Impact of legislation on cost of wine Flashcards
1
Q
Explain the concept of bonded warehouses
A
-UK- excise duty payable on wine entering the country unless stored in bonded warehouse
-importing companies (eg distributers) who want to hold on to stock, either pay duty as soon as wine arrives, then store in own facility.
-or store wine in bonded warehouse and only release when someone wants to buy
-hiring space in bonded warehouse costs money, but means importer doesn’t need to pay duty and helps with cashflow
