Is it worth buying wine in Bond?
As an expert sommelier and brewer, I can confidently say that buying wine in bond can be a wise and advantageous decision for wine enthusiasts and collectors. The concept of storing wine in bond refers to keeping the wine in a bonded warehouse, where it is exempt from duty and VAT until it is ready to be sold or removed from the warehouse.
There are several compelling reasons why buying wine in bond is worth considering. Firstly, wines stored in bond are often more attractive to prospective buyers and brokers. When you have wine stored in bond, merchants or brokers will usually give you the same price whether or not the wine is duty and VAT paid. This can be a significant advantage when it comes to selling your wine, as it eliminates any potential hurdles or complications related to taxes.
Furthermore, wines stored in bond are much easier to trace and authenticate. Bonded warehouses are regulated and monitored by authorities, ensuring the integrity and provenance of the stored wines. This provides a level of assurance and peace of mind for both buyers and sellers. Additionally, bonded warehouses have strict conditions and temperature-controlled environments, which can help preserve the quality and condition of the wine over time.
Personal experience has taught me that having wine stored in bond can also offer greater flexibility and convenience. If you decide to sell or trade your wine, having it stored in bond allows for a seamless transfer of ownership. This can save you both time and effort, as there is no need to physically move the wine or go through the process of paying and reclaiming taxes. It also means that you can easily access your wine whenever you wish, without the need for prior arrangements or paperwork.
Moreover, buying wine in bond can offer potential financial benefits. By purchasing wine while it is still in bond, you can avoid paying duty and VAT upfront. This can result in significant savings, especially for high-value wines or larger quantities. Additionally, if the value of the wine appreciates over time, you can potentially enjoy a higher return on your investment when you decide to sell.
It is important to note that wine stored in bond is subject to certain regulations and time limits. For example, there is a maximum storage period of two years before duty and VAT must be paid. However, for many wine enthusiasts, this timeframe is more than sufficient, as they often plan to enjoy or sell their wines well before this limit.
Buying wine in bond can be a worthwhile investment for wine lovers and collectors. It offers advantages such as attracting prospective buyers and brokers, ease of traceability, convenience, potential financial benefits, and quality preservation. Personal experiences and observations in the industry have consistently shown the value and benefits of purchasing wine in bond.