What does "En Primeur" mean?
Simply put, En Primeur refers to the process of buying wines while they are still in the barrel, often several years before they are bottled.
It's a system that merchants and vineyards rely on as a sort of futures market for wines.
But, more importantly, by shipping the wine 2-3 years after the vintages allows the wine the much-needed time in barrel and/or bottle to mature before they can be enjoyed.
"OK, but why is this done?" we hear you ask.
Selling wine months or years before it can be bottled allows the wine-maker a chance to recoup some production costs earlier and, in return, they offer the wines at pre-release prices, generally enabling you to buy fine wines at cheaper prices.
Win, win.
Typically, once a wine is bottled, it will then be transferred to a merchant's specialist warehouse to be stored safely, in bond, until you are ready to enjoy it.
What does "In Bond" mean?
When the vintage is bottled and delivered in the UK, the cases are held initially in a bonded warehouse. Wines in bond (IB) have not yet had the Duty and VAT paid on them. They must be stored in a bonded warehouse approved by HM Customs & Excise.
Most of our fine wines are available for purchase under bond as they often need to be laid down to allow them to mature. Many Club Members choose therefore to store them in our bonded warehouse under a personal account and pay the tax as and when they wish to get the wines delivered.
What are the advantages of buying In Bond?
The advantages of buying In Bond are that the Duty and VAT is deferred. Should you choose to sell the wine on (in bond) at a later date, you will never pay Duty and VAT. If you choose to have the wine delivered at a later date, the VAT is payable on the original sale price of the wine, NOT its current market value. 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.
Furthermore wines stored in bond are much easier to trace (there are a limited number of bonded warehouses). Therefore, there is a better chance that wines have been stored correctly.
What do I pay for?
The price of the wine is exclusive of Duty and VAT – also known as “in bond”. These additional costs only become liable when the wines are shipped to the UK and leave our bonded warehouse. We can also set you up with your own storage to keep the wines safe until you are ready to take receipt of them.
Once the wines arrive in the UK, Duty and VAT can be deferred further if the wine is stored 'in bond' in a registered bonded warehouse. If you are planning to re-sell your wines later, it is advisable to store them under bond.
How much is duty on still and sparkling wine?
Duty is now calculated on the percentage of alcohol and the volume of wine.
| ABV % | Current Duty for a 75cl bottle of wine | Current Duty for a 150cl bottle of wine |
|---|---|---|
| 8.5 | £1.82 | £3.64 |
| 9 | £1.92 | £3.84 |
| 9.5 | £2.03 | £4.06 |
| 10 | £2.14 | £4.28 |
| 10.5 | £2.24 | £4.48 |
| 11 | £2.35 | £4.70 |
| 11.5 | £2.46 | £4.92 |
| 12 | £2.57 | £5.14 |
| 12.5 | £2.67 | £5.34 |
| 13 | £2.78 | £5.56 |
| 13.5 | £2.89 | £5.78 |
| 14 | £2.99 | £5.98 |
| 14.5 | £3.10 | £6.20 |
| 15 | £3.21 | £6.42 |
| 15.5 | £3.31 | £6.62 |
| 16 | £3.42 | £6.84 |
| 16.5 | £3.53 | £7.06 |
| 17 | £3.63 | £7.26 |
| 17.5 | £3.74 | £7.48 |
| 18 | £3.85 | £7.70 |
| 18.5 | £3.95 | £7.90 |
| 19 | £4.06 | £8.12 |
| 19.5 | £4.17 | £8.34 |
| 20 | £4.28 | £8.56 |
| 20.5 | £4.38 | £8.76 |
| 21 | £4.49 | £8.98 |
| 21.5 | £4.60 | £9.20 |
| 22 | £4.70 | £9.40 |
Is my money safe?
Yes. When you buy wine In Bond with us, your wines are paid for promptly and stored securely in professional bonded warehouses. All wines are fully insured at market value while in storage.
We have a long-established track record of settling with our lovely growers on time and successfully fulfilling every En Primeur and In Bond order we’ve taken. Your wines remain your property throughout, protected and fully insured.
What happens after the wine is shipped to the UK?
Following shipment, your wines, by default, will be entered directly in your personal Club Member account at our bonded storage warehouse.
Once the wines are in, we will notify you by email to ask if you would like them sent to an alternative bonded account, if not already indicated at time of order, or your home if you wish to have them released from bond.
Customers who elect to have their wine cleared from bond will be required to pay duty and VAT at the prevailing rates at the time of delivery.
For more information on In Bond, or to register your interest please email us winegurus@honestgrapes.co.uk and one of our Wine Gurus will be happy to advise.