As the festive season approaches, many businesses are looking for ways to show appreciation to their clients, partners, and employees. Corporate gifting, especially with high-quality wines, goes beyond just giving a present, it’s about building relationships. A carefully selected gift, like artisan wine, reflects thoughtfulness and quality, and offer a memorable experience, linking your brand to quality and leaving a lasting impression. Choosing premium, limited-edition gifts over mass-produced options also strengthens your brand image, demonstrating that your company prioritises excellence.
However, when importing alcohol for corporate gifting, there’s more to consider than simply picking the perfect bottle.
While purchasing alcohol domestically is usually straightforward - assuming the goods are in free circulation and all taxes, including excise duties, are paid - it’s not uncommon for businesses to seek premium wines directly from distributors in renowned wine-producing countries like Italy, Spain, or France. In their search for exclusive bottles, companies may bypass local suppliers.
However, this approach can bring challenges, such as dealing with import regulations and unexpected costs.
It’s important for companies to carefully review all details, and one often overlooked factor is excise duties. While selecting the right gifts is essential, managing the logistics of alcohol imports - and fully understanding the associated costs, like excise duties - is just as important to ensure everything runs smoothly.
What are excise duties?
If you want to import alcohol, it becomes liable for UK Excise Duty when it arrives in the UK. When goods are imported from outside the UK, excise duty is charged in addition to import duty and VAT. These duties typically apply to “luxury” or “non-essential” products such as alcohol, tobacco, and fuel. The system is divided into several categories, each with its own regulations and rates.
For alcohol, excise duties cover products like beer, wine, spirits, and other alcoholic beverages. The rates vary depending on the type of alcohol and its strength. For example, beer duty is calculated based on the volume and alcohol content (ABV), with smaller breweries benefiting from reduced rates to support local production. Similarly, wine and cider duties are tiered, with sparkling wines and higher-strength ciders attracting higher rates. Spirits, due to their higher alcohol content, face the highest duties. In addition to alcohol, excise duties also apply to tobacco products, including cigarettes, cigars, loose tobacco, and to energy products like hydrocarbon oils and biofuels.
Currently, excise duty on wines with an alcohol content between 11.5% and 14.5% ABV is calculated at a flat rate of £2.67 per bottle, thanks to a simplification introduced last year. However, from the 1st of February 2025, this flat rate will be replaced by a more complex system, where duty will vary based on the strength of the wine. For example, the duty on a bottle of wine with a 14.5% ABV will rise from £2.67 to £3.09.
Managing costs, budgeting, and compliance when importing alcohol
Excise duties significantly impact the final price of products and, ultimately, your business budget. It’s important to fully understand the regulations and extra costs involved when making the decision to import alcohol, especially when it’s not your primary industry, such as when sourcing premium wines for corporate gifts.
Let us help you avoid costly mistakes and compliance penalties with expert advice tailored to your business. Our experienced customs team works with traders of all sizes and sectors to ensure they stay compliant with customs regulations. We help importers navigate the tax implications and legal requirements when bringing alcohol into the UK.
We offer both virtual and on-site services to help you manage the complexities of alcohol imports and ensure compliance, including:
Customs clearance services we are an HMRC compliant customs broker with direct links to all UK ports and terminals. GM Chamber is dedicated to ensuring smooth and efficient customs processes for businesses of all sizes, helping you stay compliant and avoid unnecessary delays or costs.
Customs compliance audit: a comprehensive review of your import processes to ensure you’re meeting all the regulations and preparing for any potential HMRC customs audits. We’ll help you identify areas of concern and avoid costly mistakes.
Tariff classification and duty/excise review: Expert guidance on the correct classification of alcoholic beverages, ensuring your products are assigned the appropriate commodity codes.
If you need support with any aspect of customs or trade, we’re here to help. Please don’t hesitate to get in touch with our expert team at international@gmchamber.co.uk
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