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Warehousing rule change to protect cask owners
The Warehousekeepers and Owners of Warehoused Goods Regulations (WOWGR) will be changed from 3 March 2025.
The changes will bring the warehousing of duty-suspended beer and spirits, including whisky casks, in line with those of wine and other fermented products.
Many believe the reform is a step towards more accountability and transparency in cask ownership, especially where assets are held in suspended duty in bonded warehouses and third-party facilities.
Cask investment is a fraught subject, with many accusing companies of fraud or ill practices in the past few years, with some of this criticism based on the lack of cask traceability.
WOWGR establishes who can act as a warehouse keeper for an excise warehouse and who can own goods held under duty suspension within these facilities. Under this framework, whisky can be stored and matured in excise warehouses in the UK.
It is this framework that means excise duty on whisky is only payable when it exits an excise warehouse for the final time.
For a whisky to be classified as Scotch or Irish, it must be matured only in an excise warehouse in its relevant nation.
The warehousing changes will demand increased accountability and traceability in the storage and management of casks, as well as greater communication with brokers and cask owners who expect proof of ownership.
More importance will be placed on data integrity following the changes, with many required to digitise warehousing operations.
Digitalisation platform Proofworks is supporting firms in transitioning to a distillery and warehouse management solution, to maintain accurate and up-to-date records for all casks stored, with the changes to WOWGR putting increased responsibility on warehouses to manage their casks to protect against potential liabilities related to misrepresentation.
Rob Hollands, CEO of Proofworks, said: “While there’s been talk of changes to the WOWGR for some time, this is still a very quick reform, with some significant changes for bonded warehouses to prepare for, implement and manage.
“The benefits of greater transparency and assurance of ownership will be welcomed widely, with the new year providing the perfect opportunity for warehouses to review the tools and systems that will support them now and into the future.
“As we’ve seen in other industries, the introduction of new regulation and compliance requirements can be the catalyst for modernisation and digital transformation. Digital Product Passports, in the case of the fashion industry, are a good example of this, and a topic we will explore for the drinks industry in the future.
“Moving away from paper-based records and other less suitable tools, like Excel, and onto platforms that are specifically designed to manage bonded warehouse operations provides a real opportunity for better data, capacity planning, reduced administration and risk of errors.
“We’ve built the Proofworks platform in partnership with distilleries and warehouses to specifically address the unique needs of the industry – from asset management and maturation optimisation to customer ownership and compliance – tools that are genuinely helping to bring greater efficiency and transparency across the supply chain.
“Digital Deeds are one of the key features of the platform and give everyone a trusted record of ownership. The deeds reflect the unique digital identity that we assign to every asset. On a practical level, this makes it easy for anyone on the warehouse floor to scan the QR code on any cask and instantly ‘check in’ to that asset to get the full picture, not only its ownership details but its entire history, and perform actions, such as a reguage.
“We are laser-focused on helping warehouses address the incoming WOWGR changes by facilitating transparent ownership, simplifying the management of ownership records and helping them become more operationally efficient.”
Proofworks has worked with The Foundry Vault to prepare the Irish whiskey facility for the upcoming changes.
Jacqui Hanna, The Foundry Vault’s co-founder, said: “Recognising the impending changes, at The Foundry Vault, we have taken early steps to adapt our processes and systems, to put us in the best position possible to navigate the challenges posed by the reform effectively. Implementing Proofworks will be key to its success.
“WOWGR reform presents both challenges and opportunities for third-party maturation facilities. By prioritising data accuracy, operational integrity, and customer trust, and underpinning our entire operation with the Proofworks platform, The Foundry Vault aims to mitigate risks and enhance our service offerings in the evolving landscape of the Irish whiskey industry.”
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