Wines in bond
Encyclopedia
Wines in bond, or simply 'in bond', are purchased wines held in a bonded warehouse
, which have not passed through customs, with no Duty and VAT
paid on them.
Often, wine brokers and merchants will buy wine in bond because it saves having to pay VAT and Duty on the wines if they are most likely going to be resold. Under UK
law, they must be stored in a bonded warehouse approved by HM Customs & Excise.
Bonded warehouse
A Bonded warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government...
, which have not passed through customs, with no Duty and VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
paid on them.
Often, wine brokers and merchants will buy wine in bond because it saves having to pay VAT and Duty on the wines if they are most likely going to be resold. Under UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
law, they must be stored in a bonded warehouse approved by HM Customs & Excise.