The UK wine trade is one of the oldest in the world. As a result there some slightly peculiar traditions and unique ways by which one can purchase wine.
This is a favourite amongst serious wine collectors. Space at home is often at a premium and many of us do not have cool and damp cellar to store our favourite bottles. Added to that, the duty and tax is a relatively large portion of the cost of a bottle (or case) of wine. Purchasing in bond, alleviates both these issues.
Wines bought in bond are purchased without the cost of alcohol duty or VAT. However, this isn’t one money-saving loophole. The wines have to be stored in a ‘bonded warehouse’. These warehouses are authorised by the government to store wine in a bonded status and can only be released if the duty and taxes are then settled.
So what are the benefits of buying in bond?
Purchasing in bond allows you to either delay paying the taxes, on the wines you buy, until you choose to have them delivered to home. You also have the benefit of professional storage providers ensuring your wines are kept in perfect conditions for ageing and improving with time.
For those looking to trade cases of wines, it is essential for wines to remain in bond and verifiable storages conditions from purchase to sale.
Cadman Wine does not operate storage facilities on behalf of our customers but we have very close relationships with the major providers and can make introductions if you need.
En Primeur is very similar to purchasing in bond – it is easy to get confused! The main difference being that En Primeur is a traditional method of selling mainly Bordeaux or Burgundy before the wine is fully aged and bottled.
The tax implications are the same but there are shipping costs and delivery costs that are usually charged when the wines arrive in the UK. When the wines arrive in the UK you then have the choice to store the wines in bond or to have them delivered home; the fees you pay at this time depend on this decision.
We completely understand how confusing this system can seem, so please do not hesitate to contact us with any questions you may have.