the avowed policy of the Government has recommended the following:
• The “Assessable Values” of Foreign Liquor brands may be considered as per the offered price of the Foreign Liquor suppliers and let the market forces decide based on the competitive pricing in the market.
• The “Customs Duty” as per the “bill of entry” as on the date of approval may be considered for deriving MRPs.
• The Assessable Values and Customs Duties may be reviewed in every subsequent year while renewing labels during the month of April.
• The Assessment Fee on the Assessable Value of Foreign Spirits may be revised appropriately so as to maintain MRPs of Foreign Liquor brands on par or nearest with the neighbouring States to control infiltration thereby saving Government revenue.
After careful examination of the matter, the Government hereby issue the following orders in respect of existing and new FL brands.
Existing Brands: -
• Spirits/Wines/Beer - 20% Increase or offered rate, whichever is lower.
• The “Customs Duty” as per “bill of entry” as on the date of approval for deriving MRPs.
• The Assessable Values and Customs Duties shall be reviewed in every subsequent year while renewing labels during the month of April, as per the request of the FL Suppliers.
• The Assessment Fee on the Assessable Value of Foreign Spirits shall be revised appropriately with the permission of the Government so as to maintain MRPs of Foreign Liquor brands on par or nearest with the neighbouring States to control infiltration thereby saving Government revenue.
New Brands:
• Newly introduced in AP but already in existence in other States of the Country – Assessable Values in the neighbouring States or offered rate, whichever is lower.
• Offered for the first time in AP only and not available in any other State in the Country – to compare with Assessable Values of equivalent brands in existence in the State or the offered rate, whichever is lower.
• If such comparison is not possible, the offered rate may be accepted in view of the non-availability of accurate data in arriving at Assessable Value and leave it to the market forces and customers' choice.
These orders shall come into force with effect from November 17, 2023.
[Notification No. G.O.Ms.No.557]
