Customs Warehousing: Explained
A complete service for businesses considering or operating a Customs Warehouse
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EXPLAINED
What is a
Customs Warehouse?
A Customs Warehouse (CW), often referred to as a “bonded warehouse”, is a customs special procedure eligible businesses can apply to their local customs authorities for permission to use within their own, or a third party storage facilities.
It’s primary use is to delay the payment of import duties and taxes on imported goods. This can aid businesses in a number of ways, such as, improving cash-flow or eliminating duty on re-exported goods.
There are numerous advantages to operating a Customs Warehouse. Some of the most common reasons are:
Imported goods stored under a CW regime which are subsequently re-exported will not be subject to UK import duties.
This creates a direct saving on any re-exported goods subject to UK import duties under standard storage procedures.
Import duty is suspended on imported goods until they are released from the CW.
As a result, import duty is payable in smaller increments closer to the point of sale. This can dramatically improve cash-flow on high value dutiable goods.
CW can provide a comparable option to operating multiple DCs, due to the suspension of import duty and taxes.
Businesses can distribute from a single location to multiple territories, without incurring an unnecessary duty and tax penalty.
Businesses from all sectors can benefit from the use of a Customs Warehouse.
It is most effective when used with high-value goods and goods subject to high import or excise duty tariffs.
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"We truly appreciate the support BKR provided us on a preferential origin project. Their support allowed for a significant step forward in unlocking further duty savings for Brooks Sports."
Tineke Guerrero Meeuws
Director of Trade Compliance
There are several key considerations for any business thinking of implementing a Customs Warehouse. Some of the key topics our advisors discuss during the scoping phase of the project are:
Three services that cater for all businesses, whether you are still researching the benefits of a Customs Warehouse or need support with the management of an existing one.
Unsure if Customs Warehousing is right for your business?
For businesses wishing to explore the use of CW without committing, a F&E assessment is a low-budget way of identifying what the advantages and key considerations are. It allows a proof of concept and a model of potential savings to be produced to aid decision makings.
What this includes:
Full end-to-end project management from an expert customs advisor.
Full end-to-end project management, taking your application from concept to approval. Support covers the design and drafting of standard operating procedures, software recommendations, site visits, application drafts and fully supported engagement with HMRC.
What this includes:
The benefits of a Customs Warehouse without the stress of managing it
If you require continued support implementing your regime, such as staff training, compliance management, record auditing, record-keeping, brokerage or ad-hoc advisory, BKR provides bespoke aftercare packages to allow full or part-time outsourcing to an expert customs project manager.
What this includes:
All our projects are bespoke and consist of a tailormade scope based on a client's specific requirements. As such, the blueprints below are indicative and have been provided for comparison only.
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Still not sure or looking for support with something not listed? Schedule a FREE consultation with one of our advisors to discuss your business's specific requirements.
"With BKR’s support, we are able to utilise customs special procedures within our UK manufacturing projects. Their input has allowed us to grow our UK production and maximise profitability whilst doing so."
Sarathe Natarajan
Import Manager
Empowering our clients to focus on what makes them succesful.
BKR Consultants Ltd provides professional and practical guidance on all matters associated with customs clearance, customs compliance and supply chain efficiency.
Our primary goal is to work with our clients to achieve an optimal budget for import duty, all the while mitigating compliance risks for the business.
We achieve this by delivering strategic customs guidance and leveraging expert customs resources, to fulfil a capability many businesses find challenging to develop internally.
Our team possesses expertise across diverse areas, including health and regulatory affairs from APHA, extensive experience in large business unit management within HMRC, customs brokerage, and leadership roles within large multinational businesses and member associations.
Let us know a little bit about how we can help and one of our customs experts will be in touch to arrange a consultation at the next mutually convenient date.
Contact us using the details below, or simply fill out the contact form:
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