Bonded Warehouses
Please note: The Customs People is a customs and excise specialist, and whilst we can advise on setting up bonded warehouse solutions, we do not own or operate them ourselves - similarly, we do not provide customs clearance services.
The Customs People have a great deal of knowledge and expertise when it comes to all aspects of using bonded warehouses to store goods. We can offer advice and consultation to your business relating to the reassessment of open-ended customs authorisations and all aspects of customs warehousing.
Contact The Customs People today by calling 0161 826 8926 or fill out an online enquiry form and we will be in touch.
What is a bonded warehouse (UK)?
A bonded warehouse, meaning a customs warehouse, is a space in which goods liable to import duty and import VAT are stored. Customs duty and VAT payments on these items are deferred until the goods are sold or removed from the bonded warehouse when they are subject to customs control.
Storing items this way has a number of benefits for sellers who import or sell goods that are liable to these charges but want to postpone paying customs duty until an optimal time. For this reason, suppliers of wine, food, tobacco and spirits are common users of bonded warehousing.
Those businesses supplying goods in, or removing them from a tax warehouse in another EU member state, should be aware that the rules and procedures may be different to those that apply in the UK.
It is, therefore, advisable to consult the authorities in that member state if there are any doubts about the legislation of the respective customs duties of that location. We can support you with guidance on using bonded warehouses to maximise the efficiency of your business operations and increase profitability.
Why are bonded warehouses used?
There are a number of reasons why a bonded warehouse may be a desirable option for importers and exporters of certain products. These include:
- Deferred payments on such products mean that no tax is paid until the goods are sold, which can considerably improve cash flow for businesses. In many cases, this can be between 25% and 33% of the upfront cost of imported goods.
- If the goods are set to be exported, no duty will be payable in the UK, but paid in the country of destination. This means double duty payments will be avoided, leading to further savings.
- Goods can be imported and stored in customs warehouses in advance of peak season, meaning they are available for order fulfilment without delays.
- Very often, bonded warehouses have specialised facilities, such as deep freezes of large vats to store wine or spirits.
- Inward and outward customs documentation is often provided by the bonded warehouse facility.
FAQs
What is the difference between a bonded warehouse and a normal warehouse?
A bonded warehouse differs from a normal warehouse in its ability to store imported goods under customs control without immediate payment of import duties or taxes. This type of warehouse is licensed by customs authorities and offers businesses the flexibility to defer payment until the goods are either released for domestic use or re-exported. This can benefit cash flow and inventory management. In contrast, a normal warehouse does not have such customs privileges, meaning that import duties and taxes must be paid when goods arrive, regardless of when they are sold or used.
For businesses involved in global trade, understanding the customs process and associated bonded warehouse charges can provide strategic advantages in managing costs and compliance. The Customs People can assist you in optimising your business, with expert guidance on using customs bonded warehouse solutions to maximise your cash flow.
How long can goods stay in a bonded warehouse?
Goods can typically remain in a private customs warehouse for an extended period, often up to five years, depending on local regulations and the type of goods stored. This extended storage period allows businesses to manage their supply chain more effectively by deferring the payment of import duties and taxes until the goods are released for domestic use or exported.
The flexibility of bonded warehousing supports better inventory planning and cash flow management, enabling companies to store goods securely while they assess market conditions or align with distribution timelines. For specific durations and conditions, businesses should consult with customs experts such as The Customs People to comply with relevant regulations.
Contact us
Contact The Customs People today to learn how our bonded warehousing services can support your business. Our team of customs experts is ready to guide you through the benefits of using bonded warehouses to optimise cash flow, streamline your customs process, and comply with customs regulations.
Whether you need advice on storage durations, customs declarations or tailored solutions to fit your global trade needs, we are here to assist. Contact The Customs People today by calling 0161 826 8926 or fill out our online enquiry form and we will be in touch.