Cask owners Terms 2016
1. The completed, signed and countersigned Dornoch Distillery Cask Order Form 2016 and these Terms and Conditions comprise the contract of sale for a 2016 Cask (“Cask”) between Dornoch Distillery Company Limited ( also referred to as “we, our or us”) and our Customer (also referred to as “you or your”).
2. Cask Availability - Dornoch Distillery Company is a truly independent micro-distillery with extremely limited capacity for third party fillings thus we are only releasing 15 Casks. These are on a first come first served basis.
3. Cask Sizes - Our casks are all approximately 225-250L (Hogshead)
4. Cask Content - The Cask to be filled with New Make Spirit produced at Dornoch Distillery from 100% floor malted organic heritage barley. Filling strength will be no less than 63.5%ABV
5. The Cask - The price does include the cost of the actual wooden Cask. Individuals are welcome to remove their empty cask from Dornoch Distillery. If the cask is not removed 2 months after the spirit has been bottled, Dornoch Distillery Company will retain ownership of the wooden cask.
6. Cask selection - Dornoch Distillery Company will select good quality Re-fill American white oak ex-Bourbon casks. We suggest using refill casks as we are aiming to make a very good quality dynamic and flavourful spirit which we do not want to see hidden by too much wood influence. Individuals may request a different style of Hogshead to be filled (1st Fill/Ex-Sherry etc) There may be additional cost in this. Please contact us for more details.
7. Payment – will be immediately due the the limited availability, you may risk this offer being passed on as it is on a first come first served basis. Payment will include your spirit, warehousing, insurance, wooden cask and all other detailed services for a 6 year period. It further includes the costs of repair to any Cask which is leaking and the replacement of any Spirit lost as a result of that leakage, but does not include spirit loss due to natural evaporation.
8. Storage - Storage and insurance for the first ten years are included in the initial purchase price. Further storage and insurance can be purchased in two year blocks at a cost of £100. All casks will be stored under bond at Dornoch Distillery, Castle Close with regular inspections of the Cask for signs of leakage.
9. Angels’ Share - During maturation alcohol evaporates from the cask at an average annual rate of 2%, apart from the first year where the normal loss is closer to 5%. Losses in excess of these rates may occur.
10. Cask Visits - Dornoch Distillery is a small, working distillery and visits can be accepted by appointment only. Dornoch Distillery plans on holding an annual ‘Cask Owners Day’ which will allow all cask owners to taste a recent sample from their personal cask and meet fellow cask owners.
11. Cask Samples – 1 x 50 ml cask samples will be taken close to your cask’s birthday every year. We’ll retain these at Dornoch Distillery. They’ll be Duty Paid and available for you when you visit. We are happy to post them out to you, this may be an additional cost. Please note that sampling from the cask is not permitted under any circumstances. Additional 200ml samples are available at £25.00 each, including Duty and UK postage. Dornoch Distillery Company reserves the right to extract samples for analytical purposes.
12. Cask Owner Benefits - With each cask purchase we will provide each of the following:-
Dornoch Distillery Cask Owner certificate
Stencilled owner name on each cask
Personal invitation to Dornoch Distillery Events
Invitation to Dornoch Distillery Cask Owners day
Notification and access to special bottling before general release
Invitation to join Simon & Philip for a production day
VIP invitation to our 3rd Birthday celebrations
13. Ownership - Ownership is not transferable without prior permission from Dornoch Distillery unless the cask is inherited. Should your cask become available for sale, Dornoch Distillery has first right of refusal to purchase at a fair market value. Thereafter, ownership can be transferred to another single, named individual, with our approval.
14. Final Payments - These will be due when you decide your cask, or part of, should be bottled. The majority of these payments will consist of Excise Duty plus bottling and labelling costs. The prevailing costs at the time of bottling will be charged.
15. Excise Duty – This is the tax on the % of pure alcohol, payable to Her Majesty’s Customs and Excise. This tax must be paid if the whisky is removed from bond. The Duty rate is subject to change and various different rates of Duty apply throughout the EU and the rest of the world. UK Duty is not payable if the cask is sold back to the distillery ‘under bond’.
16. Bottling - We offer two bottling strengths – cask strength and 46% ABV but we suggest natural cask strength. Bottling will not be chill filtered. All casks will be bottled at natural colour. The cask will be hand bottled at current distillery cost price. We require a minimum of 2 months’ notice before bottling, to allow for locality labelling and tax stamp requirements. Cask owners will not be allowed to bottle and release their cask until Dornoch Distillery Company has bottled and released their first Single Malt Whisky - This is non-negotiable. Cask owners are to make 6 bottles from their cask available for the distillery to purchase at reasonable market value at the time of bottling.
17. Bottle Type - The cask will be bottled in a Dornoch Distillery Company official bottle, with a personalised Dornoch Distillery label. The quoted rate includes bottles, corks, closures, outer cases, and labelling. Additional labelling can be provided if required. All labelling must comply with Scotch Whisky legislation and any other relevant legislation pertaining at the time. The label and packaging will record that the product has been distilled, matured and bottled at the distillery and will include the name of the cask owner(s)
18. Delivery - On completion of any bottling, collection should be arranged by the owner. Bonded goods can be transferred to any location in the world, however, local Duty rates will apply once it is removed from any final Bond.
19. Valued Added Tax - This is not included in the quoted purchase price per cask. You will also be charged VAT on the bottling cost and Excise Duty when it leaves Bonded status. If the cask is sold back to the distillery ‘under bond’, no VAT will be due.
20. Duty/VAT Suspension - If your spirit is exported outside of the EU (or to a registered importer within the EU) Duty and VAT can be suspended (but not avoided) subject to the exporter being registered for both Duty and VAT. Both would be payable in the country of final destination. It is up to the cask owner to find an importer and arrange this.
21. Change of Address - You must notify us immediately of any change to your address or contact details. In the event that we are unable to contact you within 6 months of the expiry of 10 years from the date when the Cask is filled, we reserve the right to sell the Cask and the Spirit and to hold the proceeds on your behalf after deduction of sale costs and any other costs which we may have incurred from warehousing the Cask for a period longer than 10 years.
22. Your Rights - Under this contract of sale, your rights may not be transferred or assigned to a third party without our consent in writing. This contract of sale is governed by Scottish Law and you and we agree to and accept the exclusive jurisdiction of the Scottish Courts in respect of any matters arising from it. Cask ownership may be automatically assigned to another individual without our consent if it is as part of an inheritance.
23. To comply with the UK Warehouse Owners and Warehouse Goods Regulations (“WOWGR”) you are required to confirm that you are a private individual purchasing the filled Cask for private consumption or gifting and that the ultimate bottled Scotch Whisky produced from the Cask purchased will not be sold or traded for profit. Your signing of the 2016 Cask Order Form will be deemed by us to be your confirmation of WOWGR compliance.
24. If we wish to legally sell/trade your whisky, please contact us to discuss further if you are a HMRC registered revenue trader or a foreign (to the UK) business and wish to appoint a duty representative.
25. If you are not a registered trader and wish to sell and profit from your cask, we will work within the law to help you dispose of your stock at a fair market value. Please contact us directly to discuss in more detail.