Everything You Need to Know About Bonded Warehouse Uk Services

A bonded warehouse in the UK is a secure facility where goods can be stored without paying customs duty or VAT.

You can use a bonded warehouse to store goods that are imported or exported, allowing you to delay paying customs duty and VAT until the goods are sold or re-exported.

Bonded warehouses in the UK are regulated by HM Revenue & Customs (HMRC) and must meet strict security and storage standards.

In a bonded warehouse, goods are stored in a secure, climate-controlled environment to prevent damage or loss.

See what others are reading: Warehouse and Transportation Management System

To be eligible as a warehousekeeper, you'll need to be established in the UK and have an EORI number. This is a crucial step in the process.

You'll also need to demonstrate financial solvency and a good compliance record with customs. This shows that you're responsible and reliable.

To prove your business need for the warehouse, you'll need to provide details of where your records are or will be held, and the type of accounting system you use. This helps the authorities understand your business operations.

You may need to provide a guarantee for Customs Duty and VAT, unless you're an Authorised Economic Operator or can meet Authorised Economic Operator conditions. This is an important consideration when applying.

To ensure a smooth application process, make sure to provide all the necessary information, including your EORI number, commodity codes, and descriptions of the goods you intend to store. You can find a list of required information below:

Remember, providing all the necessary information will help ensure your application is processed quickly and efficiently.

Using a bonded warehouse can be a game-changer for importers and exporters. It allows you to store your goods in a secure facility without paying duty or VAT upfront.

You can store goods in a bonded warehouse that are liable to Customs Duty, excise duties or import VAT. This means you can avoid paying these taxes until the goods are sold, which can significantly improve cash flow for your business.

Goods that have been released to free circulation or are now in free circulation can also be stored in a bonded warehouse. This includes goods that are the subject of a claim under the Rejected Imports arrangements.

Here are some key benefits of using a bonded warehouse:

Placing goods in a customs warehouse requires some planning and organization. You must declare your goods correctly, either by yourself or through an agent, and provide clear written instructions to the agent if you're using one.

To ensure a smooth process, make sure your goods are sent directly to the warehouse named on your declaration within 5 working days of being cleared by customs.

You'll need to provide the warehousekeeper with all the details of the import declaration, so it's essential to double-check that you have all the necessary information.

Before choosing a warehouse, ensure it's approved for the type of goods you want to deposit. This includes checking if the warehouse can accept goods that require special storage, such as chemicals or perishable items like food or medicine.

Here are the key steps to consider when placing goods in a customs warehouse:

You can declare goods into or remove them from a customs warehouse by making a full import or export declaration, or by using a simplified declaration.

Declaring goods into another customs procedure requires a single declaration to discharge the goods from the customs warehouse.

To release goods to free circulation, you'll have to pay any duty due and receive an electronic entry number through an acceptance message.

You must not remove the goods until you've received a second message confirming the goods have cleared.

Here are the different types of customs procedures you can move your goods to:

Placing goods in a customs warehouse requires declaring them correctly, sending them directly to the warehouse within 5 working days, and providing the warehousekeeper with all the details of the import declaration.

Moving to a new location can be a challenge, especially when it comes to your warehouse operations. You'll need to consider how to move your goods to the new location.

If you're moving goods to another customs warehouse, only the receiving depositor will need to complete a declaration. This is a crucial step to ensure a smooth transition.

You won't need to complete a declaration if you're moving goods between warehouses covered by the same authorisation. This can save you time and hassle.

Your authorisation letter will outline the methods you can use to move goods, so be sure to check that before making any arrangements.

You'll need to pay Customs Duty and import VAT when you remove your goods from a customs warehouse to free circulation. To calculate the duty, you'll need the quantity, value, and tariff classification of the goods.

The value of the goods is based on the sale price for export to the UK or EU, if there has been one. If not, you can make a sale in customs warehousing, using the duty and exchange rates at the time of removal.

You may be eligible for a reduced or zero duty rate under a tariff preference, tariff quota, or import duty relief. Import VAT is due when the goods are removed from the warehouse and put in free circulation, but may not be due if the goods qualify for import VAT relief.

