Guidance

Producing Scotch Whisky

Find out about applying for the Spirit Drinks Verification Scheme, how to submit brand information, fees and making sure your production process is compliant.

From:
HM Revenue & Customs
Published
1 October 2014
Last updated
5 January 2022 — See all updates

This guidance is for anyone who:

  • is involved, or intends to be involved, in any of the 5 Scotch Whisky production processes
  • receives Scotch Whisky in bulk
  • markets, or intends to market, their product as Scotch Whisky

It will help you find out:

  • who should apply for verification
  • what fees you’ll need to pay
  • what happens if a production process is found to be non-compliant
  • how HMRC verifies compliance with the Technical File for Scotch Whisky and recovers its verification costs
  • how to submit an Undertaking to HMRC, if needed, because you either receive:
    • Scotch Whisky in bulk outside Scotland which you blend, bottle or label yourself
    • for onward bottling by someone else

The glossary will help you understand some of the terms and abbreviations used.

Verifying Scotch Whisky

The Spirit Drink Verification Scheme protects the reputation and authenticity of UK spirit drinks with a Geographical Indication.

Scotch Whisky is a registered Geographical Indication under Regulation (EC) No 110/2008, which requires products to comply with the specifications of their relevant Technical Files that were originally submitted in accordance with Regulation (EC) 110/2008.

All Scotch Whisky must be verified and comply with the Technical File for Scotch Whisky.

HMRC will:

  • carry out verification visits to production facilities
  • check that processes comply with the Technical File
  • verify products as compliant, for example by checking invoices, delivery records, equipment and procedures
  • assure production processes using these Verification checks for Scotch Whisky (PDF, 441 KB, 16 pages)
  • record compliant processes as ‘assured’ — HMRC can only verify a brand if all processes involved have been assured, including non-UK blending and bottling or labelling facilities
  • publish details of production facilities and verified brands with assured processes and bulk importers that have provided the required Undertakings on the look-up service
  • only access those records relating to tax and duty assurance already held by HMRC that are required to support our Scotch Whisky verification activity, as outlined in the applicable verification checks

Our role does not extend to enforcement. Where appropriate and permitted, HMRC will pass relevant information onto the designated enforcement authorities for their action.

Unless there is a need to carry out verification on a more frequent basis, or you have agreed a longer period, HMRC will verify producers every 2 years.

The legislation

The following main pieces of legislation are given in respect of geographical indication for Scotch Whisky.

The main regulations that apply in the EU

The regulations include:

  • Regulation (EC) No 110/2008 on the definition, description, presentation, labelling and protection of geographical indications of spirit drinks — the provisions on geographical indications in this regulation were revoked and replaced in June 2019
  • Regulation (EC) No 787/2019 on the definition, description, presentation, and labelling and the protection of geographical indications for spirit drinks — the provisions on geographical indications in this regulation became applicable from 8 June 2019

For Great Britain, these regulations will become retained EU law through the EU (Withdrawal) Act 2018, with operability amendments being made through secondary legislation.

The main regulations that apply in Great Britain

The regulations include:

The main regulations that apply in Northern Ireland

The regulations include:

Who should apply

You should apply for the Spirit Drinks Verification Scheme if you:

  • carry out any of the following production processes in Scotland:
    • fermentation
    • distillation
    • maturation
    • blending
    • bottling and labelling
    • labelling only
  • carry out blending, bottling and labelling or labelling only of Scotch Whisky outside Scotland
  • are a bulk importer

If you carry out blending, bottling and labelling of Scotch Whisky outside Scotland, or are a bulk importer, you’ll also need to submit an Undertaking.

Production facilities in Scotland

How much you’ll need to pay for production facilities in Scotland

You’ll need to pay £1,630 for each production process verified in Scotland, if you’re a Scotch Whisky producer.

Each premises where a production process takes place requires a separate fee.

HMRC recognises that some Scotch Whisky processes take place at the same production facility, like fermentation and distillation, however, they are recognised as separate processes.

All verification fees are to be paid in advance of any verification work being carried out through physical verification visits.

