A Customs Warehouse, Sometimes Referred To As A Bonded Warehouse, Is A Site Used For The Storage And Processing Of Imported Goods
Whilst goods are held in a customs warehouse, they are not liable for customs duties and, as such, can result in significant savings. Goods imported into a customs warehouse and subsequently exported, will negate the imported customs duty entirely. If goods are released to the UK market, duty is only collected when the goods leave customs control from the warehouse to free circulation.
What Are The Advantages Of Using A Bonded Warehouse As A Duty Deferral Solution?
The two main advantages of using a customs warehouse are cost reduction and improvement in cash flow.
Reducing Costs
Within The Supply Chain
Customs warehousing negates the need to pay customs duty on goods imported, stored and subsequently exported from the UK. If you keep goods within your customs warehouse and do not release them to free circulation (in the UK), you do not have to pay the customs duty on the import. This can mitigate the “Double Duty” effect of trading in multiple jurisdictions. Read more on Double Duty here.
Improving Cash Flow
Customs duty is only payable once goods leave customs control. If your goods are imported in the customs warehouse and then sold in the UK, goods will need to be released to “Free Circulation”. Customs duty is only payable at the point goods are released, meaning there is a significant cashflow advantage from delaying this duty payment. This is especially beneficial if a business hold goods for a long time.
What Our Clients Say About Us
Komatsu UK Ltd
"Barbourne Brook has provided customs advice on many occasions, always demonstrating deep knowledge of the subject coupled with innovative ideas to help the business mitigate its duty liabilities."
Stuart Reid, Finance Director
Ensinger Group Ltd
"Barbourne Brook delivered customs advice which we found insightful and very educational. I would not hesitate to recommend Barbourne Brook to other companies."
James Cole, Finance Director
VBR Turbine Partners B.V.
"Barbourne Brook support our UK and EU business in a very professional and diligent manner, and was available a a moment's notice to give advice and run with whatever was thrown at them, many times under extreme pressure and deadlines."
John Fletcher, General Manager
What Does A
Customs Warehousing Application Look Like?
Implementing a Customs Warehouse is a complex and time consuming undertaking. The savings need to be significant enough to outweigh both the cost of the implementation and the added administrative burden.
Is Customs Warehousing Right For My Business?
Every business has a unique supply chain and, as such, there is no way to know if a customs warehouse is right for you without first understanding the benefits. A customs warehouse authorisation is granted by HMRC and will increase your ongoing customs obligations. The savings need to be significant enough to outweigh both the cost of the implementation and the added administrative burden.
The advantages of this approach are:
Give an accurate return on investment, allowing you to make a better informed commercial decision.
This point is key as savings can sometimes differ vastly from expectations once we get into the detail.
Assessing a customs warehouse against other customs planning techniques.
We often find that other options will get the same results without the added compliance obligations. By taking a step back, and taking a more holistic view, we can recommend the best solution that meets your specific needs.
Providing a viability assessment and gap analysis for a customs warehouse.
This will ensure that the project is viable and what work needs to be done in order to achieve it.
As HMRC sign-off the authorisation, it is prudent to ensure your compliance obligations are being met before you are audited.
Reviewing this at the front end allows time to resolve issues before approaching HMRC and, therefore, ensure you are in a good place when making the application.
Why Choose
Barbourne Brook?
At Barbourne Brook, we have a plethora of experience implementing customs warehousing, and have aided numerous clients in attaining customs warehousing through our application services.
We ensure that by working with us, you avoid any common mistakes during the process helping to speed up the general verification process while also avoiding any surprise charges, while also mitigating any disruption to you or your business during the implementation process.
Our wealth of experience and deep knowledge of customs regulations and best practices ensure you end up with the best solution for your business that maximises savings and minimises the risk of incurring surprise fees or charges.