Insuring the Transport of Alcoholic Beverages: Impact of the Destruction and Disappearance of Goods
We share with you this opinion piece signed by our Director of Offer and Distribution, Javier López, published in the March issue of Logística Profesional magazine:
According to the latest Agri-Food Trade Balance, prepared by the Sub-Directorate General for International Trade in Goods, under the Ministry of Economy, Trade and Business, alcoholic beverages constitute a sector with enormous export vitality that contributes to the surplus balance of the aforementioned trade. The transport of goods poses a constant challenge in risk management, and in the case of alcoholic beverages, this is accentuated by their high tax burden. From an insurance perspective, it is essential to differentiate between claims scenarios where the destruction of the goods is verified and those that imply their disappearance.
When goods of this nature suffer a claim, their value is not limited to their commercial price but also incorporates a high fiscal burden. In the European Union, the special tax on alcohol taxes the harm that its consumption represents to public health and the consequent impact on healthcare systems. These taxes are materialized in the tax stamps or seals carried by the bottles, certifying their payment. However, the fiscal treatment in the event of a claim varies depending on the nature of the loss.
In situations where the goods are destroyed, such as in the case of a fire involving the transporting vehicle, fiscal authorities allow the recovery of these taxes, as they consider that the product will no longer be consumed nor will it generate the sanitary impact that justifies its taxation. European regulations, as established in Directive 2008/118/EC concerning the general arrangements for excise duty and its implementing regulation (Implementing Regulation EU 2021/2266), state that the destruction must be certified by the competent tax administration, which entails a rigorous verification procedure. In these cases, compensation for the claim can be alleviated by the tax refund, reducing the economic impact of the claim for the cargo owner.
The same does not occur when the goods disappear, such as in the event of theft. Legislation, by virtue of Regulation (EU) 389/2012 on administrative cooperation in the field of excise duties, assumes that the product will eventually be consumed, albeit outside legal channels, and therefore, does not allow the refund of special taxes. This considerably increases the economic detriment to the insured, as the compensation must cover not only the commercial value of the product but also the unrecoverable fiscal charge. In countries like Spain, the Tax Agency maintains this strict stance, aligning with community regulations.
This distinction has direct implications for the design of transport insurance policies for alcoholic beverages. At Assek Europe, our specialized team and the backing of 35 years of experience from Assekuransa allow us to address this issue with specialized coverages that minimize the impact of both scenarios. At this point, it is essential to differentiate between the Policyholder and Insured who is a carrier or logistics operator and one who is the shipper or owner of the goods. Carriers are protected by the limitation of their liability, and only a Special Declaration of Value made by the carrier or the accreditation of the causes that break that limit of liability can make them liable for values higher than that limitation. In the case of goods owners, it may be advisable to add clauses or mentions regarding seals, taxes, and duties to their policies, as these factors determine the value of the goods in a very decisive way.
The evolution of regulations and collaboration with fiscal authorities could lead in the future to a greater balance in the treatment of these losses. In the past, in cases where a carrier suffered a theft during their rest time, having parked their vehicle in a place with a certain amount of traffic or specific lighting conditions, they were usually exempted from liability, as the theft was considered a fortuitous event or force majeure. Currently, cases are proliferating where it is considered that the carrier has not only failed to act with due diligence but has acted with a lack of the minimum required caution and professionalism by not parking the vehicle in a parametrically delimited place with access control.
In a sector where specialization and speed in claims management make the difference, it is essential to have insurance solutions designed to face these challenges with maximum effectiveness and solvency.
