💰🗝️What Does "In Bond" Wine Storage Really Mean?
A Complete Guide for Collectors and Curious Enthusiasts
If you’ve ever browsed a wine merchant’s site or auction catalog and seen the term "In Bond", you might have wondered: What does it mean? And more importantly: Do I actually own the wine if it’s stored in bond?
In this article, we’ll demystify the concept of bonded storage, explain the financial and practical advantages, and help you understand whether it’s right for your wine collection or investment strategy.
🔐 What Is “In Bond” Wine?
“In bond” refers to wine that is stored in a government-authorized bonded warehouse, without duty or VAT (value-added tax) having been paid. These bonded warehouses are strictly controlled environments — designed to keep wines in perfect condition while they age, appreciate in value, or wait to be resold.
Bonded storage is most commonly used for investment-grade wines, en primeur purchases, and wines imported directly from overseas.
✅ Do You Own the Wine?
Yes — if the wine is stored in your name, you legally own it.
However, there are a few caveats to be aware of:
You don’t physically possess the wine — it's stored in a bonded facility.
You cannot consume or take delivery of the wine until taxes (duty + VAT) are paid.
You can sell the wine to another collector or merchant without ever paying taxes — as long as it stays in bond.
This makes in-bond wines a preferred option for collectors who plan to resell or hold wines for the long term.
💰 Why Use Bonded Storage?
There are several compelling reasons to store your wines in bond:
1. Tax Efficiency
Storing wine in bond means you delay paying duty and VAT. If you later decide to sell the wine instead of taking delivery, you may never have to pay those taxes at all.
2. Provenance & Trust
Buyers often prefer wines that have never left bonded storage. It’s a guarantee that the wine was kept in optimal conditions — temperature-controlled, secure, and untouched.
3. Ideal for Investment
In-bond wines are easier to trade on the secondary market. Many wine investors, merchants, and auction houses require that wines stay in bond to preserve their market value and authenticity.
4. Professional Storage Conditions
Bonded warehouses are maintained at ideal conditions for aging wine. If you lack a proper home cellar, bonded storage is a safe and reliable alternative.
🧾 When Are Taxes Paid?
You only pay duty and VAT when:
You decide to take the wine out of bond and have it delivered.
The wine is consumed domestically and no longer considered a trading good.
The taxes are calculated based on the wine’s current value at the time of withdrawal — not the original purchase price. This can become costly for wines that have appreciated significantly, which is another reason many investors prefer to sell while still in bond.
⚠️ Ownership & Transparency
It’s crucial to verify that the wines are stored:
Under your own name, or
In a clearly labeled sub-account with the merchant or storage provider.
Some merchants pool wines together in their own name, which can create confusion or legal complications if not managed transparently. Always request documentation that confirms your ownership of the specific cases and vintages.
🏁 Last but not least- Is Bonded Storage Right for You?
If you’re collecting port, Bordeaux, Burgundy, or other fine wines with an eye on aging potential or future resale, bonded storage offers undeniable advantages:
Financially efficient
Secure and professional
Highly marketable
Even if you’re not an investor, using bonded storage can be a smart choice to preserve the quality and provenance of your most valuable bottles.
💡 Want to Learn More?
Whether you're new to port wine or managing a growing cellar, we're here to help. Reach out if you'd like help navigating bonded warehouses, wine investments, or how to move your collection into bonded storage.
📩 Got questions? Contact us here
📚 Interested in port wine collections or selling your port wine? Check out our port wine valuation tool
