POST REGISTRATION / LICENSING VISIT PROCEDURES

Question

Inspection on the company called Urbanature Distilling co was conducted as follows:
 On 13 May 2025, we visited the above-mentioned company at Cnr Lenchen South and South Street,
Erf 1930, Zwartkops Shop 3A to conduct inspection on the application of the taxpayer regarding
new registration of type 35 warehouse (VMP).
 On arrival, we were welcomed by Mr. Mathys Vosloo.
 The client told us that he applied for VMP and VMS, however Pretoria Office was also coming to
conduct inspection for VMS.
 He walked us through the manufacturing warehouse where manufacturing will take place and where
they will pay excise duties during the manufacturing process, and to packaging and labelling.
 He then took us to where the raw material will be received and stored.
 Gin will be their signature product, for local and export sales. Hoping to start manufacturing whisky
later if the gin is successful.
 Urbanature Distilling co started 2023 and wants to start manufacturing gin.
 They buy their alcohol form Alco NCP.
 250 litres (one drum) of alcohol will yield 650 bottles (750 ml) per month.
 Their labelling is done by Minit print, Hatfield.
 The two warehouses are marked with a yellow line on the floor.
 VMP pertains to the manufacturing process, while VMS is designated for bottling, labeling, and
packaging.
 The company has two employees: one full-time and one part-time.
 The building has one roller door, and they use it for entrance and exit, and it have access for
Customs lock.
 Building wall is bricks, ceiling is iron.
 The entire building, brewery included, has a monitored alarm system.
 Fire extinguishers are in place which will be serviced by May 2026.
The list of tanks:
 They have 2 x 500L stainless steel holding tanks.
 1 x 100L mobile holding tank
Client registered Tax types are:
o 9578318207
o 4860316506
o C25555469

DETAILED FINDINGS
The following actions occurred:
1. Registration / licensing visit performed, and no irregularity noted.
2. The building meets the requirement and is ready to manufacture.

CONCLUDING REMARKS, CLOSURE ACTION AND SIGN OFF
CLOSURE ACTION
1. Recommendation as per the inspection done and the client meet the requirements of Customs and
Excise warehouse in terms of the Act, therefore registration of VMP warehouse will be recommended in
concluding remarks.
CONCLUDING REMARKS
1. Based on the process followed above the registration is recommended for approval.

Please review the inspection report using the auditing jargons

Answer 1

Inspection Report Review: Urbanature Distilling Co.

Audit Summary: An inspection was conducted at Urbanature Distilling Co. on 13 May 2025 to assess the company's compliance and readiness for the registration of a Type 35 warehouse (VMP) under the Customs and Excise Act. The findings indicate that the company has established a compliant manufacturing facility equipped for gin production with intentions for future diversification into whisky manufacturing.

Inspection Details:

• Date of Inspection: 13 May 2025
• Location: Cnr Lenchen South and South Street, Erf 1930, Zwartkops Shop 3A.
• Welcoming Officer: Mr. Mathys Vosloo
• Purpose of Visit: Evaluation of application for VMP registration and preparedness for manufacturing operations.

Findings:

1. Regulatory Compliance: Upon arrival, the client confirmed that they applied for both VMP and VMS registrations, with the Pretoria Office scheduled to conduct an inspection regarding VMS. This indicates proactive engagement with regulatory authorities.

2. Facility Overview:

   • Manufacturing Area: The facility is segregated into operational zones for manufacturing, bottling, labeling, and warehousing raw materials. The layout was navigated effectively, indicating adequate planning and compliance with warehouse regulations.
   • Production Capacity: The company intends to produce 650 bottles (750 ml) monthly from 250 liters of alcohol, sourced from Alco NCP. This production plan aligns with initial projections and supports viability for both local and export markets.
   • Infrastructure Review: The facility consists of an appropriate brick structure with an iron ceiling, a single roller door for access (secured with a Customs lock), and a comprehensive monitored alarm system, which reflects sound security measures.
   • Fire Safety Compliance: Fire extinguishers are available and scheduled for servicing by May 2026, fulfilling safety requirements.

3. Equipment Inventory:

   • The establishment includes:
     • 2 x 500L stainless steel holding tanks.
     • 1 x 100L mobile holding tank. This equipment meets the necessary capacity requirements for the anticipated production processes.

4. Employee Count: The workforce comprises one full-time and one part-time employee, indicating a lean operational model at this stage, which may be scalable as production volumes increase.

5. Documental and Tax Compliance: The client is registered under the following tax types:

   • 9578318207
   • 4860316506
   • C25555469 This highlights the company’s compliance with tax obligations pertinent to their business operations.

Conclusion:

• Registration Recommendation: Based on the comprehensive inspection carried out and the absence of any irregularities, it is concluded that Urbanature Distilling Co. has met all necessary requirements for the licensing and registration of a VMP warehouse as per the Customs and Excise Act.
• The findings substantiate the company's readiness to commence manufacturing operations aligned with regulatory standards, warranting an approval recommendation for the registration of the VMP warehouse.

Sign-Off: The inspection report is hereby submitted for your review, with a recommendation for the issuance of the VMP warehouse registration based on compliance with all applicable regulations and operational readiness observed during the inspection.

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Audit Prepared By: [Auditor's Name]
Date of Report Submission: [Insert Date]
Position: [Auditor's Position]
Signature: ___________________