Smuggle Undermines High-end Wine Market
With the development of domestic wine market, drinking wines is becoming more and more popular and wine sale is increasing by leaps and bounds. Unfortunately, smuggling soon comes into prominence and the nearby tax-free regions such as Macau and Hong Kong become smugglers’ paradise.
The Rise of Wine Prices
In recent years, the booming domestic wine market saw the introduction of more and more luxurious chateaux into China. The dominant wine sale has been upgraded under the influence of this fad.
On last year’s exhibition, the displayed wines are approximately 100 Yuan a bottle. The price of a bottle of Lafite brewed in 1982 can soar as high as 50,000 Yuan. The organizer of the exhibition declared that consumers now are more critical, and, besides kinds and prices, are considering more factors such as places of production, years of aging during the purchasing process. The higher the price, the faddier it becomes.
According to survey by some sales representative, the wines ranged from 200 to 800 Yuan become the mainstream sales. High-end wines are ready to take the place of liquors in some luxurious hotels and restaurants.
Experts point out that the low price wines will quickly fade out and high-end product will quickly come to central stage.
Tariff Gap Results in Smuggle
In February of this year, Hong Kong abolished tax imposed on wine product and in just five months, Macau followed suit.
On the contrary, the mainland levies a tax as high as 40% on imported wine. This thus formed a striking contrast with the tariff free policy in Hong Kong and Macau. The high margin of profit gives rise to smuggling.
There are basically three forms of smuggling. The first is by sightseer touring Hong Kong or Macau. The second is by motorists whose vehicles are registered in Hong Kong or Guangdong and having the convenience of commuting between the regions. The third is bribing customs officials during customs declaration.
Domestic wine dealers reveal that mainland high-end wine sale has already felt its great impact. But tariff is beyond the manipulation of the ordinary, and how to cut down cost and remains competive is the key to their ultimate triumph.