Advice On Using Bonded Warehouses. The Customs People.

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.