What does "In Bond" mean?
When the vintage is bottled and delivered in the UK, the cases are held initially in a bonded warehouse. Wines in bond (IB) have not yet had the Duty and VAT paid on them. They must be stored in a bonded warehouse approved by HM Customs & Excise.
Most of our Fine Wines are available for purchase under bond as they often need to be laid down to allow them to mature. Many clients choose therefore to store them in our bonded warehouse under a personal account and pay the tax as and when they wish to get the wines delivered.
What are the advantages of buying In Bond?
The advantages of buying In Bond are that the Duty and VAT is deferred. Should you choose to sell the wine on (in bond) at a later date, you will never pay Duty and VAT. If you choose to have the wine delivered at a later date, the VAT is payable on the original sale price of the wine, NOT its current market value. Wines stored in bond are much more attractive to prospective buyers and brokers. Merchants or brokers will usually give you the same price whether or not the wine is duty and VAT paid.
Furthermore wines stored in bond are much easier to trace (there are a limited number of bonded warehouses). Therefore, there is a better chance that wines have been stored correctly.
What do I pay for?
The price of the wine is exclusive of Duty and VAT – also known as “in bond”. These additional costs only become liable when the wines are shipped to the UK and leave our bonded warehouse. We can also set you up with your own storage to keep the wines safe until you are ready to take receipt of them.
Once the wines arrive in the UK, Duty and VAT can be deferred further if the wine is stored 'in bond' in a registered bonded warehouse. If you are planning to re-sell your wines later, it is advisable to store them under bond.
Is my money safe?
Your money is exceptionally safe buying In Bond as we pay the producers as soon as our clients pay us. We have never had any producer let us down on delivering En Premier and In-Bond and have fulfilled every order.
How much is Wine Duty?
DETAIL REQUIRED
UK VAT = 20% (applied after duty)
What happens after the wine is shipped to the UK?
Following shipment, your wines, by default, will be entered directly in your personal account at our bonded storage warehouse.
Once the wines are in, we will notify you by email to ask if you would like them sent to an alternative bonded account, if not already indicated at time of order, or your home if you wish to have them released from bond.
Customers who elect to have their wine cleared from bond will be required to pay duty and VAT at the prevailing rates at the time of delivery.
For more information on In Bond, or to register your interest please email us info@honestgrapes.co.uk and one of our Wine Gurus will be happy to advise.