Growers' distilling

Growers' distilling is an unqualified (free) trade (field no. 8) for distilling fruit distillates from growers' own harvest in a growers' distillery. No professional qualification is documented; the general conditions under Section 6 of the Trade Licensing Act suffice. The operation of the distillery itself, however, is governed by Act No. 61/1997 Coll., on spirits - the permit is issued by the Ministry of Agriculture and production is subject to excise duty administered by the customs office.

Conditions for operating

Full legal capacity under Section 6(1)(a) of the Trade Licensing Act (usually reaching the age of 18).
A clean criminal record under Section 6(1)(b) and (2) of the Trade Licensing Act (proven by an extract from the Criminal Records Register, which the office requests itself).
Professional qualification is NOT required - this is an unqualified (free) trade under Section 25 and Annex 4 to the Trade Licensing Act; no education or experience is documented.
A responsible representative may optionally be appointed under Section 11 of the Trade Licensing Act (not mandatory for a free trade; one person may act as responsible representative for at most 4 entrepreneurs).
Note - beyond the trade licence: the actual operation of a growers' distillery requires a permit from the Ministry of Agriculture under Section 4 of Act No. 61/1997 Coll., on spirits, and subsequent registration as a payer of excise duty on spirits with the customs office (Act No. 353/2003 Coll., on excise duties). A grower may have at most 30 litres of ethanol produced (approx. 60 litres of 50% spirit) per production period at the reduced excise duty rate.

Examples of activities

distilling plum brandy from one's own plums for a grower
distilling pear, apple and apricot brandy from fruit supplied by growers
processing growers' fruit mash into fruit distillate
operating a growers' (fruit) distillery
producing fruit distillates from a grower's harvest within the set limits
seasonal distilling of fruit mashes for local growers

What the trade is and what it is for

Growers' distilling is field no. 8 of the unqualified (free) trade under Annex 4 to Act No. 455/1991 Coll., on trade licensing (the Trade Licensing Act). Under this field you operate a growers' distillery - a facility in which a fruit distillate (typically plum, pear, apple or apricot brandy) is produced from fruit, fruit juices and mashes supplied by individual growers.

The essence of this activity is to process a grower's harvest into spirit for their own consumption, not the commercial large-scale production of spirit drinks for the market. That is precisely why the law separates growers' distilling from ordinary spirit-drink production and has placed it among the free fields.

This is an unqualified (free) trade, so to notify it you do not need any professional education or experience - it is enough to meet the general conditions under Section 6 of the Trade Licensing Act. The trade licence is merely the "ticket" into business, however; the operation of the distillery itself is additionally subject to the Spirits Act, a permit from the Ministry of Agriculture and supervision by the customs office (see below).

What falls under this trade (and what does not)

The field of growers' distilling covers in particular:

distilling of fruit distillates (plum, pear, apple brandy, etc.) from fruit and mashes supplied by a grower,
operating a growers' distillery and processing fruit mash into distillate for a grower,
producing fruit distillate from a grower's harvest to the extent and under the conditions laid down by special regulations.

What, by contrast, does not belong here - the boundary with neighbouring trades:

The commercial production and treatment of spirits and spirit drinks (liqueur factories, distilleries, production of distillates for sale) falls under the licensed (concession) trade "Production and treatment of fermentation spirit, drinking spirit, spirit drinks and other alcoholic beverages (with the exception of beer, fruit wines, other wines and mead and distillates obtained by growers' distilling)" under Annex 3 to the Trade Licensing Act. This activity has distillates obtained by growers' distilling expressly excluded from its scope - which is why the two activities do not overlap. Unlike a free trade, a concession is granted in administrative proceedings and the licence arises only on the day the decision granting the concession becomes final.
Selling and serving alcohol to customers in hospitality is a trade or hospitality activity, not growers' distilling.
The manufacture of fruit wines and mead belongs to other fields, not here.

In short: this field entitles you to distil fruit for growers, not to produce and sell spirit drinks on the market.

Statutory conditions for obtaining it

Because this is an unqualified (free) trade, the law requires only the general conditions under Section 6 of the Trade Licensing Act:

full legal capacity - Section 6(1)(a) (usually reaching the age of 18; this may be replaced by the consent of a court),
a clean criminal record - Section 6(1)(b) and (2); a clean record is proven by an extract from the Criminal Records Register, which the Trade Licensing Office obtains itself.

Professional qualification is not documented. For a free trade, under Section 25 and Annex 4 to the Trade Licensing Act, no education or experience is proven - you do not need an apprenticeship certificate, a diploma or a certificate of experience.

