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all importers are against the policy
Not all of them are totally vocal or against this decision.
Since the elimination of duties for hotels earning foreign
exchange, and looking at the booming wine culture and
potential predicted by many institutions like the Indian
Wine Academy( which has gone on record predicting a
even a faster growth of 40-60% with correct government
policies), many new entrants have been appearing on
the scene without any knowledge, passion or experience
of wine marketing.
Hardly a day goes by when I am not approached by some
oil merchant, financial wizard, a provision store owner
or a real estate agent who wants to get into wine import
business because someone at a cocktail party egged him
on at the previous night’s cocktail party. People
believe that imprters are raking in huge profits.
There are scores of people who have a cousin’s
neighbour having a small vineyard in Burgundy or a friend
owning a winery in Australia or on their pleasure trip
to Italy the agriturismo owner having vineyards around
it has convinced them they can become one of the top
importers with his or her support. Enough of them have
a hotel general manager as their drinking buddy and
feel he will help them replace the existing list with
the wines they import.
With no ability to differentiate between Cabernet Sauvignon
or Sauvignon, a Chilean Merlot or a French Pétrus,
they land up with containerfuls of wines (I met a budding
importer a couple of years ago who told me he had plans
to import 80 containers of wine every year! In the fist
year!! Needless to say he is ‘dead’). Of
course, with their sharp vision they feel they save
transport charges per bottle and import too much wine
without knowing the temperature at which the wines should
be stored.
Therein lies the rub
The customs department allows 90 days of duty free
bonding. Beyond that 15% interest is chargeable till
the date of release of consignment. Normally products
are allowed to be stored for a year on the above terms.
The Commissioner has the discretion to allow another
6 months of storage with interest. Another 6 months
are usually allowed by the Chief Commissioner of Customs.
Theoretically he can give further extensions. Recently
the Board has started taking a dim view of the products
lying unproductive for over 2 years and has asked them
to be careful in extending further indulgence.
The importer, of course, is allowed to re-export during
this period. He could be sending it back to the importer,
or selling it at much discounted prices. He could even
dump it in the international waters. But it must be
out of the country and customs’ charge.
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