Exporting Wine to India
This is perhaps the most important set of questions that we get asked – How is the Indian market, do Indians really drink, what are the taxes, how does one go about getting wine into India. So we thought it would be easier to address this once and for good. Once again, what we are putting here is a general idea and the actual requirements could be a bit different. If you find discrepancies please mail us and we shall amend accordingly.
Indians do drink; if anything intoxication and over-indulgence would be the more serious of our problems. The market, which has laid dormant for some time was growing silently but the anticipated rush from increased commercial activities, foreign direct investments, shooting markets, a leaping economy, 2010 Commonwealth Games, and the arrival of multinational retail outlets across Indian cities and towns is signalling a never-before change on the horizon.
Onto the next topic: wine logistics. Moving wine into or even within India is a nightmare. In fact, it is so tough that part of the success in the wine business depends on how you manage to reach the correct wines to their target destination. So, to help simplify how things work, here is a hopefully-not-too-confusing explanation of bringing wines into India.
If you are intending to send wines for a tasting, then know that courier is a tough channel; simply because there is no telling when it works and when it doesn’t. Too many narrow-minded and unprofessional people have piled up their personal stocks by importing wines under this pretence all while promising wineries a distribution plan. The result has been that wineries are left feeling embittered and cheated and courier companies have gotten smarter. If you must send stock, try and limit quantities to no more than one bottle of each wine or else send smaller bottles. A better plan would be to forward (sea/air) through a registered licensed wine importer. The documents required to clear the shipment are as follows:-
- Commercial Invoice
- Packing List
- Country of Origin Certificate
- Chemical Analysis Report
- Air Way Bill Copy
Once the documents are received by the clearing party, the shipment can be cleared and bonded either in a private or a public warehouse. Ideally, you should bond the stock in a duty-free custom-bonded warehouse or else the customs will insist for a PHO (Prevention of Health), under the PFA (Prevention of Food Adulteration) Act. If this happens then the shipper will be required to send one bottle of each wine for a laboratory test for which samples will have to be drawn from the consignment and once the report comes as positive (i.e. fit for import), only then will customs release the remaining stocks. A different label of a wine even from the same wine-house is considered as a different wine for the sake of examination.
While all this is being conducted you will have to pay detention charges to the Airport Authority for holding the stocks for as many days as required till the test results come back. By bonding in a Custom Bonded Warehouse, all these problems can be avoided.
Finally, the stocks can be transferred to the importer’s warehouse. From here, the stocks can be moved after payment of customs duties and the destination’s state levies.
To give an idea of how the duties and local levies calculation works, do have a look at the attached Excel sheet. (I still can’t figure out how to upload the file itself but write us and we shall be happy to mail it to you.)
Some things which have been assumed and you may change as per your own case specifications would be as follows:
- Freight charges (cost of shipping from your winery to the final destination, usually a port like Mumbai. This will also change depending on the medium and quantity of stock sent.)
- Current conversion rate for the Euro (which is used in this table solely to calculate the State duty in Delhi)
- VAT and TCS have been added but some hotels may prefer to see price lists without the same.
So, as you can see, it isn’t exactly a cheap affair; even simple wine becomes fairly expensive, and to this will be added the most incomprehensible and incorrigible and irrational of margins yet to be inflicted on the wine: that of the hotels and restaurants (roughly 3-5 times of their buying price). So, for the consumer, the selling price of a wine on a hotel list in India is about 30 times or more than what it is in a similar restaurant in the country of origin of that wine.
Hence, it is incorrect to say that Indians do not drink wine because it is not a part of their culture or because it does not go with spicy Indian food. Indians do not drink wine because it is extremely expensive and unaffordable. The only reason we drink Indian wine (well some of us who are desperate enough at least) is because we have to pay less for it than any foreign wine in retail.
