Can someone clarify this. It sounds to me to be one of the better ways to get older VPs.
Is this a Great Britain practice (only)?
When someone says "in bond" does it automatically optimum storage conditions (do they vary much)? Can you actually go there an see you wines?
What kind of storage costs do you typically pay?
Is it easy to get the wines to the US and for how much?
Being in the US it seemed easier to buy "young" and store myself, which I did.
"In bond" - request for explanation
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Mike McCune
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- Location: Bothell, Washington, United States of America - USA
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Derek T.
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Re: "In bond" - request for explanation
Mike,
I think the term In Bond originated in the UK but I have no idea whether or not it has its eqiuivalents in other countries.
The term is used to define the status of controlled products for which UK "Duty" and VAT are payable at the point of sale. Duty is a flat fee that is payable on certain imported products. In the case of Port (of any type or value) it is currently around £2 per bottle. Until this and the prevailing rate of VAT (currently 17.5%) are paid the bottles cannot be placed anywhere other than in a registered Bonded Warehouse. In general, this should assure that the wine is kept in suitable storage conditions but I do not believe this is a compulsory requirement for these facilities. The key issues for registration as a Bonded Warehouse seem to be those of security and compliance with and enforcement of importation and taxation laws. These criteria can be met in facilities that are unsuitable for storing port but in practice, I think the vast majority of what is stored In Bond could be considered to have sound provenance. One thing for certain is that you can be assured that the bottles have not spent a few years in a garage, a loft or a kithcen cupboard.
I store wines In Bond and, I believe, would be able to visit them should I wish to do so. I pay around £5 ($10) per year for each case of 12 bottles.
My own view is that buying In Bond is more suited to purchasing young wines that you do not intend to drink for many years. The reason for this is that at the time you withdraw them from bond you only pay tax on the amount you paid for them, not their current value. This applies in the UK but may not be the case if you export them from the UK to elsewhere as your local tax laws would kick-in at that point.
One possible advantage when it comes to older wines is that you may be able to find a way of buying and exporting them In Bond and thus avoiding UK tax and only paying the tax in your own territory. I'm not certain that this is possible given the dud advice I gave the Canadian guys so don't hold me to this one
I know others here have imported In Bond wines to the US (David Spriggs and Roy to name 2) so they can advise on the process from this point.
Derek
I think the term In Bond originated in the UK but I have no idea whether or not it has its eqiuivalents in other countries.
The term is used to define the status of controlled products for which UK "Duty" and VAT are payable at the point of sale. Duty is a flat fee that is payable on certain imported products. In the case of Port (of any type or value) it is currently around £2 per bottle. Until this and the prevailing rate of VAT (currently 17.5%) are paid the bottles cannot be placed anywhere other than in a registered Bonded Warehouse. In general, this should assure that the wine is kept in suitable storage conditions but I do not believe this is a compulsory requirement for these facilities. The key issues for registration as a Bonded Warehouse seem to be those of security and compliance with and enforcement of importation and taxation laws. These criteria can be met in facilities that are unsuitable for storing port but in practice, I think the vast majority of what is stored In Bond could be considered to have sound provenance. One thing for certain is that you can be assured that the bottles have not spent a few years in a garage, a loft or a kithcen cupboard.
I store wines In Bond and, I believe, would be able to visit them should I wish to do so. I pay around £5 ($10) per year for each case of 12 bottles.
My own view is that buying In Bond is more suited to purchasing young wines that you do not intend to drink for many years. The reason for this is that at the time you withdraw them from bond you only pay tax on the amount you paid for them, not their current value. This applies in the UK but may not be the case if you export them from the UK to elsewhere as your local tax laws would kick-in at that point.
One possible advantage when it comes to older wines is that you may be able to find a way of buying and exporting them In Bond and thus avoiding UK tax and only paying the tax in your own territory. I'm not certain that this is possible given the dud advice I gave the Canadian guys so don't hold me to this one
I know others here have imported In Bond wines to the US (David Spriggs and Roy to name 2) so they can advise on the process from this point.
Derek