A responsible representative (Section 11 of the Trade Licensing Act) is voluntary for a free trade. You may appoint one (e.g. if the activity is actually managed by another person), but the law does not require it; one person may, however, hold the office of responsible representative for at most four entrepreneurs.

Important, beyond the trade itself: the arising of the trade licence does not in itself allow you to distil. The operation of a growers' distillery is governed by Act No. 61/1997 Coll., on spirits. A distillery may be operated only on the basis of a permit from the Ministry of Agriculture under Section 4 of the Spirits Act (issued in administrative proceedings, the period usually being 30 days). Production is further subject to excise duty on spirits (Act No. 353/2003 Coll.) - after obtaining the permit you must register as a payer of excise duty with the customs office, which administers this duty, supervises the quantity limits and the marking of the produced distillate. A grower may have at most 30 litres of ethanol produced (approx. 60 litres of 50% spirit) per production period (1 July - 30 June) at the reduced (half) rate of excise duty; quantities above the limit are taxed at the full rate. The specific conditions and forms will be provided by the Ministry of Agriculture and the relevant customs office.

How to notify or obtain the trade step by step

Complete the Unified Registration Form (URF). It serves to notify the trade and at the same time to register with the tax office, the health insurance company and the Czech Social Security Administration.
Submit the notification. The particulars of the notification are governed by Section 45 of the Trade Licensing Act. Options:
- in person at any Trade Licensing Office (municipal Trade Licensing Office / Czech POINT),
- electronically via the rzp.gov.cz portal,
- at a Czech POINT branch.
Prove your identity and pay the fee. The office will verify your clean criminal record itself by an extract from the Criminal Records Register.
Wait for the entry. For a notification, the Trade Licensing Office makes the entry in the Trade Register within 5 working days (Section 47 of the Trade Licensing Act). The licence for a free trade arises under Section 10(1) of the Trade Licensing Act already on the day of notification.
Arrange the distillery permit with the Ministry of Agriculture and registration with the customs office. Before starting the actual distilling, apply to the Ministry of Agriculture for a permit to operate the growers' distillery under Section 4 of the Spirits Act and then register as a payer of excise duty with the customs office.

A detailed general procedure can be found in the guide /jak-zalozit-zivnost.

Documents and fees

Identity document (identity card / passport).
Completed URF stating the line of business "Manufacturing, trade and services not listed in Annexes 1 to 3 to the Trade Licensing Act", field no. 8 Growers' distilling.
No documents on education or experience (free trade).
Administrative fee for notification of the trade: CZK 1,000, for an electronic submission CZK 800.
Extension of an existing free trade by a further field: CZK 0 (free of charge).
Period for the entry: within 5 working days of notification.
In addition: a permit to operate the distillery from the Ministry of Agriculture (administrative fee CZK 1,000, period usually 30 days) and registration as a payer of excise duty with the customs office.

Frequently asked questions

Do I have to document any education or experience in distilling when notifying?

No. Growers' distilling is a free trade for which professional qualification is not proven. It is enough to meet the general conditions under Section 6 of the Trade Licensing Act - legal capacity and a clean criminal record.

Does the trade licence entitle me to start distilling straight away?

Not quite. The trade licence is a necessary basis, but the operation of a growers' distillery itself is governed by Act No. 61/1997 Coll., on spirits. A distillery may be operated only on the basis of a permit from the Ministry of Agriculture (Section 4 of the Spirits Act) and subsequent registration as a payer of excise duty with the customs office.

Can I use this trade to produce and sell spirit to shops?

No. The commercial production and sale of spirit drinks falls under the licensed (concession) trade for the production and treatment of spirits and spirit drinks (Annex 3 to the Trade Licensing Act), from which distillates from growers' distilling are expressly excluded. This field serves to distil fruit for growers, not for large-scale production for the market.

How much can the distillery distil for me per year?

A grower may have at most 30 litres of ethanol produced (approximately 60 litres of 50% spirit) per production period (1 July - 30 June) at the reduced rate of excise duty. Quantities above this limit are taxed at the full rate.

How much does the notification cost and how quickly does the trade arise?

The notification costs CZK 1,000, electronically CZK 800. The licence arises on the day of notification (Section 10(1) of the Trade Licensing Act) and the entry in the Trade Register is made within 5 working days.

Can I add growers' distilling to a trade I already have?

Yes. If you already hold a free trade, an extension by a further field (including field no. 8) is free of charge (CZK 0). You simply notify the change to the Trade Licensing Office.