As the summer holidays are in full swing, it’s time for us to do our “summer homework.” Among the administrative declarations we regularly need to make, we report our stock to customs every month so they can monitor the excise duties on every bottle of wine sold.
Excise duty is an indirect tax (meaning it is collected by an intermediary, us, and not directly by the state – just like VAT, for example) that applies to the consumption of certain products, including alcohol and wine. The payment for each bottle is represented by the presence of a Representative Duty Capsule (or CRD). This allows the bottle to circulate freely within France only, and this is what customs will check if you are stopped with wine in your car, for each bottle you are transporting.
The CRD capsule is the medallion with the Marianne icon located at the top of the bottle. Several details about the bottler are listed on it, allowing you to learn more about the wines you’re purchasing. Since we bottle the wine ourselves at the château, our capsules can feature:
- The color, green, as these are wines from Appellations d’Origine Contrôlée (AOC).
Since 2011, we could also choose a wine-red color. - The term “Récoltant,” showing that we have carried out all the steps from harvesting, wine production, and bottling.
In contrast, the letter “N” (for Négociant or Non-grower) or “E” (for Authorized Warehouseman) would be listed if the wine was purchased in bulk by an intermediary who then bottles and sells it. - The number 33, corresponding to the department of our headquarters, Gironde.
- Finally, the number 170, corresponding to our administrative bottling approval number.
Returning to our declaration, its nickname is DMS (Monthly Stock Declaration), and it includes 3 things:
- Our wine stocks (the wine in vats or barrels still in production and the bottled wine we are awaiting shipment for once an order is received),
- The entries/exits (harvest after picking, sales, breakages, etc.),
- And finally, the stock of CRD capsules.
To carry out this important monthly declaration work, we computerized it a few years ago: we track the evolution of stocks in a complex Excel file recording all movements, with “ready-to-print” tabs corresponding to the forms we need to send to customs.
From September 2019 onwards, declarations will be made exclusively online, via a dedicated web portal. While the analysis is easier for Customs, it’s an additional task for us, as we previously sent a printed document. Fortunately, we were able to interface the portal with our Excel file to meet the needs of the administration without adding extra burden to our monthly work.
This is an example of digitalization, which has become an important issue for our family business, as we must optimize our available time and use it where it matters most to us (making quality wine, paying special attention to our customers, etc.).
This is, by the way, the first part of a saga that must continue #tobecontinued…
If you don’t have any on hand, feel free to place an order for bottles so you can observe these CRDs 😉.
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