HMRC review fees annually and publish any changes in this guidance.

Find out how to pay the verification fee.

How to submit brand information

Once your product has been verified under the scheme, verified bottlers and labellers should submit brand information to HMRC.

If you are a brand owner, and someone else produces or bottles and labels your brand, you do not need to apply to HMRC for verification. The bottler and labeller is responsible for applying for verification and notifying HMRC of your brands.

You will not be able to market any brands which have not been notified.

Re-bottling and re-labelling

Verification is required for Scotch Whisky being bottled for the first time or being re-bottled or re-labelled. Single Malt, however, cannot be re-bottled or re-labelled outside Scotland.

Re-labelling is a verifiable process which comes under the verification for bottling and labelling or labelling only. HMRC expect customers carrying out this process who are not already verified for bottling and labelling or labelling only to apply for verification for those processes.

Examples of re-labelling or re-bottling which require verification include:

  • a business decants bottled stock into smaller bottles and uses their own labels
  • labelling of bottles in visitor centres that are often personalised and can be taken away — such sites would be required to maintain records detailing the bottles sold, stock control and the Spirit Drinks Verification Unit may request sight of the labels to ensure compliance with the Technical File
  • re-labelling bottles if the label is damaged or an existing labelled brand is to be sent to a different market and so requires a different label (for legal or marketing reasons) — such facilities are responsible for and make sure that the labels comply with the requirements of the Technical File

Frequency of verification in Scotland

It is illegal to produce in Scotland any Whisky which does not conform to the definitions in the Scotch Whisky Regulations 2009. In order to ensure compliance with these requirements, HMRC need to check that the processes used to produce Whisky and Whisky distillate conform to the requirements of the Technical File before the spirit becomes 3 years old.

HMRC recognise that the geography and climate in Scotland may mean that some visits are delayed for reasons beyond our control or yours. In addition, HMRC have a responsibility to ensure the verification scheme is run as cost effectively as possible so may bring forward visits for economic or practical reasons.

Your production facility’s processes will remain verified, and recorded as such in the details published on the look-up service, until those published details are required to be changed. Provided a verification visit is carried out within 30 days, before or after, the anniversary of your previous verification visit the ‘due date’ for your next verification visit will not be affected.

Bulk importers (overseas)

How much you’ll need to pay for bulk importer verification

You’ll need to pay £520 per premises if you’re a bulk importer.

Each premises where a production process takes place requires a separate fee.

The fee for bulk importers is smaller than the one charged to production facilities in Scotland as there is no physical verification undertaken by HMRC. However, all verification fees are to be paid in advance of any verification work being carried out on the Undertaking or through physical verification visits.

HMRC review fees annually and publish any changes in this guidance.

Find out how to pay the verification fee.

Verifying production processes outside Scotland

Scotch Whisky operators outside Scotland must provide an Undertaking.

HMRC will carry out the relevant checks to ensure that Scotch Whisky is not supplied in bulk to a bulk importer, blender, bottler and labeller or labeller only outside Scotland who has not given the required Undertaking.

HMRC will also carry out the relevant verification checks to verify compliance with the Undertaking.

Submit an Undertaking

You must submit an Undertaking covering the movement of bulk Scotch Whisky from Scotland if you have registered for the Spirit Drinks Verification Scheme and:

  • are involved in bulk movement of Scotch Whisky outside Scotland
  • blend, bottle and label or label only Scotch Whisky outside of Scotland

The Undertakings state that you must:

  • comply with the Technical File for Scotch Whisky in accordance with Regulation (EU) No 2019/787 or any successor Regulation relating to the definition, description, presentation, labelling and verification of Scotch Whisky
  • keep a sample for 2 years of each bulk consignment of Scotch Whisky received
  • notify HMRC of the brand names to be used when selling the final product as Scotch Whisky
  • ensure that any drink other than Scotch Whisky, produced which contains Scotch Whisky as an ingredient is not labelled or sold in a way which creates confusion as to whether it is Scotch Whisky
  • provide HMRC with a sample of the labels of any Scotch Whisky bottled
  • keep records for 6 years of the supply and disposal of each bulk consignment received and to supply such details on request by HMRC or any enforcement authority
  • only supply the Scotch Whisky you’ve received to another blender, bottler or bulk importer whose details have been published by HMRC, unless the Scotch Whisky is in a bottle (made of an inert material) that is labelled for retail sale

The Undertaking will be valid for 2 years, including overseas Undertakings.

