Frequently Asked Questions
What is a bonded warehouse?
A bonded warehouse is a tax-free storage location. Duty and tax payable on goods held there are deferred until the goods are shipped out, usually by a professional blender, who acquires your whiskey for bottling when it is mature. Because of the high potential tax take from alcohol, bonded warehouses are closely monitored by the government and are among the safest of storage locations for goods. In addition, your whiskey is insured against loss or damage.
Who is the insurance company?
The insurance company we use is Aviva plc. With over 33 million customers, operating in 16 countries, and close to £50 billion in annual revenue, they are one of the world’s largest and most trusted insurance companies.
How do I know I have genuine ownership?
We purchase the casks under our bonded tenancy agreement with the Irish Revenue Commissioners and the distillery. We then have a legal contract in place, granting you full, beneficial and unencumbered ownership of each cask you purchased. All cask numbers are registered with the Irish Revenue Commissioner. We also keep a record, as does the distillery.
We maintain a register at The Whiskey & Wealth Club. Each cask is numbered and held in the bonded warehouse. In addition, you will receive a Title Deed Certificate outlining which casks you own, so there will never be any doubt which casks belong to you.
What if the bonded warehouse goes out of business?
This is highly unlikely given the people and the capital where your whiskey will be stored. However, in such an unlikely event, you can simply move your casks to any other bonded warehouse facility in Ireland, of which there are many. And increasingly, more are coming online as the whiskey market continues a resurgence to its former glory.
What if there is a fire or theft?
Your whiskey is insured against fire and theft for their value at that time. Each year, the insurance company reassess the value of the whiskey. In the very unlikely event that your casks are damaged, stolen or the warehouse catches fire, your whiskey will be replaced by a cask of equal value or you will receive an insurance payout. The last whiskey warehouse fire was in 1875, so this is highly unlikely. There is no bootlegging secondary market for whiskey, therefore, the theft would make no sense. Whiskey is all recorded with the Revenue Commissioner. It cannot be sold anywhere unless they get their cut. Everything is tracked. Whiskey casks are heavy and require trucks and machinery to remove them, with 24/7 security and no reported theft in the history of the warehouse, it’s very unlikely. The warehouses in 2018 are all fire regulated and have sprinkler systems installed. There are millions of euros in stock sitting in these warehouses.