12 September, 2021
Frequently Asked Questions about the "Cardano Rum" NFT
We look to provide some answers to questions that may arise regarding the sale of the Cardano Rum NFTs
Policy ID: 0694ecce7e95bedd98959dbe1f744b9e2aa479346735ab744b7d3fb5
IF YOU ARE LOOKING TO SEE WHICH COUNTRIES WE CAN SHIP TO click here
💵 If you have acquired the Cardano Rum Coupon on Tokhun.io you will want to fill in our form here
The following are some questions we have provided some answers so far:
1. How do we know that the bottle of rum has not been produced illegally?
It all comes down to whether the producer is an officially recognised alcohol producer in the Portuguese jurisdiction. Only producers listed on the official website for the regulatory authority for Rum production on the island of Madeira are authorised to produce and sell the "Rum Agricole" - that is, the contents of our Cardano Rums.
Click here for the official listing on the IVBAM website
2. Can you point me to some legislation covering this concern?
Yes! Defintely. Although the legislation is in Portuguese (we are after all based in Portugal) we refer to the current legislation in this area. These taxes and fees are part of the "Código dos Impostos Especiais de Consumo (CIEC)" tax code.
Click here for the Portuguese law applicable to the sale of alcohol produced in PortugalNoteworthy aspect of this law:
Article 86 (in the text of the code on the link above) refers to the holographic seal issued and placed on each bottle of alcohol produced and placed on the consumer market. The seal guarantees that the appropriate tax has been paid by the producer. The "Customs and Excise Authority" (called the "Alfândega") in Madeira, Portugal apply a tax on alcoholic spirits placed on the market. The seal is evidence that all necessary taxes and fees are applied and paid for by the producer for the introduction of the alcoholic product onto the market.
"The most important function of the seal is to provide evidence that the alcohol product being sold has not been produced illicitly or illegally."
3. Do you have any evidence that the regulatory authority governing the production and sale of rums in your jurisdiction approved the the Cardano rums and label?
Yes! We have documentary evidence to show that the final version of the label was approved on 30th July 2021. Issued by the sub-department of control and certification of IVBAM. See the picture below.
4. Do you have permission to use the the Cardano logo?
Yes! We received permission from the Cardano Foundation on 8th June 2021.
It is noteworthy to mention that the rum producer had to provide evidence of this permission to the regulatory authority (IVBAM). Any new label or product in this area has to be approved by them too. Indeed, the producer ("O Reizinho" rums) would not have been able to bottle or sell the limited run without proof of the explicit approval of the Cardano Foundation.
5. What is the Policy ID of the Cardano Rum Coupons on Tokhun.io?
0694ecce7e95bedd98959dbe1f744b9e2aa479346735ab744b7d3fb5
6. Why a two step process? That is, first you acquire a coupon NFT and then you have to negotiate that to an NFT certificate. What is that all about?
It is a convoluted process for two reasons. Firstly, we remove any KYC requirements from the sale venue and platform. In this case Tokhun.io. They are not setup to do that part of due diligence. When we sell alcohol some jurisdictions require this step to be performed by the consignor (usually ourselves). But then some jurisdictions will see the consignor as the platform or venue of sale. To mitigate any legal constraints that some jurisdictions apply we sell a coupon instead. This coupon gives the holder of that coupon the right to enter into a private sale agreement of the rum bottle off-platform and directly with us. Eventually, the coupon is exchanged for the certificate of title NFT
Secondly, we need to attach the analog world of a physical bottle of rum to it's NFT digital double. We need to associate an analog human to a digital wallet address that holds the coupon NFT! This important step is to provide us with the associated shipping address for delivery and payment contact details for the shipping cost that may be applied via PayPal or, again, in ADA.