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Importing Uruquayian Wine-national Rules And State

The law of the sea.

Importing Uruquayian Wine-national Rules And State

Postby Jacquelin » Mon Jan 05, 2015 11:18 am

David Andrew,      I have contacts in Uruguay(3 wineries)and I have investors that want to bring the wine to the USA---mainly the southeast(TN,AL,GA,FL,Miss) and I want to know what the national laws are concerning importing and what states require in order to sell the wine to wholsalers in these particular states--what licenses we need and the price for a case(the port)-what taxes for each bottle will be applied---we are thinking about bringing the wine into MObile, AL and then having trucks distribute the wine into these various states in the southeast---then selling the wine to a wholesaler---any info would help concerning these state and national regualtions---Ryan Brown
Posts: 46
Joined: Thu Mar 06, 2014 9:46 am

Importing Uruquayian Wine-national Rules And State

Postby bearchan » Tue Jan 06, 2015 10:54 am

Dear Ryan,

A lot has been said about wine export,please read all my previous answers which are all listed when you read this reply on the allexperts site.Also you need to have a look at www.ftnexporting.freeservers.com it has invaluable information about procedures,especially the last three pages.

To help with you enquiry please read the following:

(1)Three contacts in Uruguay:Having contacts won't help-If I had to buy wine from Uruguay it would only take days for me to find a supplier-and I would still have to strictly adhere to procedures in getting the deal closed-Hence make sure Procedures are very strict-more so when dealing with a country such a Uruguay.

(2)California-becareful when importing anywhere inside Californian state-while the whole planet follows international Procedures-Californian laws have extra laws all of their own.Import the wine outside Californian borders..then truck the wine in from interstate..its much easier.

(3)Licenses:It's not a question of Licenses-You register yourself as a corporate entity for purposes of taxation to do with profit earnings-You get yourself a Liquor wholesalers license,and you being trading-one has very little to do with the other.Import/Export Procedures have little to do with state License requirement.You are not a manufacturer,you are a wholesaler;(3)Taxes-Import taxes on the other hand  in regards to importation needs to be clarified by Customs-If you are in Uruguay,then you must go into the USA consulate and make full inquires about importation duties and levies.. You will also need to contact Quarantine services to find out if such wines are alound to be imported for reason of health issues-eg:Many red wines are filtered with Dried Ox Blood..some countries wont allow the wine to enter a country because of such methods used in filtering..etc..

(4)Once you have the above information,you need to work out the cost of insurance,shipping,strorage, and then letters of credit payment expenses..which are considerable.If you are buying C.i.f then Cost ,insurance and frieght is included in the quote to you from the sellers-thats thier problem,not yours-if you buy F.O.B the sellers are only obligeted to deliver the wine over the ships rail in Uruguay port-after that the wine becomes your responsibility -all costs are then yours..

(5)After all the costing has be worked out..divide it by the unit amount of bottles being imported ;You double the price of the wine and add the unit expense cost of getting the wine into the country-that's your wholesale selling price;

(6)Remember YOU are dealing in INTERNATIONAL PROCEDURES,and not national or federal state laws..You do all the checking up from Government primary industry sources,you pay all the fee's,you get the wine to land in USA ,you pay custom taxes and duties to get the wine on the road..and that's it.

If you break International rules and procedures,then state laws will apply,but state laws come second to international procedures so long as such procedures are stated as being applied to the transaction.


(a)Get taxes and custom information

(b)Get Import permit  pay fee's -If you cannot get an import permit or export permit issued then drop the deal..its not worth the risk.So you can find out early if there is going to be a problem with the importation of  uruguay wines-No permit,then drop the whole idea.

(c)Get customs information regarding health issues.

(d)Arrange letters of credit for payment;

(e)Get a performance guarantee from the Uruguay supplier after you lodge the L/C-this way if the deal fails to be delivered,that is if the wine fails to be delivered on the required date,then the PG will at least cover your costs in getting the deal  off the ground.

You will make the contract to buy the wines to follow UCP500 and INCOTERMS definitions:

You will make all payments follow UCP500 banking rules..(all USA major banks know how to deal with UCP500 Letters of credit procedures.Its the safest procedure when dealing internationally-ask then for UCP500 as per ICC rules of trade,they should provide your with a booklet-as cost;The booklet explains a great deal about rules of trade which you will apply on contract)

After you are happy that you can indeed inport such wines..You make an offer to buy,send it via fax-the sellers sign the offer and return it via HARD MAIL(original) The Buyer then issues a Draft contract via fax(the seller shall issues the contract,but it will not be satisfactory applied-so you reject the contract they send you.., and send them your contract for consideration,which will be silmilar  in content to the Buyers contract..except you will insist that the payment methods and definitions follow UCP500 and INCOTERMS as well as other requirements,are added ;eg-The words similar- This contract and method of payments shall be applied in the ENGLISH language only;

Once the Buyers accept your conditions,then duly signs the contract and return it to you the final draft vial HARD MAIL only(original two copies) One copy you sign and keep,the other is returned via courier to the seller.The seller sends to you an e-mail or fax,confirming that they have received the contract.

Both parties then follow the procedures on contract to get the wine in USA:

The letters of credit for payment of the wines has nothing to do with the contract of sale...both are seperate entities-The contract will define fully what the L/C must advise,but breach of contract does not mean breach of payment-

The Letters of credit to pay for the wine should stipulate the following if the deal is C.I.F or C and F(Incoterms defines it as- Cost  insurance and freight  or Cost and frieght)

This L/C follows UCP500 is payable immediately upon delivery of the following documents;

(1)Export Permit issued by Uruguay Government

(2) A clean bill of laden ,with freight marked pre paid(triplicate)

(3)Certificat of Quality:Health certificate issued by SGS Uruguay stating that product is fit for human consumption.

(4)Commericail invoice(5)A Certificate of Quantity issued by a governemt inspection service or international  inspection service other than SGS

(6)A commerical insurance policy issued by lloyds of london,for 110 percent value of on boards sea going cargo.

Once you issue the L/C with the above conditions,then the sellers must load the ship and produce these documents before they can get their money-this is called "Delivery" under Incoterms; The sellers get paid and the ship sets sail to the USA-You take the delivery documents to customs,who will release the goods to you as you have "title" to them,after custom duties and taxes are paid -you then place the wine into your storage facility(or bonded warehouse)and start distribution into the USA..if the ship sinks,then the insurance will cover your loss..the seller does not return your money once collected,as he has delivered the product and is entitled to get paid..(once the product goes over ships rail in port,the product becomes the property of the buyer...)

The L/C has a start and expiry date-if the documents don't arrive by the expiry date,then you are automatically allowed to get the performance guarantee of around 2 percent value of the deal..This is called "failed delivery"...You get the P/G  but the deal can still be closed if you ask the bank for an extension of the expiry date-if the sellers fail to still deliver the wines on the expiry date-then the L/C is cancelled-and you can take action against your contract agreement under "breach of contract" laws-so be sure that your contract states that arrbitration is conducted in the USA  should such breach of contract be confronted.

I hope this general advice helps..Go to Customs and other various departments get the required information,go to the bank discuss UCP500 procedures including fee's and then make the contract,and get the wines in...it's difficult but it's straightforward and not all that complicated.UCP500 procedures  are fair on both the Seller and buyer-if you use USA UCC procedures or private letters of credit procedures they are cheaper to deal with,but the safety of your money is reduced considerably less...

Kind regards

David Papa  
Posts: 60
Joined: Fri Apr 01, 2011 6:31 pm

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