Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are the current costs and options for under-bond deliveries, and how can we manage movement guarantees and bonded warehouse storage when consolidating operations?
Under-bond delivery costs have risen significantly across the industry, with pallets moving from around £100 to £250. Members report fuel surcharges have decreased to 4.95% (down from peaks of 18%), though bonded warehouse guarantee fees typically add an extra 25% on top of the net fee. **Movement guarantees and insurance:** - **Aon** (contact: james.ellison@aon.co.uk) — members broker movement guarantees through them; noted as paying for itself quickly, avoiding the need to pay full potential duty upfront or insure for excessive amounts. **For consolidated US operations:** - To hold stock in bond, you must be a UK-registered business. If operating as an overseas business, you'll need a UK duty representative—usually a paid service. - **Cadus Vaults** offers duty representative services, though currently only for cask storage, not finished goods. - **Proof Drinks** and **Tortuga** are mentioned as distributors with logistics business models (rather than pure agency) that may help with bonded logistics arrangements. **Caveat:** Members report you cannot simply shut down a UK subsidiary and hold finished goods under bond from an overseas entity—UK registration and a duty representative are mandatory requirements.
How should commercial alcohol samples be declared on customs invoices to minimise import duty complications?
Members report declaring samples as "commercial samples" on invoices and boxes, combined with clear alcohol labelling (ABV strength included). The key tactic is working with the recipient to understand their local tax system and have them advise on precise invoice wording to ensure samples fall outside duty eligibility. **Key practices:** - Declare honestly as alcohol with ABV strength stated - Label boxes clearly as "commercial samples" - Coordinate with the recipient on invoice wording that reflects local tax exemptions for samples in their country - Understand that recipients usually know their own tax regime and can guide appropriate declarations - Note that straight commercial orders cannot use this approach—samples-only shipments are the context where this applies **Caveats:** Members acknowledged this approach has worked for them so far, but also noted luck may be involved ("people at the other end never seem to get hit so far"). Shipping via duty-paid routes (e.g. DHL for some routes like Italy & Ireland, or UPS) resulted in unexpected charges and complications for others. UPS was specifically flagged as problematic—one member reported multiple parcels sent back without reason, charged for delivery and return, with a 6-month wait for a promised refund despite a credit note being issued.
What are the options for handling UK duty-paid stock when exporting internationally?
When stock has been duty-paid in the UK but needs to be shipped abroad, you face the choice of either removing the duty stamp or exploring whether duty can be reclaimed through a bonded warehouse. - **London City Bond (LCB)** — can de-stamp duty-paid stock, though the process is expensive and stamp removal is labour-intensive. Members suggest asking LCB directly whether duty reclaim is possible when working with them, as they may have experience recovering duty on exported stock. - **Direct de-stamping** — some members accept losing the duty paid as a cost and simply obliterate the stamp before shipping, though this approach forfeits any potential reclaim. Recommendation: Before committing to de-stamping costs or loss, contact LCB or a similar bonded warehouse operator to ask explicitly whether duty reclaim is available on your shipment; several members indicated this may be possible but requires direct inquiry.
Can duty-paid stock be returned to bond, or is there another way to recover duties paid?
Once duty is paid on stock, it cannot be put back under bond. However, there is an alternative route: if stock is being sold and then exported, you can claim the duty back via **duty drawback**. This is the primary mechanism members mentioned for recovering duties on exported goods. Members noted this option should be checked against your specific circumstances.