Excise is paid. It goes into bond. It's held in bond and you can't do anything with it. Excise is paid when it comes out of bond. As it comes out of the warehouse, out of the barrel for blending and packaging, excise is paid at that point.
The producer has seen no revenue but has incurred a tremendous amount of cost: (a) to make it, and (b) to hold it for a long period of time. The producer has seen no revenue but has paid excise.