To work out how much duty and VAT you need to pay, you'll need to know the following:

Moving goods out of customs warehousing requires some planning, but it's doable. You can move goods to duty-free stores, ships, or aircraft.

If you need to move goods to duty-free stores for passengers on a ship or aircraft leaving the UK, or to ships and aircraft stores for their crews, you'll need to use commercial documents. These documents need to include the data elements specified in your authorisation letter.

To make this process smoother, you should familiarize yourself with the required data elements in your authorisation letter. This will help you complete the commercial documents accurately and on time.

Here are the possible destinations for your goods:

Paying Duty and VAT is a crucial step when releasing goods from a customs warehouse. You'll need to pay any Customs Duty due and import VAT when you remove your goods from a customs warehouse to free circulation.

To calculate Customs Duty, you'll need to know the quantity of goods being removed, their value, and the tariff classification, which will give you the duty rate. If there's been a sale for export to the UK or EU before your goods enter a warehouse, the value is based on that sale.

If there's no sale for export, you can make a sale in customs warehousing. Use the duty and exchange rates at the time of removal from the warehouse. You may be entitled to claim a reduced or zero duty rate under a 'tariff preference' or a 'tariff quota' if your goods qualify.

Import VAT is due when the goods are removed from the warehouse and put in free circulation. Import VAT might not be due if the goods qualify for import VAT relief.

Here's a quick rundown of the key factors to consider when paying Customs Duty and VAT:

In the UK, bonded warehouses are subject to strict regulations and guidelines to ensure compliance with customs and tax laws. To operate a bonded warehouse, you need to obtain a licence from HMRC, which involves submitting detailed plans and specifications of the warehouse.

To obtain a licence, you'll need to provide proof of ownership or lease of the warehouse, as well as information about the types of goods that will be stored. This is to ensure that the warehouse is suitable for the types of goods that will be stored and that you have the necessary facilities to handle and store them safely.

HMRC will also require you to provide information about the security measures you'll have in place to prevent smuggling or theft, such as CCTV cameras and secure storage facilities. This is to prevent the misuse of bonded warehouses for illicit activities.

Now that you've got your authorisation, you'll need to follow some rules to keep it. You'll have to pay Customs Duty and other charges on the goods in your warehouse.

You'll be expected to keep detailed records of the goods, including stock records and accounting for any shortages. This will help you stay on top of things and also give us, the supervisors, a clear picture of what's going on in your warehouse.

You'll need to allow us access to the warehouse premises, your records, and the goods at any reasonable time. This might be for inspections or to check on compliance.

If you need to make any changes, such as changing your trading name or address, or if the owner of the business changes, you'll need to let us know.

Here are some key conditions to keep in mind:

VAT doesn't have to be paid when goods are placed in a tax warehouse, but it's due when they're removed for home use. The person removing the goods is responsible for paying the VAT, either together with the suspended duty or by deferring it.

You'll only pay VAT on the last supply of goods in the warehouse, which depends on the origin of the goods and any subsequent supplies made while they're in the tax warehouse.

VAT is payable when goods are removed from a tax warehouse to home use, and the amount due is usually based on the origin of the goods.

Using a bonded warehouse in the UK can bring about significant tax savings by deferring import taxes and duties. This flexibility can contribute to enhanced commercial performance.

Businesses can store goods in a bonded UK warehouse, such as the East Midlands Gateway Campus, and re-export them to the EU without paying UK duties upon arrival. This level of flexibility can bring about significant tax savings.

Bonded warehouses are typically located close to ports and airports, allowing goods to be exported at speed to take advantage of market conditions. This can be a game-changer for businesses that need to respond quickly to changing market demands.

Extended storage periods offered by bonded facilities mean businesses can store goods until market conditions become favourable for their product. This reduces the need to lower prices and sell at a loss in order to balance inventory.

By leveraging bonded facilities, businesses can optimise their supply chains, improve inventory management, and ensure compliance with regulatory requirements.