US Branch Storing Equipment in the UK
A $1M saving in Import & Export Charges
A US branch company, 'E' was the storage facility for a company that worked in the pipeline industry. Much equipment was stored in Lancashire between non-EU projects yet at import VAT & duty were due even if the equipment had previously been imported into and exported from the EU.
By setting up a bonded warehouse, all charges were removed since the company always re-exported to non-EU countries. Savings estimated at $1M over the first 3 years were achieved