How to Legally Sell Wine Us: Auction House Guidelines

Working out how to legally sell wine US-wide, particularly through auction, means navigating specific regulations. It also means understanding the operational framework of auction houses. When you decide to sell your wine, an auction house like Christie's acts as an agent for the seller, facilitating the transaction between you and the buyer. This process includes establishing estimates based on factors such as condition and provenance. It also includes setting a confidential reserve price below which your lot will not sell, as outlined in Christie's New York Conditions of Sale, Wine. You will need to consider shipping logistics, potential state-specific quantity limits, and relevant sales tax. That matters most if the wine is collected or shipped within New York or to other states where the auction house holds licenses.

How do auction houses operate when you sell wine in the US?

Auction houses like Christie's operate as agents for sellers, connecting your fine wine with prospective buyers. When you consign wine, Christie's specialists form an opinion on the expected price at auction, known as an estimate. Christie's bases these estimates on prices recently paid for comparable property. It takes into account condition, rarity, quality, and provenance, according to Christie's New York Conditions of Sale, Wine. Christie's prepares estimates in advance and may revise them. Buyers should not rely on them as a prediction of actual selling prices. Most lots are offered subject to a reserve. That reserve is the confidential minimum price you, as the consignor, will accept, and the lot will not sell below it. Christie's states that the reserve will not exceed the low pre-sale estimate. The auctioneer has the discretion to open bidding below the reserve and may bid on behalf of the consignor up to the reserve amount. Those bids can be consecutive, or they can come in response to other bids.

For the buyer, Christie's charges a buyer's premium of 25% of the final bid price of each lot of wine sold, as detailed in their New York Conditions of Sale, Wine. The buyer pays this premium, along with any applicable taxes, in addition to the hammer price. Understanding these operational aspects helps you comprehend the transaction environment when you decide to sell your wine. You can track market performance and realized prices by exploring our US results.

What are the shipping and collection rules for wine sold at auction?

When you sell wine through an auction house, the buyer is responsible for collection and shipping. The regulations still shape the overall transaction. Christie's expects buyers to remove their property within seven calendar days of the auction. The alternative is thirty calendar days, according to the "Shipping and Collection of Wine" section of their Important Notices. If lots are not collected within 120 calendar days of the auction's conclusion, Christie's will store them at the buyer's expense and risk. Storage runs through a third party, The Wine Cellarage, at its New York storage location, as noted in Christie's New York Conditions of Sale, Wine.

Christie's may only ship wines to states where it holds appropriate licenses and/or permits. Currently, Christie's ships to New York, Florida, New Hampshire, and Wyoming. For shipments to other states, and in accordance with New York law, Christie's releases property to a third-party shipper. It then collects New York sales tax at a rate of 8.875%, regardless of the destination, unless a tax exemption is on file.

Specific limitations apply to certain states:

Destination State	Quantity Limit	Fee (on hammer price + buyer's premium, ex. sales tax)	Notes
New Hampshire	12 (12) 9-liter cases or equivalent per consumer per calendar year	8%	No shipping to dry town Ellsworth, New Hampshire
Wyoming	108 liters per household within any 12-month period	12%

For international shipping, Christie's offers shipping to Hong Kong and London. For other countries, Christie's releases property to a third-party shipper and collects New York sales tax at a rate of 8.875%. That tax applies unless specific conditions are met. One condition is hiring a freight forwarder registered with United States Customs and Border Protection who can provide certain certifications (Christie's New York Conditions of Sale, Wine). The buyer alone must determine whether wines can be shipped into any state or jurisdiction. The buyer must also obtain any required permits or licenses prior to shipment. All alcoholic beverages can only be collected or delivered to individuals 21 years of age or older, in accordance with New York State law.

What are the tax considerations for wine sales?

When selling wine, understanding the applicable taxes is crucial. In the US, sales tax is a primary consideration for auction transactions. Christie's collects New York sales tax at a rate of 8.875% for any lot collected from Christie's in New York, as stated in their New York Conditions of Sale, Wine. This rate also applies to property released to a third-party shipper for destinations outside of New York, Florida, New Hampshire, and Wyoming. The exceptions are a tax exemption on file, or specific international shipping conditions. The successful bidder is responsible for any applicable taxes, including sales or use tax, on the hammer price, the buyer's premium, and any other related charges.

While the focus here is on US sales, it is important to note that other jurisdictions have their own tax regulations. For example, in the United Kingdom, you may not pay Capital Gains Tax on "anything with a limited lifespan, like clocks - unless used for business," according to GOV.UK. HMRC's Capital Gains Manual further clarifies the position. Disposals of chattels (tangible moveable property) which are wasting assets are exempt for Capital Gains Tax purposes, unless Capital Allowances were or could have been claimed, or TCGA92/S45(3B) applies. Some assets "may naturally have a predictable life not exceeding 50 years," as stated by HMRC. This UK tax information sits here for context. It does not apply to US-based wine sales. For more on the financial aspects of collecting, see our guide to fine wine investment.

What condition factors are important for older wines at auction?

The condition of your wine, especially older vintages, significantly influences its marketability and value. Auction houses like Christie's emphasize that "buyers of old wines must make appropriate allowances for natural variations of ullages, conditions of cases, labels, corks and wine," according to their New York Conditions of Sale, Wine.

Specifically, Christie's notes that "Corks over twenty (20) years old begin to lose their elasticity and levels can change between cataloguing and sale." They also state that "Old corks have also been known to fail during or after shipment," and therefore, "there is always a risk of cork failure with old wines and due allowance must be made for this." This means that while auction houses make every effort to describe wines correctly, they expect buyers to account for these natural variations. For a detailed explanation of fill levels, consult our guide on wine ullage levels explained.

Christie's and the seller sell all property "as is" without any representation or warranty of any kind. Buyers are responsible for satisfying themselves concerning the condition of the property. Condition reports are usually available upon request. Statements in the catalogue or condition report are considered opinions and not statements of fact.

Regarding returns, Christie's states that "Under no circumstances can a return be accepted or an adjustment of price or credit be made after delivery except under the terms stated above. The Sale Particulars may contain Special Conditions of." Paragraph 5 outlines specific conditions for claims, such as breakage or authenticity, which must be made in writing within 30 days or 21 days respectively. The wine must also be in Christie's possession in the same condition as at the date of sale. Proper wine storage is crucial to maintaining condition over time.

Before you sell, ensure you understand the market value of your collection. Start with our fine wine market index.