As a rule, alcohol may only be produced in Germany in distilleries that are sealed by customs (sealed distilleries). An exception to this principle are severance distilleries. These distilleries are not sealed and the alcohol tax is estimated at a flat rate according to the type and quantity of raw materials processed. The permit authorizes you to operate such a distillery. You may produce up to 300 litres of pure alcohol (annual quota) per calendar year in your severance distillery. Before granting a permit, the tax authorities generally check that certain requirements are met with regard to your tax reliability, your bookkeeping and your business facilities. You must also prove that you have an economic need, for example because you grow a lot of fruit as an agricultural business. The permit is tied to your person and can be temporary. Independently of the operating permit, you must also have each individual burning process approved and submit a so-called severance declaration. The information in the settlement declaration is used to determine the lump-sum amount of alcohol you obtain for each distilling operation. Your annual quota is debited accordingly. If you do not have your own package distillery, you can process your self-produced raw materials fruit (including fruit must and fruit marc), berries, wine (including wine yeast and wine marc), roots, Jerusalem artichokes or the respective residues thereof into alcohol as a so-called substance owner in a package distillery approved by the customs administration or have them processed by the owner of the respective package distillery (substance owner distilling). You do not need a formal permit to act as a substance owner. However, even as a substance owner, you must declare each individual distillation process to the main customs office. To do this, you submit a "substance owner's settlement declaration". The declaration also serves as a tax return for the alcohol tax. As a substance owner, you have a quota of up to 50 litres of pure alcohol per calendar year.