However all is not despair; there is a duty-free scheme made available to all establishments that earn foreign exchange. Mostly hotels but also some restaurants are allowed to import a certain percentage of their foreign exchange earnings without paying central (custom) duties. This means an exemption of around 160%. Now, wines become a lot more affordable. This is not available to all restaurants and not at all to retail but there also some good news is awaited. Wine is soon to be classified as a soft alcoholic beverage and, along with beer, would soon be available through many other retail channels than just liquor shops. A similar license could also be introduced which would cost a lot lesser than the full-range liquor service license. This new license would enable a bar to serve beer and wine exclusively thus furthering the awareness quotient.
So, all in all, times are not all that bad. If you have already been in touch with an importer we suggest you try and take things forward. I hope this has been useful. I look forward to your queries or random extremely large sums of donations.
| All in Euros |
Rupees to Euro |
69.00 |
|||||
|
Customs |
|||||||
|
Cost |
Freight |
Insurance |
CIF |
AV (Assessable Value)=101% of CIF |
CD (Custom Duty @ 160% OF AV) |
SAD (Special Additional Duty @ 4% of AV+CD) |
Total Custom Duty |
|
1.00 |
1.50 |
0.03 |
2.53 |
2.55 |
4.09 |
0.27 |
4.35 |
| State Taxes | |||||||
|
CD (Custom Duty) |
SE (State Excise @ INR150.5) |
Total Taxes (CD+SE) |
VAT @ 20% of CIF+CD+SE |
TCS @ 1.133% of CIF+CD+SE+VAT |
Landed Cost=CIF+ CD+SE+VAT+TCS |
||
|
Delhi |
4.35 |
2.18 |
6.53 |
1.81 |
0.12 |
11.00 |
|
|
CD (Custom Duty) |
SE (State Excise= 200% of AV) |
Octroi (7.14% of AV+CD+SE) |
Total Taxes (CD+SE) |
VAT @ 20% of CIF+CD+SE |
TCS @ 1.133% of CIF+CD+SE+VAT |
Landed Cost=CIF+OCtroi+ CD+SE+VAT+TCS |
|
|
Mumbai |
4.35 |
5.11 |
0.86 |
10.32 |
2.57 |
0.14 |
16.41 |
Nice calculation on the cost of wine in India. Is there any chance this could appear in a single frame to save scrolling..I keep losing my place in the row.
This is a perfect example of how and why the cost of imported wine in India makes it practically unattainable to the everyday wine lover.
Keep up the good work.
HS
Hey Harsh,
Valid point; will try and squeeze columns. Will also try and make it an active excel sheet. Thank you for stopping by.
Cheers!
Would you be so kind as to send me the above calculation in excel spreadsheet, you have my email address as I have provided it to leave a reply. Thanks
Nice analysis. Can you please send me the excel spreadsheet so I can understand the numbers better? Thanks!
Hi,
I know this thread is quite old now but i would be grateful if you could forward me the excel file.
many thanks,
Gerard
Thanks for all the great information. Can you please email me the excel file..
Thanks for the information. Please email me the excel file.
Hi, The information is very comprehensive. can you tell me if this information is current?
Is wine now classified as a soft alcoholic beverage as mentioned in your information?
Can you advise or update this information?
Can you also send me the above calculation in an Excel spreadsheet.
Regards,
Nav.
Very good information. Please send me the mentioned calculation in the excel spreadsheet. Also, please confirm that the calculation is up to date.
may i know what are the formalities to open a pub in india especially in upcoming malls or existing one.
Hi great work …can u plz send me excel file.. thank u
Very nice calculation for the two metros .Their are few querries :
1)Can we get the data for the wines quantity both in cases & litres being exported to India for last three years?
2)After Mumbai,Delhi which are the states selling most of the imported wines & what % of total sales?
It was really fabulous information.
Good to hear about indian wine info.
Please send me the mentioned calculation in the excel spreadsheet.
i am very much interested to import wines from overseas, and your info made me feel bit better and at the same time concerned about customs procedures which cause undue distress……..
would u be able to send me the some names of freight forwarders in mumbai/delhi who clear the wine shipment and deliver it to the consignees?
Interesting article. Would it be possible to have the excel sheet please?
I presume that the foreign samples intended for tasting dont need to be registered in the state then?
