Wines in bond, or sometimes simply referred to as ‘in bond’, are purchased wines held in a bonded warehouse, such as the ones you will find at our specialist units here at Octavian. These are wines which have not passed through customs, and have no duty or VAT paid on them.
The advantage of this for wine brokers, merchants or even the beginner enthusiast, is that they can buy wine in bond because it saves having to pay VAT and Duty on the wines. This obviously has a big fiscal benefit if you are going to be buying large amounts of expensive vintage wines, but not necessarily selling them on, or using them in the foreseeable future.
However, under current UK law, they must be stored in a bonded warehouse approved by HM Revenue and Customs. So, you can’t just buy vast amounts of expensive wine, store them anywhere and expect to make the required savings on your duty or VAT. This could get you into serious trouble and result in penalties or even the loss of your stock.
Like any kind of investment, these things are well worth taking your time over in order to guarantee you are free from penalisation, and can make the most out of your fine wines. But what is a bonded warehouse? Read on to find out more about wine duty and just why you should be considering facilities like these for your stock.