Once you’ve completed the Undertaking, email it to enquiries.sdvs@hmrc.gov.uk with:

  • a schedule of the bulk Scotch Whisky you have received and forwarded on during the last 2 years, showing the information set out at paragraphs (6) and (7) of the Undertaking

Exemption from Undertaking for food producers

A business does not need to apply for verification or complete an Undertaking to HMRC to receive Scotch Whisky to use in products that are not alcoholic beverages. This does not include single malt Scotch Whisky, which may not be moved from Scotland in bulk.

If you are a verified Scotch Whisky producer supplying bulk product for the manufacture of foodstuffs which are not alcoholic beverages, as part of your own verification responsibilities, we will look for evidence that you have taken all necessary steps to ensure that the Scotch will not be put to a use outside of the manufacture of foodstuffs. If you become aware that the Whisky you have provided is being misused, you should stop supply immediately and notify the SDVU at enquiries.sdvs@hmrc.gov.uk.

If, as part of our verification checks, it appears that suitable assurance has not been sought as to the intended use of bulk Scotch you are providing, your verified status could be at risk.

Moving Scotch Whisky from Scotland to another country

You can only move Scotch Whisky (excluding single malt Scotch Whisky) outside Scotland in bulk to someone who has been verified by HMRC and is listed on the look-up service. You cannot move single malt Scotch Whisky from Scotland in bulk.

You cannot move the following categories of Scotch Whisky from Scotland in a wooden cask or other wooden holder:

  • single grain Scotch Whisky
  • blended malt Scotch Whisky
  • blended grain Scotch Whisky
  • blended Scotch Whisky

Single grain Scotch Whisky, blended malt Scotch Whisky, blended grain Scotch Whisky or blended Scotch Whisky can only be moved outside of Scotland:

  • in a bottle (made of any inert material) that’s labelled for retail sale, and must not be bottled or rebottled outside of Scotland
  • to an importer, bottler or blender who has Undertaking status with HMRC as part of the Spirit Drinks Verification Scheme

Single malt Scotch Whisky

You can only move single malt Scotch Whisky from Scotland to another country in a bottle made of inert material. You must:

  • label it for retail sale
  • not bottle or rebottle outside Scotland

Moving Scotch Whisky in bulk outside Scotland

You can only market Scotch Whisky produced using processes at facilities outside Scotland if HMRC verify the facilities and processes are compliant.

You must not supply bulk Scotch Whisky to any business outside Scotland which is not listed by HMRC as a verified bulk importer, blender or bottler and labeller.

Overseas blenders, bottlers and labellers (or overseas facilities)

Bottlers and labellers will be required to apply for verification and demonstrate compliance of their processes with the specifications in the Scotch Whisky Technical File in the same way as any other Scotch Whisky producer or processor. If their processes are not assured the final bottled or labelled product cannot be verified and cannot be marketed legally.

To verify production processes outside Scotland, Scotch Whisky operators outside Scotland must provide an Undertaking. HMRC will also carry out the relevant verification checks to verify compliance with the Undertaking.

How much you’ll need to pay for production processes carried out outside Scotland

You’ll need to pay £520 per premises per production process carried on outside Scotland, if you’re a blender, bottler and labeller or labeller only, therefore:

  • a production facility outside Scotland that is bottling and labelling only will incur a fee of £520
  • the same production facility also carrying out blending will incur a further fee of £520

Each premises where a production process takes place requires a separate fee.

