You’ve imported your goods to the UK and found somewhere to store them; but is your chosen warehousing partner providing you the best possible solution?
If your business model involves importing goods from non EU countries, utilising a customs bonded warehouse can increase your cash flow and even potentially save you money!
Choosing a customs bonded warehouse enables you to defer payment of duty and VAT on your items until they have been distributed for sale. Not only is this great news for items that are imported in a state where they are immediately ready for resale and distribution, but it also allows for duty to be deferred on imported items that need sorting or re-packing , or need manipulating in any way prior to sale.
And, if you find for whatever reason you have difficulty in meeting particular conditions (such as certain import licensing requirements), items can be stored in a bonded warehouse until these conditions are met or the items are re-exported.
On the subject of re-exporting, it is important to note that if you choose to re-export your items that have been stored in a customs bonded warehouse to non EU countries then there will be no charge of duty or VAT to be paid on the items at all!
There is usually no time limit on how long products can be stored in a customs bonded warehouse, with the exception of CAP goods (Common Agricultural Policy goods) such as meat, sugar, oils and fats and cork. This can be hugely beneficial as it alleviates any pressure for you to make a sale on the items. It also enables you to take advantage of favourable exchange rates when purchasing goods for resale, which can help lead to an overall higher profit margin for your business.
Utilising a customs bonded warehouse also provides assurance that you are working with a reputable warehouse provider as approval has to come from HMRC, for which there are rigorous assessment processes and continuous audits.
So considering the benefits of increased cash flow, profitability and reliability that can be made from utilising a customs bonded warehouse, the question to be asking yourself is not whether you should utilise a bonded warehouse but more one of what type of customs bonded warehouse best suits my needs?
Related Blogs:
Third party fulfilment solutions adding value to warehousing
Benefits of utilising a Customs bonded warehouse
The new Union Customs Code and Authorised Economic Operator status