Does the business entity have a right to produce ethyl alcohol during the martial law without a license and will the liability be applied in this case?

Procedure for issuance, revocation of licenses for production of ethyl alcohol, cognac, fruit and grain distillate, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grape alcohol distillate, raw fruit alcohol, bioethanol, alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuel is established by Article 3 of the Law of Ukraine as of 19.12.1995 № 481/95-VR “On state regulation of production and turnover of ethyl alcohol, cognac and fruit, alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuel” (hereinafter – Law № 481).

Article 2 of the Law № 481 stipulates that production of ethyl alcohol (including as a medicinal product), rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grain distillate, bioethanol is carried out by business entities regardless of ownership that have a license.

License for production of ethyl alcohol is issued to enterprises that have installed and continuously operating round-the-clock video surveillance systems for production and release of products. Disconnection, cessation of operation or non-installation at all stages of production and release of round-the-clock video surveillance systems is a ground for refusing to issue a license or revoke it.

License is issued on the business entity’s Application, which is accompanied by documents specified by the Law № 481.

Article 3 of the Law № 481 stipulates that separate licenses for each activity are issued for production of undenatured ethyl alcohol, cognac and fruit and grain distillate, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, distillate of grape alcohol, raw fruit alcohol, bioethanol and denatured ethyl alcohol.

Article 17 of the Law № 481 stipulates that in the case of production of ethyl alcohol, cognac and fruit and grain distillate, rectified grape ethyl alcohol, rectified fruit ethyl alcohol, grape alcohol distillate, raw fruit alcohol, bioethanol, alcoholic beverages and tobacco products without license there is the 200 percent of the production cost (at wholesale prices) but not less than 85 thousand UAH.

Herewith, licenses are considered valid for which the next payment for license has not been paid before termination or abolition of the martial law, state of emergency on the territory of Ukraine or in the presence of force majeure circumstances and / or if the license for production and sale of ethyl alcohol, alcoholic beverages, tobacco products and liquids used in electronic cigarettes has expired (Article 18 of the Law № 481).

More information is in the “Knowledge Base” of public information and reference resource