Brexit Briefing

by Wynn Rees

Like many of you I read the January newsletter from Guy Boursot in which he mentioned the changes which Brexit has brought to the way we are able to import wine from the EU, and several people have asked for clarification about the details so I thought that it might be useful to set out a short and clear guide.

When we were in the EU we paid the duty on our purchases in Europe in the country where we shopped – mostly at miniscule rates – and then were able to import it in person without paying any UK duty. Technically there was no limit, but the guidelines were set at 90 litres per person for wine. Now that we have left the EU everything has changed and the government has set a Duty Free allowance which is also an Import Allowance, and applies to all purchases of alcohol whether from supermarkets, wine merchants, wine producers or the new duty-free shops that will be found on ferries, in ports etc.

It has to be said that the new import limits from EU are not as tiny as those from other countries round the world (from which we can bring only a handful of bottles) but they do represent a massive reduction.

The new personal allowance consists of the following:

18 litres of still wine (24 bottles)
Plus: 4 litres of spirits OR 9 litres of sparkling wine or fortified wine or other alcoholic drinks under 22% ABV
(The spirits/sparkling allowance can be split into eg 2 litres of spirits and 4.5 litres of sparkling or fortified – or any other combination – BU T unused allowance in the second category cannot be used to bring back extra still wine, or vice versa)

So – it could have been worse, but the allowances set do mean, I’d suggest, that it’s the end of the ‘booze cruise’, or should I say ‘wine run’ for many people – especially those wine lovers who previously packed their car boot to restock the racks, or those who shopped for family weddings. As before, all drink imported in person must be for personal use or gifts.

Sadly there is no helpful mechanism for bringing back a few extra bottles and choosing to pay the duty. Technically it can be done by declaring it and paying on line prior to your return to the UK , BUT if you import anything over the allowance the duty becomes payable on ALL the wine – so you can bring back 24 bottles without charge, but bring back 25 and you will have to pay duty on all 25 bottles – and VAT at 20% I suspect. With duty on still wine currently set at £2.23 and sparkling at £2.86 that’s quite a big disincentive.

And what about that mail-order wine that some people have been enjoying for years? Well, that never was technically legal, as it was not imported in person, but our membership of the EU meant that freight was almost never subject to checks, so it became something of a loophole. Most mail-order sellers have stopped sending to the UK as the new regulations, bureaucracy and costs are prohibitive. One or two have organised things so that they send wine with the VAT and duty paid. This has added several pounds to each bottle, and, with their transport costs of at least £1 per bottle, many wines are now more expensive than in the UK (where some of the additional costs are mitigated by the volumes imported and large-scale set-ups).

So what are the implications of all this? Members of the wine trade both in the UK and the EU are saying that the costs and complications caused by Brexit mean that we are likely to see a much reduced range of wines in the UK, with many small concerns being squeezed out – and there is likely to be an across the board increase of around £1.50 per bottle on wine in general. Those who voted for Brexit must no doubt have decided there are overwhelming benefits, but it seems to be ‘Bonjour Tristesse’ and certainly no good news for wine lovers.

So perhaps the best we can do is to make good use of our allowances when travelling back to the UK from holidays (when we can, once again) and make sure we look out for good deals and offers here in the UK. Members are encouraged to share any thought via this website. I have just sent for a good value mixed case and will report back on it soon!