What is Bonded Warehousing ?

A bonded warehouse is a secure space in which goods liable to import duty and VAT are stored. There will be a deferment for customs duty and VAT payments on these items until the goods are sold or removed from the bonded warehouse.

Benefits of using a bonded warehouse

improved cash flow

Considerably improved cash flow as a result of the fact that no tax is paid until the goods are sold – this gives you more ‘cash in hand’ for other purchases.

Double duty avoided

If the goods are set to be exported, then you won’t be liable for duty in the UK; rather, it will be paid in the designated country. This will lead to further savings as it means that double duty payments will be avoided.

Potential to avoid delays

Potential to avoid delays with order fulfilment as goods can be imported and stored in a bonded warehouse ahead of peak season.

Using a customs warehouse

These can be used to store goods:

That are liable to customs duties, excise duties or import VAT
Where documents such as licences are not available when you import your goods
Originally imported to a special procedure and being warehoused before being re-exported
On which duty is not due, but import VAT is
That have been released to free circulation
Now in free circulation, which are subject to a claim under the Rejected Imports arrangements