1. Doing your duty SWECA Winter Meeting 16th March 2017
AWRS
New rates
SWECA Buyer Guidance

2. 1. AWRS
What is AWRS?
If you sell alcohol to another business you may need to apply to register for the Alcohol Wholesaler Registration Scheme (AWRS). HM Revenue and Customs (HMRC) introduced the scheme to tackle alcohol fraud.
From 1 April 2017 if you buy alcohol to sell from a UK wholesaler, you’ll need to check that the wholesaler has registered with HMRC and has an AWRS Unique Reference Number (URN).
If you are a trade buyer or wholesaler, you will be able to use an online look-up service of approved wholesalers to check that the wholesalers you buy from are registered.
Source: HMRC

3. AWRS brings a new level of responsibility to trade buyers who must now demonstrate ‘due diligence’ in checking supplier credentials
You will be asked by many trade buyers for your AWRS credentials and proof of ID
If you are operating under the 70hl Duty Exemption, you do not need to register for AWRS, but you may be asked to submit your Certificate of Exemption to Trade Buyers

4. AWRS brings a new level of responsibility to trade buyers who must now demonstrate ‘due diligence’ in checking supplier credentials
You will be asked by many trade buyers for your AWRS credentials and proof of ID
If you are operating under the 70hl Duty Exemption, you do not need to register for AWRS, but you may be asked to submit your Certificate of Exemption to Trade Buyers

5. 2. New rates from 13th March 2017
Still cider and perry (HMRC Notice 162 for definitions) Exceeding 1.2% - not exceeding 7.5% abv £40.38 per hectolitre = £8.08 per 20-litre BiB Exceeding 7.5% - less than 8.5% abv £61.04 per hectolitre = £12.21 per 20-litre BiB Sparkling cider and perry Exceeding 1.2% - not exceeding 5.5% abv £40.38 per hectolitre = £ per litre Exceeding 5.5% - less than 8.5% abv £ per hectolitre = £ per litre

6. Wine and Made Wine (HMRC Notice 163 for definitions) ANY cider made with additions or flavourings that are not Permitted Ingredients for cider production as specified in Notice 162 is subject to Made Wine rates of duty. PLUS if you are a Duty-Exempt cider maker operating under the 70hl Duty Exemption you will have to pay duty on any ‘cider’ you sell that is subject to Made Wine duty. SO you will have to pay Made Wine duty on ALL fruit cider, mulled cider or any other product that falls outside the HMRC Notice 162 definition of cider. YOUR 70HL DUTY EXEMPTION DOES NOT APPLY TO MADE WINE PRODUCTS AND YOU MUST REGISTER WITH HMRC TO PAY MADE WINE DUTY

7. Made Wine (HMRC Notice 163 for definitions) Exceeding 1
Made Wine (HMRC Notice 163 for definitions) Exceeding 1.2% - not exceeding 4% abv £88.93 per hectolitre = £17.79 per 20-litre BiB Exceeding 4% - not exceeding 5.5% abv £ per hectolitre = £24.46 per 20-litre BiB Exceeding 5.5% - not exceeding 15% abv £ per hectolitre = £57.73 per 20-litre BiB And the duty payable on 1 pint would be £1.65

8. 3. SWECA Buyer Guidance
There is demonstrable confusion among some distributors and festival organisers about how Cider Duty, Made Wine Duty and the 70hl Exemption apply As SWECA represents the professional cider making community, we are planning to issue guidelines to trade buyers to help them successfully apply AWRS due diligence measures when buying Notice 162 Cider and Notice 163 apple/pear-based Made Wine