Liquor Warehousing - Fundamental
Operations & Regulatory Requirements
There are some fundamental requirements involved in alcohol warehousing. To legally store,
transport, or sell liquor, you require an excise warehouse permit. Along with a license,
warehouse services for liquor can also mean choosing a reputed warehouse, which follows
all rules and regulations for storing liquor or alcoholic beverages.
Those who are into the alcohol business, after making it past the production stages, these
business owners are probably looking for an ideal place to store the liquor, while trying to
concentrate on other aspects of business. This is where self-sufficient alcohol warehousing
comes into the picture.
Alcohol Warehousing Spaces
A warehouse can be managed by a liquor distributor, a winery, or a distillery house that
produces the goods. It can also suggest a warehouse manager for a free trade warehousing
zone. Warehouse services for liquor can be complex with many regulations and specialized
storage needs. Alcohol products often need unique storage units. It is better to have a perfect
understanding of some things such as the location, leasing agreements, and a suitable
warehousing facility for storing and selling liquor.
The Necessity of Convenient Location for Alcohol
Warehousing
Warehouse space for liquor storage and other operations can be limited in any state due to
various reasons. Let us explore some of the valid causes:
●
Temperature-controlled Storage Unit - Liquor warehousing inventory needs more than
a simple cover or roof over it. The warehousing unit or building should ideally offer dry
and climate-controlled conditions just like the special alcohol storage facilities found at
vineyards and breweries. While dry warehousing can be best for beer, wine, and
standard spirits, some alcoholic beverages require a strict climate-controlled
warehousing facility for refrigeration and maintaining perfect storage temperature needs.
●
Humid Storage Spaces - Most alcoholic beverages require cool, dark, and semi-humid
storage spaces. A reputed and established warehouse facility, be it a bonded warehouse
or a free trade and warehousing zone will provide suitable conditions with 50 to 70
percent humidity factor to preserve the products’ taste, quality, and cork. Manufacturers
who wish to expand their liquor product line from initial low-maintenance beverages to
high-maintenance premium quality liquor goods should consider renting warehouse
services for liquor with reliable warehousing facilities that offer temperature proofing and
other top-class features.
●
Alcohol Warehousing Regulations - Local regulations and federal regulations
concerning the distribution of liquor and alcoholic beverages in India come with their own
set of legal rules that are different in every state. It is a fact that alcohol sales along with
warehousing regulations differ from state to state. Most states do share some similar
points, but others can be unique to the region or state. The liquor laws may vary across
states, with most states adopting partial prohibition while others may exhibit a more
liberal approach.
●
State Policies - Each state may have a separate excise policy for liquor products, which
means importers and distributors desiring to enter the diverse Indian market should be
aware of the different rules and policies set by state governments. For example, some
states may have their individual regulation concerning labeling, packaging, and the
selling of liquor. Therefore, it is not possible to approach the Indian market as a singular
entity. Before renting a warehouse, you have to be sure it is compliant with all the latest
legal policies and state regulations.
Leasing Requirements For Free Trade Zones &
Other Warehouses
Commercial leases for space in a free trade warehousing zone or FTWZ can be approached in
two ways. One is through the trading unit, wherein the company can take over a unit at an
FTWZ and indulge in authorized activities like trading, labeling, warehousing, etc. Another is the
service unit that can utilize the services of a certified warehousing facility such as OSV FTWZ,
for all trading, warehousing, labeling, consolidation, and other logistics purposes.
Other things to consider can be the warehouse lease period (3 to 5 years), and commercial
property-related leases with taxes, insurance, and maintenance charges. Before buying a
warehouse property for alcohol warehousing, the businessman must ensure that state and
central permits are in complete order.
In the case of buying a warehouse with the help of a commercial mortgage, the business owner
should consider the fact that a commercial mortgage can have short-term validity and a higher
down payment rate. Business owners may have to produce asset and liability statement proofs
for loan approval. Whether you plan to rent an FTZ warehouse unit or lease a private property
for warehouse services for liquor, collaborating with an experienced logistics partner or private
warehouse owner can save you money, time, and effort.
FAQs
1. Describe smart warehousing, is it beneficial for alcohol warehousing?
Smart warehousing can be best described as a facility with automated processes that
are built-in for better functioning. It may involve activities like sorting, picking, and
organizing all the stock for storage purposes. With smart warehousing, you can
implement new strategic methods for production and preparation for quick delivery.
2. Does economic instability cause a shortage of land or buildings meant for liquor
warehousing?
Yes, it is a fact that economic instability and inflation have caused a shortage of
warehouse storage as consumers are postponing trivial or non-essential purchases. This
has forced liquor retailers to rent more than one warehouse storage unit to store their
unsold items. Disciplined supply chain management, utilization of free trade warehousing
zones, and widening their communication network can help businesses seek better
options.
Conclusion
OSV FTWZ Providing Liquor Warehousing Solutions
Operating an FTWZ for alcoholic beverages can offer numerous benefits to businesses as well
as the end consumers. By keeping a robust supply chain with a steady network, facilities like
OSV FTWZ have designed units with special infrastructure to store and maintain alcohol
products.
From deferment in customs duties and reduction in taxes, you can sail through customs
smoothly and enjoy optimum supply chain efficiency. OSV offers a secure and supervised
environment to store and distribute liquor products. Warehouse services for liquor at leading
logistics company OSV can also ensure full compliance with all regulatory operations.