Terms and Conditions

Please make sure you read and understand the Liv-ex Terms and Conditions before you continue using
www.liv-ex.com. If you have any questions please contact your Exchange Manager.

Liv-ex Terms and Conditions FAQ 

 

When are the terms and conditions coming into effect?

The new terms will be effective from 1st January 2015. Trades invoiced before 1st January 2015 will be done under the old terms and conditions. Any trades invoiced on or after 1st January 2015 will be subject to the new terms and conditions.

What are the main changes?

Accounts changes

  1. We are moving to weekly settlement cycles.
  2. All customers will receive a net (contra) statement netting their sales and purchases.
  3. Invoices will now be due 7 days after period end.
  4. We will pay sales 7 days after period end.
  5. Commission and settlement charges will be invoiced with the wine purchases.
  6. For Sales, commission and settlement charges will be invoiced at the end of the period.
  7. Commission and settlement charges will be invoiced with the wine purchases.
  8. All other Vine invoices will be invoiced once a month.

Membership changes

  1. There will be a single flat rate of membership for all members of GBP 1,500 (EUR 2,100) per year, which will allow an unlimited number of users to have full access to the website.
  2. The commission rate will move to a flat 2%.
  3. You will be able to purchase a lower fixed rate of commission with an upfront payment.

I mainly buy wine, how will this affect me?

All wine will be invoiced once it has arrived in our Tilbury warehouse and been checked. Therefore once you receive an invoice your wine should be available.

How do invoices work under the new terms and conditions?

For trades carried out before January 1st 2015, but invoiced after, commission and settlement fees will appear on a separate invoice, issued at the same time as the wine invoice. This a transitional measure.

Under the new terms, commission and settlement fees will appear on the same invoice as the wine. This means that a single payment can be made as soon as the wine is invoiced, covering the full cost. This will help reduce payment fees, and eliminate problems where unpaid commission invoices can lead to an account becoming blocked.

At the end of each week you will receive a net statement showing the total amount that you owe. If you have sold more than we have invoiced you, we will pay you 7 days later. If you have bought more than you have sold, you will need to make a payment to us within 7 days.

Will my buying limit change?

As part of the move to weekly settlement cycles we will be reviewing buying limits. Members will generally be able to trade twice as much with the same limit. This limit can be increased by the addition of margin, as now, with an increase of five times the amount of margin deposited.

I mainly sell wine, how will this affect me?

Weekly payment periods and faster payment times mean that on average you will be paid earlier for your wine sales. If you are selling wine that already has an SIB passport you will be paid much more quickly.

Wine will only be invoiced once it has been received and checked. Instructing transfer of the wine will not be sufficient for us to raise an invoice. It is your responsibility to ensure we receive the wine. For all sellers we are moving to the default of a “contra”, where we net your sales against the commission and other charges you owe us, reducing the number of payments you have to make. Providing you can agree the net position, you should get paid on a timely basis at the end of each period.

Can I still opt out of a net statement?

If for any reason you do not wish to have a net statement, then we will only be able to pay your sales once a month, after the final period, rather than weekly.

What will I need to do differently?

You will need to continue to pay your outstanding invoices on time, which will be earlier than they were in 2014. If you are a seller and you deliver on time, you will get paid up to two weeks earlier.

What specific actions do I have to take?

When you first log on to the website after the 1st January 2015, you will need to agree to the new Terms & Conditions before you can continue to trade. You need to make sure your accounts and logistics teams are aware of the new obligations.

How can I add additional Members?

If you would like to add additional users to your account, please contact your Exchange Manager who will be able to assist you. Existing back office users will automatically be upgraded to full subscribers at no cost.

What specific actions do I have to take?

When you first log on after the 1st October, you will need to agree to the new Terms & Conditions before you can continue to trade. You need to make sure your accounts and logistics teams are aware of the new obligations.

Vine insurance

What are UKWA and BIFA?

From the 1st October 2012, all settlement of Liv-ex trades takes place under the standard terms of UKWA and BIFA. UKWA – The United Kingdom Warehousing Association – is a UK trade association serving warehousing and logistics sector. It provides Industry standard Conditions of Contract for Warehousing Services.

BIFA – The British International Freight Association, is the trade association for UK-registered companies engaged in international movement of freight by all modes of transport, air, road, rail and sea. It provides Industry standard Conditions of Contract (Standard Trading Conditions) for Freight Forwarding services. Copies of these standard terms can be obtained from your Vine contact on request.

I have my own insurance, how do I opt out?

From the first of January 2013 Liv-ex charged all members who have not opted out of insurance. If you wish to opt out of insurance you will need to let us know in writing, confirming you understand all risk for your wines are taken by you whilst in your Vine storage account and during any transport conducted by Vine on your behalf. Vine will only offer limited liability under its trading terms of UKWA for storage and BIFA for transport. Further information is available from your Vine Manager.

Can I still deliver to Vine Bordeaux?

Delivery can still be made to our warehouse hub in Bordeaux. We will transport it to London at our cost under our insurance. However, delivery will only be invoiced once the wine has arrived and been checked in Tilbury. This should take some of the pressure away from month-end delivery. You will see a delay between the delivery of wine to Vine Bordeaux, and the invoice date. This will be mitigated by two payment cycles, and on average you should not be paid later than you would have been under the old terms.

I collect from Vine Bordeaux in Bordeaux, how does this affect me?

While we would expect most wine to be available for collection from Tilbury within 30 days, for Members collecting in Bordeaux, there may be an additional delay to allow for transport of the wine from London to Bordeaux. As Bordeaux is a transport hub, rather than a Vine Warehouse, for those collecting from Vine Bordeaux in Bordeaux, all wine will continue to be insured by Liv-ex at our cost until it is collected.

How can I find out more?

Please refer to the full Terms & Conditions