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Liquor Act, 2003 (Act No. 59 of 2003)

Chapter 2 : National Liquor Policy

4. Regulation of manufacture and distribution of liquor

 

(1) The Minister must regulate the manufacture and distribution of liquor in accordance with this Act.

 

(2) A person must not manufacture or distribute liquor, except to the extent that the person is permitted to do so in terms of this Act.

 

(3) Subject to the conditions of its registration, a manufacturer may—
(a) manufacture liquor; and
(b) distribute the liquor that it has manufactured;
(c) to another manufacturer or to a distributor; and
(d) to a retail seller, if and to the extent permitted by the conditions of registration.

 

(4) Subject to the conditions of registration, a distributor may distribute liquor.

 

(5) Subject to the conditions of registration or licence, a micro-manufacturer may—
(a) manufacture liquor in a volume not exceeding the prescribed threshold volume; and
(b) distribute the liquor that it has manufactured to;
(c) another manufacturer or to a distributor; and
(d) to a retail seller, if and to the extent permitted by the conditions of registration

 

(6) In addition to any authority granted in terms of applicable provincial legislation, a retail seller may;
(a) purchase or otherwise acquire liquor other than by manufacturing it; and
(b) sell or otherwise dispose of liquor as a return of stock to a manufacturer or distributor.

 

(7) A sale of liquor by a retail seller in circumstances that would constitute a genuine retail sale if the purchaser of that liquor were an unregistered person, does not constitute distribution for the purposes of this Act merely because the purchaser of that liquor is a registered person.

 

(8) A sale of liquor by a retail seller to any person, whether registered or unregistered, constitutes distribution for the purposes of this Act if the retail seller;
(a) knew that the purchaser intended to re-sell that liquor; or
(b) reasonably ought to have concluded that the purchaser intended to resell that liquor, having regard to the circumstances of the sale, including but not limited to the factors listed in section 1(2) and—
(i) whether the retail seller knew the purchaser was a registered person, if applicable;
(ii) the nature of any delivery instructions given by the purchaser;
(iii) any request by the purchaser to establish a discounted pricing arrangement, or a standing arrangement for ordering, billing, credit or payment; and
(iv) any request or instructions by the purchaser to receive liquor and tranship that liquor to the purchaser or a third party.

 

(9) Nothing in this section restricts or limits any right that a manufacturer, distributor or micro-manufacturer may have in terms of applicable provincial legislation to apply to be registered or licensed as a retail seller.

 

(10) The Minister, by notice in the Gazette, must prescribe
(a) a threshold volume of liquor contemplated in subsection (5)(a); or
(b) a formula or mechanism for the calculation of a threshold volume of liquor contemplated in subsection (5)(a).