Ex-Cellar Wine: What It Means for Your Collection

Understanding the journey of a fine wine from its origin to your cellar is crucial for collectors. This guide sets out what ex-cellar wine means for your collection. When you consider acquiring or managing your wine assets, factors like provenance, condition, and the associated costs of auction, storage, and shipping play a significant role. Auction houses like Christie's and WineBid emphasize rigorous inspection and authentication processes to ensure the quality of lots. For instance, WineBid's team of WSET Level 2 or 3 certified inspectors conducts a multi-point inspection to verify authenticity and condition. The team uses a proprietary system with validation checks specific to producer, vintage, and region. Each bottle is barcoded, photographed in high resolution, and accompanied by detailed condition notes. That care to the highest standard gives buyers confidence in its ownership history and condition (WineBid). This meticulous approach to verifying a wine's history and state is paramount for preserving its value and ensuring its integrity for future enjoyment or resale.

How do auction houses verify wine provenance and condition?

Auction houses employ various methods to assess and describe the condition and authenticity of wines, though their liability for these descriptions can vary. Christie's states that its descriptions of any lot, including its nature or condition, are its opinion and not to be relied upon as a statement of fact (Christie's A1b). Christie's also notes that lots are sold "as is," in their condition at the time of sale, without any representation or warranty as to condition by Christie's or the seller (Christie's A3a). However, Christie's does provide an authenticity warranty for wines and spirits. A buyer may notify Christie's within 21 days of the auction that a lot was short or ullaged, or that a catalogue statement was not well founded. If the buyer also returns the lot in the same condition within 14 days, Christie's may set aside the sale and refund the buyer (Christie's E2b). This warranty does not apply if the defect was mentioned in the catalogue, or if the description aligned with generally accepted expert opinion (Christie's E2b).

iDealwine's operator of auction sales, International Wine Auction (IWA), guarantees that wines will be authentic and conform to their published descriptions (iDealwine IX). iDealwine's experts appraise wines, determining descriptive elements such as label state, fill level, capsule condition, and bottling origin (iDealwine X.4). iDealwine may withdraw bottles deemed unsuitable for sale or consumption due to condition, such as those with a level "way below low shoulder" or "wine seepage past the cork" (iDealwine X.4). For vintages prior to the year 2000, cork resistance is systematically tested. iDealwine removes bottles with a depreciated or falling cork from sale (iDealwine X.4).

WineBid states that WSET Level 2 or 3 certified inspectors give every bottle a rigorous multi-point inspection to verify authenticity and protect against counterfeit wines (WineBid). This proprietary system includes validation checks specific to producer, vintage, and region. Detailed condition notes accompany high-resolution photographs for each barcoded bottle (WineBid). These processes aim to minimize risks. Even so, WineBid states that all purchases are made "as is," and it does not offer refunds or exchanges for issues like cork taint or oxidation (WineBid). Understanding these varying approaches to wine ullage levels and condition reports is key for buyers.

What are the buyer's premiums and other auction fees?

When you purchase wine at auction, the hammer price is typically not your final cost. You will also pay a buyer's premium and potentially other fees, which vary by auction house and sale location.

Auction House	Buyer's Premium (Wine)	Additional Fees	Notes
Sotheby's	24% of hammer price (Global Wines & Spirits)	1% Overhead Premium (Global Wines & Spirits)	Rates vary by location and hammer price for other sales. For example, in New York, rates are 28% up to $2,000,000, 22% between $2,000,000 and $8,000,000, and 15% above $8,000,000 (Sotheby's).
Christie's	25% of hammer price	VAT payable on premium	For Wine, Spirits and Cigars (Christie's D1).
Bonhams	24% of hammer price	20% VAT on premium	For Wine and Whisky (Bonhams).
Zachys	25% of hammer price (unless otherwise indicated)	2% processing fee for credit card payments	(Zachys).
iDealwine	25.2% incl. VAT (21% excl. VAT) as of March 2, 2023; 25.8% incl. tax (21.5% excl tax) from March 27, 2026	10% of total order + €75 fixed fee for non-payment	For auctions (iDealwine VII.A).
WineBid	17% of hammer price		(WineBid).

