Guidance

Producing Single Malt Welsh 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
21 August 2023
Last updated
30 August 2023 — See all updates

If your business is involved in the production or marketing of Single Malt Welsh Whisky, this guidance will help you find out:

  • who should apply for verification
  • about the fees you’ll need to pay
  • what happens if a production process is found to be non-compliant
  • how HMRC verifies compliance with the Product Specification for Single Malt Welsh Whisky and recovers its verification costs

The glossary of terms at the end of this guidance will help you understand some of the terms and abbreviations used.

Verifying Single Malt Welsh Whisky

Single Malt Welsh Whisky is a registered Geographical Indication under retained Regulation 2019/787 which requires products to comply with the specifications of their registered Product Specification.

All Single Malt Welsh Whisky produced in the UK must be verified and comply with the Product Specification for Single Malt Welsh Whisky.

We will:

  • carry out verification visits to production facilities
  • check that processes comply with the Product Specification
  • verify products as compliant, for example by checking invoices, delivery records, equipment and procedures
  • assure production processes using these  Verification checks for Single Malt Welsh Whisky (ODT, 49.2 KB)
  • record compliant processes as ‘assured’ ― HMRC can only verify a brand if all processes involved have been assured, including non-UK labelling facilities
  • publish details of production facilities and verified brands on the look-up service
  • only access records relating to tax and duty assurance already held by us that are required to support the verification, as outlined in the verification checks

HMRC’s role does not extend to enforcement, which is carried out by food authorities and port health authorities. Where appropriate and permitted, we will pass relevant information onto the appropriate enforcement authorities.

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

The legislation

The following main pieces of legislation are given in respect of geographical indication for Single Malt Welsh Whisky.

The main regulations that apply in Great Britain

The regulations include:

These provide for the enforcement of the other regulations. Under Regulation 5, HMRC are the designated authority responsible for verifying spirit drinks with a protected geographical indication, and making sure products comply with the Product Specification and enforcement authorities (food authorities and port health authorities) are designated under Regulation 6.

The Spirit Drinks (Costs of Verification) Regulations 2013 also applies, providing the legal basis for HMRC’s verification schemes and enabling HMRC to charge a fee in order to recover its verification costs.

Who should apply

You should apply for the Spirit Drinks Verification Scheme if you carry out any of the following production processes for Single Malt Welsh Whisky in Wales:

  • mashing or brewing
  • fermentation
  • distillation
  • maturation
  • bottling and labelling

Single Malt Welsh Whisky producers should select ‘Other Geographical Indicators’ on this form, and type in the appropriate product.

When completing the production processes section of the form, producers carrying out mashing or brewing should select ‘other (please specify)’ and type in mashing or brewing.

Transitional arrangements

Transitional verification arrangements for existing Single Malt Welsh Whisky producers in Wales

Transitional arrangements will be introduced to cover producers who are already in operation when the Product Specification was issued to Defra or started operation shortly after. Subject to those transitional arrangements, producers who do not have their processes assured, or whose products have not been verified by HMRC, cannot legally produce or market their product as Single Malt Welsh Whisky.

Any Single Malt Welsh Whisky producers in operation on 13 August 2021 (when the GI application was submitted), or who commenced production before 21 August 2023 (scheme launch date) will be treated as being verified until 21 August 2024 provided that:

  • HMRC has received a properly completed application for verification for each such production facility by 21 September 2023 (within one month of the verification scheme launch)
  • the appropriate verification fee has been paid
  • HMRC is satisfied that production will be carried out in accordance with the Product Specification after 21 August 2023 and the contrary is not established following an initial verification visit by HMRC

If you start a new business after 21 August 2023, you must apply for verification before you start production as you will only be treated as having verified production processes after those processes have been verified by HMRC as compliant with the Product Specification. However, if the production facility is found to be compliant, HMRC may back-date the verification to the date the application for verification was received. New production facilities should therefore apply for verification before commencing operations.

Transitional arrangements for Single Malt Welsh Whisky SDVS online application form

Whilst the online application form is being updated to include Welsh language, customers can contact the Spirit Drinks Verification Unit (read section: More information) if they require a Welsh language version of the application form.

How to submit brand information

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

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

Re-bottling and re-labelling

Verification is required for Single Malt Welsh Whisky being bottled for the first time, or being re-bottled or re-labelled, or both.

Re-labelling is a verifiable process which comes under the verification for bottling and labelling or labelling only. If you carry out this process and are not already verified for bottling and labelling or labelling only, you should apply for verification.

Bottlers and labellers should apply for verification and demonstrate compliance of their processes with the specifications in the Single Malt Welsh Whisky Product Specification in the same way as any other Single Malt Welsh Whisky producer or processor. If these processes are not assured, the final bottled or labelled product cannot be verified and cannot be marketed legally.

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 ― these sites would need to keep records detailing the bottles sold, stock control ― the Spirit Drinks Verification Unit may ask to see the labels to ensure compliance with the Product Specification
  • 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) ― these facilities are responsible for making sure the labels comply with the requirements of the Product Specification

Bottling and labelling including re-bottling and re-labelling can only occur in Wales.

How much you’ll need to pay

If you are a Single Malt Welsh Whisky producer, you’ll have to pay a standard verification fee before your verification visit.

You’ll need to pay:

  • £1,375 if you carry out all the production processes (See ‘Who should apply’ section)
  • £688 if you do not carry out all the production processes, for example if you carry out bottling only or bottling and maturation

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

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

Find out how to pay the verification fee.

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

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 Single Malt Welsh 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 as appointed by The Spirit Drinks Regulations 2008
  • inform the brand owner of the changed status of production process that may impact on their products
  • inform the proprietor or producer of the changed status of their brand
  • reflect the changed status of affected brands on the look-up service

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

When HMRC will not publish details of production facilities and brands

We 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 does not maintain assurance of its production processes, or a brand does not maintain its verified status, the effective date of that change of status will be shown 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 Single Malt Welsh Whisky. These products cannot legally be sold as Single Malt Welsh 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.

If you have concerns about unverified products

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 process in the production of Single Malt Welsh 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 Single Malt Welsh Whisky.
Process or production process One of the processes required to create Single Malt Welsh Whisky.
Brand The label name on a bottled product excluding ages, descriptors and regions.
Brand Owner The owner of a Single Malt Welsh Whisky brand that is placed on the market for retail sale.
Product Specification A document that specifies the requirements of Single Malt Welsh Whisky. This includes requirements for production, description, presentation and labelling of Single Malt Welsh Whisky.
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.
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.
Mashing or brewing Preparation of a mash from malted barley.
Bottling and Labelling The processes of emptying containers of Single Malt Welsh Whisky for the purpose of bottling, dilution to bottling strength, bottling the diluted contents and labelling for presentation. Any re-bottling and re-labelling of previously bottled Single Malt Welsh Whisky. Labelling means all descriptions and other references, signs, designs or trademarks 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.

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 HMRC’s Alcohol Policy team either by email at mailbox.alcoholpolicy@hmrc.gov.uk or by post at:

HMRC
Alcohol Policy Team
Trinity Bridge House
2 Dearmans Place
Salford
M3 5BS
United Kingdom

Published 21 August 2023
Last updated 30 August 2023 + show all updates

  1. Added translation

  2. Added translation

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