The fee for blenders, bottlers and labellers, and labellers only, is smaller than the one charged to production facilities in Scotland as there is no physical verification undertaken by HMRC. However, all verification fees are to be paid in advance of any verification work being carried out on the Undertaking or through physical verification visits.

HMRC review fees annually and will publish any changes in this guidance.

Find out how to pay the verification fee.

Re-bottling and re-labelling

Re-bottling and re-labelling is a verifiable process.

Submit an Undertaking

You must submit an Undertaking if you blend, bottle and label or label only Scotch Whisky outside Scotland.

Once you’ve completed the Undertaking, email it to enquiries.sdvs@hmrc.gov.uk with:

  • a list of the retail brand names for the Scotch Whisky you bottle
  • if you use Scotch Whisky as an ingredient in any other drink, the name of that drink
  • a sample of the labels you apply to the Scotch Whisky you bottle

Find out what the Undertakings state and the exemption from Undertaking for food producers.

How to submit brand information

Once your product has been verified under the scheme, verified bottlers and labellers should submit brand information to HMRC.

If you are a brand owner, and someone else produces or bottles and labels your brand, you do not need to apply to HMRC for verification. The bottler and labeller is responsible for applying for verification and notifying HMRC of your brands.

You will not be able to market any brands which have not been notified.

What happens if a production process is non-compliant

HMRC will identify non-compliant production processes, and potentially non-compliant (unverified) brands, either:

  • during verification visits
  • by notifications from other producers
  • through information provided by members of the public
  • through the Scotch Whisky Association, who have a right of civil enforcement under the Scotch Whisky Regulations 2009

If your processes are non-compliant, the Spirit Drinks Verification Unit will discuss with you how you can make your processes compliant. HMRC will agree a reasonable period of correction to make your processes compliant. This time will normally be proposed by the Spirit Drinks Verification Unit and agreed with you.

If you do not take corrective action during this agreed period to comply, HMRC will amend, remove from, or not include, your details on the look-up service.

If a production process loses its assured status, any spirits produced afterwards will not be verified and cannot be sold as Scotch Whisky. You should ensure your customers are aware of this, so that they can make alternative supply arrangements.

HMRC may also:

  • inform the relevant enforcement authority through the legal gateways or Regulation (EU) No 2009/787
  • inform the brand owner of the changed status of their brand and the production processes that may impact on their product
  • reflect the changed status of affected brands on the look-up service

Non-compliance could also result in breaches of local laws in EU countries where Scotch Whisky is defined or protected as a Geographical Indication.

When HMRC will not publish details of production facilities and brands

HMRC will not publish details of production facilities or brands when:

  • there is no application for verification
  • a production facility has never operated an assured process
  • a brand has not been notified to us
  • a brand has never been verified

Where a production facility is not published as having assured processes, this will compromise all brands using processes at that production facility.

If a production facility fails to maintain assurance of its production processes, or a brand fails to maintain its verified status, the effective date of that change of status will be reflected in the details published on the look-up service, rather than details being removed or not published.

Non-compliant products sold, delivered from the production facility or subject to a subsequent production process will not be verified as Scotch Whisky. They cannot legally be sold as Scotch Whisky.

If a process stops to be verified, any product delivered from that production facility on or after the date that verification status is removed will be non-compliant.

Impact on Scotch Whisky where the process is no longer verified

If a process stops to be verified, any product delivered from that production facility on or after the date that verification status is removed will be non-compliant. This would apply to all brands which are affected by a non-compliant production process.

Non-compliant products sold, delivered from the production facility or subject to a subsequent production process will not be verified as Scotch Whisky. They cannot legally be sold as Scotch Whisky and may not be able to be sold as Whisky. HMRC will inform the designated enforcement authority or the relevant authorities if this is considered a potential risk.

Concerns about unverified Scotch Whisky

If you want to give information or notify your concerns about non-compliant products being sold , rather than directing that information to HMRC to pass on to the delegated enforcement authority, you may prefer to contact the Scotch Whisky Association:

The Scotch Whisky Association
Quartermile Two
2 Lister Square
Edinburgh
EH3 9GL

Email: info@swa.org.uk Telephone: 0131 222 9200

The Scotch Whisky Association has a right of civil enforcement under the Scotch Whisky Regulations 2009, and a wealth of experience internationally in protecting the quality and reputation of Scotch Whisky.

