According to Article 38 of the Detailed Rules for the Implementation of the Law of People's Republic of China (PRC) Municipality on Tax Collection and Management, if the purchase and sale business between taxpayers and affiliated enterprises is not priced according to the business dealings between independent enterprises, the tax authorities may adjust their taxable income or income in the following ways and verify their taxable amount:

(1) According to the price of the same or similar business activities between independent enterprises;

(2) The level of income and profit obtained at the price of resale to an unrelated third party;

(3) according to the cost plus reasonable expenses and profits;

(4) According to other reasonable methods.

The State Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning can choose the above-mentioned treatment methods according to the different accounting methods between the local liquor production enterprises and their affiliated enterprises, adjust the taxable income of consumption tax on liquor products, verify the taxable amount and pay back the consumption tax.

Beer sold by a beer production enterprise shall not be based on the price sold to its affiliated beer sales company as the standard for determining consumption tax, but on the external sales price (including packaging and packaging margin) of its affiliated beer sales company as the standard for determining consumption tax, and the unit tax of beer consumption tax shall be determined accordingly.