October 23, 2020
A customs bonded warehouse is a secure location where goods and inventory can be stored, imported and exported. The difference between a non-bonded warehouse and that which is bonded relates to the connection with customs.
When goods are stored in a non-bonded warehouse, an importer must pay taxes on goods received and ensure they are fully inspected immediately. However, when using a customs bonded warehouse, goods can be held until duties and inspections are addressed. In some cases, exporters can defer payment of duty and taxes until the goods have been purchased. Bonded storage can provide significant cost savings.
In summary, storing goods in a customs bonded warehouse allows an importer to have a simplified approach to its international shipping processes. Goods are held securely and safely whilst duties and taxes are deferred until the goods leave the warehouse. Lengthier time is allowed for paperwork, payments and inspection and storage can be long term.
The Brexit transitional period ends on the 31st December, 2020. With increased uncertainty over the outcome of the EU-UK trade relationship, UK business has been forewarned to prepare for a no deal scenario and bonded storage could provide cost benefits to your business. With the potential of increased customs duty in the UK, a bonded warehouse could hold advantage for those importing and exporting into the United Kingdom.
With the deferment of Duty and VAT using a UK bonded warehouse facility, goods can be stored ‘duty free’ until they physically leave the bonded warehouse. Do you need customs warehousing to support you through Brexit?
When exporting your cargo from the UK, duty will be payable in the country of destination. If you would like to know further information on the UK bonded warehousing we have available at Crane Worldwide Logistics, please reach out.
Customs Bonded Warehousing can be of great benefit to companies selling into the Irish market and/or for companies importing from outside of the European Union, especially those authorized for Processing Under Customs Control (PCC). Crane Worldwide Logistics Ireland can now perform customs clearance receipt of stocks into our customs warehouse with the suspension of duty.
Our logistics experts in Ireland look after the reporting of stocks under our control to Irish Revenue (Customs) and can then transfer stock to our client's facility under their PCC Authorisation.
Irish exporters, therefore, save significant costs on paying duty on the materials that have been importing as well as savings in relation to exported finished products.
This can mean huge savings for Irish Exporters and/or for the company outside of the European Union selling to Irish Exporters. Located in Shannon, Cork and Dublin, we are here to help! You can reach out to our Irish team for more information here