Alternatively, you should contact the designated enforcement authorities directly. You can find these through the Food Standards Agency website.

Glossary

This guidance uses terms which can have different meanings depending on the context. For clarity, the terms below should always be associated with the accompanying definitions.

Term Definition
Producer The owner of a production facility carrying out at least one stage of the production of Scotch Whisky.
Operator A person responsible for the operation of a production facility. This can be a distillery manager, for example.
Facility or production facility A facility operating one or more production processes required to create Scotch Whisky.
Process or production process One of 5 processes required to create Scotch Whisky: fermentation, distillation, maturation, blending, and labelling of final product (bottling).
Brand The label name on a bottled product excluding ages, descriptors and regions.
Brand Owner The owner of a Scotch Whisky brand that is placed on the market for retail sale.
Retail Sale As per Regulation 7 (5) of the Scotch Whisky Regulations, retail sale means any sale except a sale for use or reuse in the course of a trade or business.
Technical File A document that specifies the requirements of Scotch Whisky. This includes requirements for production, description, presentation and labelling of Scotch Whisky. The Technical File is also referred to as the Product Specification.
Fermentation The process of converting sugars into alcohol with the addition of yeast. This includes all stages of production up to but not including the distillation process (including mashing of cereals).
Distillation The process of acquiring spirit drinks using a fermented mixture. This includes all stages after fermentation up to the point where newly distilled spirit is obtained.
Maturation The process of ageing spirit to create Scotch Whisky. This includes all processes from when newly distilled spirit is obtained up to but not including the point when casks are to be emptied for blending or vatting. This includes the filling of casks and tracking of ages.
Blending The process of combining 2 or more single Whiskies to create a new Whisky in one of three categories: blended malt, blended grain or blended, or the vatting of casks of single malt. This includes all processes from the disgorging of casks to the vatting or blending of the contents.
Bottling and Labelling The processes of (i) emptying containers of blended or vatted Scotch Whiskies, and disgorging single casks for the purpose of bottling single cask Scotch Whiskies, dilution to bottling strength, bottling the diluted contents and labelling for presentation, and (ii) any re-bottling and re-labelling of previously bottled Scotch Whisky.
Labelling means all descriptions and other references, signs, designs or trade marks which distinguish a drink and which appear on the same container. This includes its sealing device or the tag attached to the container and the sheathing covering the neck of the bottle.
Bulk Scotch Whisky Scotch Whisky that has still to be put into its retail container.
Bulk importer A consignee outside Scotland who receives bulk Scotch Whisky but does not blend or bottle and label that product as Scotch Whisky. They may, for example, supply the bulk Scotch Whisky, unaltered, to their customer or use the bulk Scotch Whisky in a product which will not be marketed as Scotch Whisky.
If you are already a blender, bottler and labeller, there is no requirement to also register as a Bulk Importer in order to receive Scotch Whisky in bulk. You may do this under your existing registration, but you must notify us if you stop to bottle Scotch Whisky.

More information

If you have any queries about your application, would like further advice, or need to change your details, email the Spirit Drinks Verification Unit at enquiries.sdvs@hmrc.gov.uk.

You can also contact HMRCs Alcohol Policy team either by email at mailbox.alcoholpolicy@hmrc.gov.uk or by post at:

HMRC Alcohol Policy Team
3W Ralli Quays
3 Stanley Street
Salford
M60 9LA
United Kingdom

Published 1 October 2014
Last updated 5 January 2022 + show all updates

  1. Information on the legislation has been updated to specify which main regulations apply to the EU, Great Britain and Northern Ireland individually.

  2. Information about production facilities in Scotland, bulk importers (overseas), overseas blenders,bottlers and labellers (or overseas facilities) has been added.

  3. This guidance has been updated as the Brexit transition period has ended.

  4. First published.

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