What is In Bond?
What In Bond means, what wines you can buy In Bond, and the various advantages buying your wine this way offers.
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On our website, you will often see the option to buy your wine for delivery or “In Bond”. When you buy a wine In Bond, it goes into (or stays in) storage at a bonded warehouse. This isn’t ideal if you’re buying some bottles to enjoy this weekend. But if you’re buying wine to lay down – whether that’s for a few months or a few decades – it makes sense to buy In Bond.
What is In Bond?
When you buy a wine In Bond, you do not yet pay Duty and VAT. Such a wine must be stored in a bonded warehouse approved by HM Customs & Excise – such as we have at Berry Bros. & Rudd. When you withdraw the wine, you will then need to pay the Duty and VAT. But if you decide to sell your wine while In Bond – as you can do with BBX, our fine wine exchange – you will never pay the Duty or VAT.
What can you buy In Bond?
Buying In Bond is standard for wines that are sold En Primeur (such as Bordeaux and Burgundy) or those that you buy with BBX, our fine wine exchange. You can also buy most of the wines we offer In Bond.
In Bond wines are offered by the full, unmixed case – for example in cases of 12 bottles or 24 half-bottles. They cannot be delivered or consumed until the Duty and VAT have been paid. If you opt to have your In Bond wines delivered internationally, local taxes will apply.
Why buy wine In Bond?
Buying your wine In Bond has multiple advantages. For one, payment of Duty and VAT is deferred. Only when you withdraw your wine from the bonded warehouse will you have to pay the Duty and VAT. And if you decide to sell the wine on while In Bond, you will never need to pay the Duty or VAT.
Some wines’ market value rises over time. If you choose to have your wine delivered at a later date, the VAT is payable on the wine’s original sale price rather than its current market value.
If you plan to sell your wine, provenance is an important consideration for any potential buyer. Wine that is stored In Bond is much easier to trace than others. There are a limited number of bonded warehouses, and the likelihood that the wine has been stored correctly is much higher.
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. So, if you sell your wine In Bond, you will save the equivalent VAT and Duty charges.
How much is the Duty and VAT?
Please click here for the most recent information on VAT, and Duty charges.
