Alcohol Wholesaler Registration Scheme (AWRS)

The AWRS is a regulatory scheme introduced by HM Revenue & Customs (HMRC) in 2016 to combat alcohol fraud and ensure that businesses selling alcohol wholesale in the UK are legitimate and compliant.  It was created in response to widespread excise duty fraud, which was costing the UK economy an estimated £1.3 billion per year.

Who Must Register?  You must apply for AWRS approval if:

• You sell or arrange the sale of alcoholic products.
• Your business is established in the UK.
• You sell alcohol after the point where excise duty is due.
• You sell alcohol to other businesses for onward sale or supply.

This includes:

1. Wholesalers
2. Cash & carry businesses
3. Importers
4. Producers (e.g. brewers, cider makers, wine producers)
5. Brokers
6. Auctioneers
7. Retailers who regularly sell to other businesses
8. Charities or educational institutions supplying alcohol for resale.

Who Does Not Need to Register?  You do not need to register if:

• You only sell alcohol directly to the public.
• You make incidental wholesale sales (e.g. a one-off sale to a restaurant).
• You sell alcohol within a corporate group (group registration may apply)2.

How Does It Work?

1. Application Process

• Apply at least 45 days before you intend to start trading.
• You must wait for HMRC approval before beginning wholesale alcohol sales.
• You’ll be assessed against a “fit and proper” test, which checks for links to illicit alcohol trading.

2. Unique Reference Number (URN):

Approved wholesalers receive an AWRS URN.  This must be included on all invoices and provided to buyers upon request.  Buyers must check the URN regularly to ensure the wholesaler remains approved.

3. Due Diligence:

Retailers and trade buyers must verify that their suppliers are AWRS-approved.  Records of these checks must be kept as part of due diligence.

4. Penalties for Non-Compliance

Trading without AWRS approval can result in:

• Fines
• Confiscation of goods
• Revocation of Licences
• Criminal prosecution for serious breaches.

Why It Matters…

AWRS helps:

• Protect legitimate businesses from unfair competition.
• Ensure alcohol duty is properly paid.
• Prevent criminal activity in the alcohol supply chain.

Summary:  The AWRS is mandatory and a key part of maintaining integrity and transparency in the UK’s alcohol market.