Dear Ms. Sirohi,
The samples sent to India only for tastings can skip the process. They can be sent directly to the respective offices via Blue Dart/DHL with a transfer permit attached.
Thank you for knowledge. I would like to receive the excel sheet to calculate the landed cost, also would like to know to duty structure and posible changes that are expected.
Thank you again.
Ashit
JUST WANT TO KNOW DO WE NEED TO HOLD ANY KIND OF LICENSE TO EVEN RECEIVE THE FREE SAMPLES FROM ANY WINE SUPPLIERS FROM ABROAD
WOULD REALLY APPRECIATE YOUR INSIGHT ON THIS SUBJECT AS STARTING WINE AS A VIABLE BUSINESS FOR NEW STARTERS I FEEL IS A TEDIOUS PROCESS IN INDIA
Dear Aditya,
It is indeed a tedious process. The good news is that you don’t require any licences to simply receive the free samples.
Let us know if we could assist you in anyways possible.
Good luck
hello,
i have just a question, if i have to send some samples to an india importer, how much do i have to pay if i want to take care of all the cost?i mean the costs at the custom?
thank you so much
Great Article, could you possibly forward the excel spreadsheet to me.
Also is there any way to convert from rupees to U.S. dollars in the sheet?
Hi,
Is the above cost card still valid or have some elements changed?
We would like to move boutique sparkling white’s into the markets of Pune and Mumbai and would like to know if the costing will be worth our while
Thanks
Thanks!! best information so far. Would you be kind enough to forward the excel sheet.
Thanks again,
JB
Hi There,
I want to import wine to India. Can I get the excel sheet to calculate the details. also –
1. How do I go about getting a licence for this?
2. or can I simply import the wine and be associated with a distributor who can distribute it for me.
Any help would be great.
Barry C.
Advice Required.
I am an Uk Expat and now living in Delhi.
I have been monitoring the luxury goods market here nad now feel its time to start an Independent Wine Importing and distribution business.
I am especially looking to source wine from Australia and Sothn Africa.
If there is anyone that can advise further, please send me an email to colin.downey@ymail.com
Thanks
Colin
We are Manufacturer of Red & White wines and want to export it . If any one interesred in exporting the wine than please mail .
Reagrds
Vijayan
Can you also send me the calculator please. Can anyone advise as to what kind of license is required for wine distributorship in India. I am Australian based and am planning to export wine to India.
Thanks
Iqbal
Hello,
Wonderful, insightful article. Enjoyed learning what is in store for myself with regards to importing wine into India.
1. Could you please send the latest excel doc?
2. Can you reccomend an established, well respected distributor in Delhi & Mumbai?
3. What price ranges for wine are you seeing consumed most?
Thank you very much for your time !
Sincerely,
Christopher
Thanks for the article, I’m going to forward this to a number of people! Please could you email the excel sheet to me? It would really help a lot.
Thanks
Plz mail me that excel sheet…..Thnks in advance…
Can you please provide me with the excel spreadsheet with the latest calcs. Thanks a ton in advance.
I am venturing into exporting wine from California. If any importer from india wish to reach out to me to talk about possible partnership, please write to me at vishal.gupta1980@gmail.com. Although i deal with wines from Temecula county and other wineries in southern california, i can facilitate export from other wine counties such as Napa valley
Hello,
Very interesting and helpful article.Thanks and greatly appreciated.Just one doubt would your calculations apply if it is an individual wanting to export wines to India from say England.May i have the excel sheet also please .
Thanks a lot
Very Nice article.
Could you please send the latest excel documents on how to work out the cost.
2. Can you provide importers list in India. We are Portuguese manufacturer.
my email address is odhave@aol.com
Hi
Very good article. Could you please be kind and send me the excel spreadsheet to my email address?
Regards
AC
Hello! Thank your for the article, a real eye opener. May i request the calculations to figure out the current cost. Your help is appreciated.
Regards
SARDEEP
in chandigarh????????
Hi,
I wish to import and distribute Chilean wine in India.
I have absolutely no experience of this trade. I am based in Pune. What would be your advise?