If you import goods into the country and want to defer the payment of excise duty and VAT you may be looking for a UK bonded warehouse. Whether you are a business owner who imports from an overseas manufacturer or a high-end retailer looking to launch a new product range, the Warehouse Exchange can help you find the best bonded warehousing solution for you.
The Warehouse Exchange is a completely free platform that helps businesses find available storage in the UK. We connect you to a large network of warehouse companies from London to Sunderland, many offering specialised services including bonded storage and customs warehousing. Ideal if you have bonded warehouse requirements that need fulfilling.
What is a bonded warehouse?
A bonded warehouse is a secured storage facility where goods that are liable to import duty and VAT are stored. Bonded warehouses in the UK are covered by custom rules. Excise duty and VAT payments are deferred until the bonded goods are sold or dispatched from the warehouse rather than paying at the point they are imported. This type of storage has benefits to those sellers who import goods to sell in the UK, sellers of food, alcohol, tobacco and high value goods such as electronics commonly use bonded warehousing.
Bonded storage offers the business which is importing various advantages including the option to re-export the goods without paying the excise duty. This makes bonded warehousing ideal for any business wishing to re-export their goods outside of the UK to a country where VAT and duty may not be applicable.
Types of bonded warehouse in the UK
During the time that your bonded goods are stored the warehouse operator will provide you with a bond. There are two types of UK bonded warehouse, wet bond and dry bond. A wet bonded warehouse is able to store alcohol and tobacco whereas a dry bonded facility can store all other products. So if you are looking for a tobacco warehouse or an alcohol warehouse you will need to find a wet bonded one. Be sure to check what kind of bonded customs warehouse you need for your goods because some companies may only offer one of the two types.
To become a customs bonded warehouse and get authorised by HMRC a warehouse operator has to submit a bonded warehouse application and comply with a set of rules and regulations. This will include providing a financial guarantee, keeping the site secure and following bonded warehouse procedures.
To make use of bonded warehousing, as a business, you must adhere to the following:
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Accurately declare the goods deposited into the warehouse
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Make sure all goods go straight to the warehouse specified on the declaration
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Give the warehouse company details of the declaration and explain any differences between the goods stated on the declaration and the goods that are deposited
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Make sure the warehouse company is authorised by HMRC to store the type of goods you wish to deposit
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Make sure you declare the bonded goods when they are removed or dispatched from the warehouse
For more information on your responsibilities when using custom warehousing review the HMRC guidance.
Advantages of bonded warehouses
Using a bonded warehouse company to store your goods is optional but it does ensure that your goods will be stored legally and safely by a HMRC authorised facility. There are several other benefits to using bonded warehousing which you can look at below:
Cash-Flow - With bonded storage the payment of duty and VAT on goods is suspended until such time they have been removed or dispatched. This can improve a business’s cash flow, as no initial payment is required and no tax is due until the goods have been sold.
Don’t pay twice - If you intend to re-export the goods, then no duty is to be paid in the UK but instead paid in the destination country. This prevents a business paying duty twice and can offer a significant saving usually somewhere in the 25% - 30% range. More information on tariffs and import fees.
Supply on demand – Goods or products can be imported and stored in a bonded facility in preparation of peak periods ensuring they are available for order fulfilment on demand. Most bonded warehouses will have the facilities and equipment to store goods and preserve their quality over long periods of time. Short-term and temporary storage solutions are also available.
Specialised storage facilities – Many UK bonded warehouses have specialise facilities where they can store a whole range of things. There are deep freezers, dry containers and bulk storage facilities often available to suit your business.
Store almost anything – No matter how big or small your goods are, whether temperature controlled or perishable, there are bonded warehousing companies that can keep your goods safe, secure and in top condition.
No import duty if goods need to be destroyed – If the goods you have stored need to be destroyed for whatever reason without being sold or re-exported, then you do not have to pay the import duty on them.
Onwards transport – When goods are ready to be sold onwards transport will usually come as part of a bonded warehouse fulfilment service, but if it doesn’t you can always find a transport company on the freight exchange.
Finding a bonded warehouse doesn’t need to be difficult, in fact it can be relatively quick and easy. The Warehouse Exchange has a number of warehouse companies situated across the UK who provide bonded services. You can either search for a UK bonded warehouse on our exchange or submit a space enquiry for free and let the warehouse companies come to you.
Why choose Warehouse Exchange?
Find warehouse space - We connect you with a network of warehouse operators offering solutions that suit your specific needs.
Reduce storage costs - Save money on your storage costs by utilizing space that a warehouse is actively looking to sell.
Flexible stock management - Too much stock? No need to panic you can find temporary storage solutions as well as long term storage.
Store almost anything – Specialised storage facilities offering warehousing solutions for almost anything incl. bonded, temperature controlled, industrial and garment.
Save time finding a warehouse – By submitting a space enquiry on the Warehouse Exchange the warehouse providers get in contact with you, saving you time that you can spend on other parts of your business.
It’s FREE - It's completely free to use the Warehouse Exchange to find a warehousing solution.
The Warehouse Exchange is the UK’s first on demand marketplace for finding warehouse space and we have hundreds of warehouse companies across the UK ready to store your goods.