HDH Auction Move

A search of the site showed no comments on HDH moving their auctions to Delaware and ceasing to have anything to do with shipping in the US. The formerly live events are now called ‘viewings’, which sounds like something to do with a mortuary but apparently means that you go to the venue at Spiaggia and watch a screen where company members conduct the auction from Delaware. I assume this has to do with new or newly enforced laws. They provide a list of potential shippers, but it has been difficult to get answers to specific questions, I assume because of their wanting no connection whatever to bottles once they are sold. My question is pretty simple. Can I legally have UPS deliver wines bought at auction in Delaware to my storage facility in Chicago?

Thanks to any Illinois lawyers on the Board.

Likely I just missed an email, but looking at the Feb 28-29 auction, where do you see anything about Delaware?

Glad someone brought this up. They’ve sent a couple of emails about this.

Makes it easy for me to pass on the auction.

Is the wine being shipped from Delaware? If the wine is sold in Delaware, it could be to avoid sales taxes.

Guess I should have read closer. Not shipped at all. To be honest, this is great news for me - local pickup with no taxes.

• HDH does not ship any wine, spirit, or alcoholic beverage product. Buyers are responsible for collecting their winnings from HDH’s cellar in Delaware or for arranging for their shipment.

I spoke with someone at HDH because I was very puzzled about the first email I received. Without going into specifics, they said there are a number of reasons that the sale location has been moved to Delaware. I have my guesses, but I won’t attribute them publicly as my guesses may be wrong. The upshot is that buyers have the burden to arrange for the pickup and delivery of the wines at the Delaware warehouse.

That seems…inconvenient at best. What’s in this for either the buyer or the seller (other than the sales tax thing, which only really helps you if you’re in Delaware)?

Granted I am new to these auctions but this makes no sense to me. It is a staggering trend, (increasing in frequency) when a business make it MORE difficult for me to give them my money. Sounds like a great way to kill your business.

I thought HDH was in Chicago. I’ve never had a problem getting them to deliver (2 weeks ago).

Considering how often I’ve seen people note sales tax on auction hammer prices, this doesn’t seem too surprising.

IMO the three tier system is in a period of excruciatingly slow collapse, it will finally take half a century or more. As it is, the incumbents throw everything they can at anybody who tries to bypass the system. I would guess that the state of Illinois and/or many other states simply told HDH that if they shipped wine, they would be breaking the law and would be treated as criminals. I would guess that sales tax is not a major part of this. It’s state authorities at the behest of distributors and/or retailers blocking shipping, as if the people who buy wines at auction from HDH will simply shrug their shoulders when it becomes inconvenient, go to the local supermarket and buy a bottle of Middle Sister Pinot Grigio instead of a bottle of 2002 Leflaive Batard-Montrachet.

I’ve bought a few times from HDH, always satisfied with my results. I’m now unlikely to buy from them again.

Dan Kravitz

My question remains though. Is it legal for me to arrange shipping into Illinois of wine bought at auction in Delaware?

I guess you need an answer from an Attorney admitted to the Bar in the State of Illinois. If I knew, I would tell you for free.

Good luck.

Dan Kravitz

huh, interesting on the shipping. Since I’m in DC, I travel through Delaware to and from Philly/NJ/NY to visit folks so I may start looking at the HDH auctions more.

Based on my interactions with them this week it seems like you would be able to get it shipped to Illinois if you arrange the shipping yourself e.g. purchase UPS shipping in your name and send them the label. Maybe you could ask them about doing that.

That’s where I’m at too–but I can’t even find where their warehouse is in Delaware?

I called them; they said it was 100% a sales tax issue. By making people take possession of the wines in Delaware HDH save themselves from collecting sales tax

This of course makes it a pain to ship, but you can send them a shipping label that you pay for yourself and they’ll take care of sending it out that way

So they shifted the burden of paying sales tax to the consumer, and made it harder for the consumer to get their wines? Still I raise the question of what’s in this for the buyer or seller?

It remains unclear to me. I got them to retract a couple of bids I’d placed

Their rollout of this change has been hot garbage, full stop. Not sure how it will play out moving forward, but my gut is the first couple auctions will be a major hassle.