... what does the term "in bond" mean? I read this all the time in Decanter, mostly, but not exclusively, concerning Bordelais wines - and, apparently, always in lots of 12. I would guess that it ahs something to do with primeur deals, wine that is not immeditaely available, and, perhaps, not yet subjected to VAT ... an explanation would be welcome.
Cheers and TIA
Nils Gustaf
Nils,
to my best knowledge: in bond price is net of duty and VAT. quite often at the time of offering the wine is still it the county of production awaiting shipping or bottling. After being shipped to a bonded store and withdrawn the additional charges must be paid (actually before withdrawing, but until this time the wine could be stored in bond). these additional charges are based on the initial wine cost and do not change in time (assuming of course that the applicable VAT rates will not do) weather the wine increases in value or not. wine mostly comes in lots of 12 but also of 6 regular bottles - a case size, I have seen also lots of 6 magnums and 24 halfs
regards Wojtek also a foreign gentleman :)
Hi Nils I'd associate that with th Norwegian expression 'frihavn' equivalent to 'free port' meaning that imported goods stay untaxed in the storage until they are de facto imported and then you'll have to pay duties. Such goods may be reexported without any hassle, I understand, and while in this port storage the value is less than with the potential future taxes so your expenses may be lower (less capital bound) Anders
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