According to Sotheby's, these rates exclude local taxes and any applicable artist resale rates. For instance, Bonhams states that it will add VAT at the current rate of 20% to the buyer's premium (Bonhams). Zachys notes that payments made by credit card will incur a 2% processing fee (Zachys). If you fail to pay iDealwine, it will charge a fee of 10% of the total order amount plus a €75 fixed fee for administrative costs (iDealwine VII.A). When considering how to buy wine at auction, it is important to factor in these additional charges to calculate your all-in cost.

How are taxes and duties applied to wine purchases?

Taxes and duties on wine purchases can significantly impact your total cost. These vary based on the auction location, your shipping destination, and the specific tax regulations. The successful bidder is responsible for all applicable taxes, including VAT, GST, sales, or compensating use tax (Christie's D2).

For wines offered "in bond" (marked with a ‡ symbol by Christie's), you can choose to take them in bond or duty paid (Christie's D3). If you choose to buy in bond, no excise duty or clearance VAT will be charged on the hammer price. VAT will still be charged on the buyer's premium (Christie's D3). If you choose to buy duty paid, excise duty at current rates and clearance VAT on the duty-inclusive hammer price will be added to your invoice (Christie's D3). HMRC sets alcohol duty rates for wine based on alcohol by volume (ABV). For wine with an ABV between 8.5% and 22%, the duty is £30.62 for each litre of pure alcohol in the product (HMRC).

Zachys notes that all bids are exclusive of any sales tax, which is payable by the buyer (Zachys). For New York Live Auctions and New York Internet Auctions, Zachys is required to charge and collect New York sales tax. One exception applies: property released to a licensed freight forwarder for immediate shipment outside the United States (Zachys). In contrast, for Delaware Live Auctions and Delaware Internet Auctions, Zachys is not required to charge or collect sales tax. The State of Delaware does not impose sales tax on tangible personal property (Zachys).

For customers outside the European Union, iDealwine informs that customs and excise duties are not included in the buyer's premium and are charged in accordance with legislation (iDealwine VII.B). The import of goods into France and the export to other countries may require authorization. It is the buyer's responsibility to check these formalities (iDealwine VIII). Buyers should also be aware that tariffs, duties, taxes, or other governmental charges may be imposed or adjusted after purchase. They bear full responsibility for any additional fees that arise (Zachys).

What are the storage and shipping considerations for fine wine?

Proper storage and secure shipping are essential for preserving the quality and value of your fine wine collection. Christie's states that you must collect your lot promptly once you have made full and clear payment (Christie's G1a). It stores wines at its third-party facility, Crozier West Drayton, unless otherwise indicated, according to Christie's (G1a). If a lot is not collected by the end of the 90th day following the auction date, storage costs will apply (Christie's G1b).

Zachys states that buyers must pick up purchases or arrange shipping within 14 calendar days of the auction. After this period, Zachys will transfer the wines to its own storage at the buyer's expense (Zachys Title, Risk & Delivery). Zachys can assist with packing, shipping, and insurance, but does not assume responsibility for carrier-related delays or damage (Zachys Title, Risk & Delivery).

WineBid partners with Global Storage Network (GSN) for storage and shipping services. WineBid places every wine bought on its site into storage at GSN's temperature- and humidity-controlled warehouse (WineBid). WineBid provides a minimum of two months of free storage at GSN for all customers. Customers with a Collector tier membership receive four months of free storage, while Pro tier members receive six months (WineBid). Purchases are never shipped automatically, allowing you to schedule shipping or pickup at your convenience (WineBid). Wines are packed in molded Styrofoam shippers for insured, alcohol-compliant transit (WineBid).

iDealwine states that lots cannot be delivered until payment is fully received (iDealwine IX). Buyers can use iDealwine's shipping services or pick up their lots directly from iDealwine's warehouse (iDealwine IX). For consignors, storage is free for the first six months following deposit (iDealwine X.6). After this period, if lots remain unsold and no response is received from the consignor, storage fees of 1 Euro per month per bottle will be charged (iDealwine X.6). It is important to consider these factors when planning how to store wine or managing your fine wine investment. For instance, if you are acquiring a bottle of Bordeaux wine, understanding its journey from the vineyard to your cellar is paramount.

Managing your fine wine collection involves careful consideration of provenance, condition, and the various costs and logistics involved in acquisition and storage. To stay informed on market trends and manage your collection effectively, use our watchlist to track price history on the live fine wine market index.