The costs and risks of transporting and exhibiting fine art and antiquities in the United States are rising for dealers as a result of changes to U.S. trade policy.
At the same time, European Union legislation is threatening to add new layers of complexity to the process of importing antiquities.
While antiques and fine art might seem unlikely casualties of the simmering trade war, the additional costs and higher risk for asset owners are forcing dealers to consider pulling their participation in U.S. and European trade fairs.
Changes to U.S. legislation covering import fees applicable to antiquities have created a direct impact on the cost of exhibiting at art fairs such as the upcoming Winter Antiques Show in January and TEFAF (The European Fine Art Fair), New York in May.
With import fees for fine art and antique items now being levied at much higher rates due to the introduction of tariffs, the upfront costs for dealers have risen dramatically.
Changes in administration policy and funding for the arts, together with the impact from the recent shutdown of the federal government, has seen the removal of access for application of the government indemnity traditionally provided to museums, public libraries and private institutions offering public displays of art.
Without the indemnity, some museum doors have already closed as management weighs the risks and finds the costs difficult to absorb. Because large shows often rely on key loans from private collectors and other museums, potential hosts find themselves looking to commercial markets for cover to maintain exhibition schedules or hastily re-organizing plans made years in advance.
Better funded bodies are considering changes to years of long-standing policy, especially when it comes to loaning high-profile artworks. Such loans to foreign museums that previously would rarely, if ever leave the country point to the need to raise emergency revenue that these institutions are prepared to countenance much higher risk, for which we recommend buying commercial cover.
Meanwhile, dealers and exhibitors planning to take part in sales and fairs within the European Union must contend with new regulations impacting the cross-border import process.
Extra-European exhibitors at next year’s TEFAF Maastricht, BRAFA art fair and the Biennale dell’Antiquariato in Florence will need to comply with EU Regulation 2019/880, which aims to combat illicit trafficking and terrorism and applies stricter import controls to antiquities and artworks over 200 years old and worth more than €18,000 ($19,500).
The regulation has already raised concerns among U.K. based dealers who will have to provide evidence of lawful import for objects acquired before June 2025. Importers will be required to identify an object’s country of origin, provide proof that it was lawfully exported from its country of origin and its previous owners before a license is granted.
The impact across the art market will be widespread. Once a non-EU dealer decides to participate in an art fair, there will be a process of evaluating the inventory to understand whether it will be subjected to the import licenses or declarations that are expected for pieces that were not made in the EU.
For EU-based dealers, the ability to buy stock outside the EU or obtain non-EU consignments will become more difficult as they will also be subjected to the same directives.
In common with much of the regulation created by the European Union, observers suggest that the market will ultimately adjust to the additional costs and bureaucracy and the regulation’s intention to increase transparency is laudable.
The transition period, however, is likely to see disruption and inevitably higher costs for traders upon whom the burden to demonstrate compliance will fall.
Our Fine Art team can help with any queries relating to the U.S. Government's indemnity challenges by offering commercial insurance solutions.
We'll be continuing this conversation in the coming weeks as the situation develops. Look out for the podcast and webinar on this topic, with details to be shared soon.
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