If you’re considering your warehousing options, you may have come across bonded warehouses. If you import and export goods outside of the UK market, this type of warehousing and distribution model could streamline your logistics operations and simplify the way you handle customs. Read on to discover how a bonded warehouse could benefit your business.
What is a bonded warehouse?
In a nutshell, a bonded warehouse (sometimes called a customs warehouse) is a type of warehousing that allows businesses to store goods before they’re processed by customs.
They offer excellent benefits for both businesses importing goods intended for the UK market and those wanting to store imported goods that are intended for eventual export. By opting for a bonded warehouse, you can store your items in the UK, with duty or import VAT payments suspended.
Benefits of using a bonded warehouse
Bonded warehouses provide a secure location to store imported goods without actually entering the UK market, making it a smart choice for many businesses. This storage system brings several valuable benefits.
No import duty for goods being exported
Both importing and exporting goods can rack up a lot of costs. So if you’re importing items from one country only to export them again to a different location at a later date, you’ll want to minimise additional expenses as much as possible. One way to do this is by storing your goods in UK-bonded warehouses between importing and exporting.
If your goods are only in the UK as a mid-point before exporting somewhere else, a bonded warehouse lets you store them here without paying import duty. You’ll still need to pay export duty but won’t have to face double taxation.
Suspended taxation
On the other hand, if your goods are destined for the UK market, you’ll only need to pay duty once a product has been purchased. While you will still need to pay this tax, it’s only payable after your goods leave the bonded warehousing facility. This enables many businesses to better manage their cash flow.
Faster transportation
Another benefit of bonded warehousing is the convenience of storing your shipped items in one physical location. Not only does this ensure you have a clearer idea of where your goods are during transit, but it also reduces the risk of delays due to complex administrative processes.
Reduced paperwork
As mentioned, bonded warehouses can speed up your transportation by cutting down on admin. Importing and exporting can typically involve a lot of paperwork, particularly when handling VAT and other taxation documents. As a result, bonded warehouses can save businesses both time and money in day-to-day operations.
Product security and quality
All goods stored in bonded facilities must be kept separate from those sold in the UK. While this is to remain compliant with customs protocols, it can also bring an added benefit to businesses — you’ll know that your items are stored securely and won’t get mixed up with those entering the UK market.
Many bonded warehouses feature temperature control facilities, dry containers, and ample space for bulky items. This means you know your products will be safe and in excellent condition.
Moreover, bonded warehouses require strict monitoring (including CCTV cameras) and quality record-keeping. Our AMCO Park bonded warehouse, for example, is monitored 24/7 with a fully fitted, high-tech security system inside and out, so your goods are truly secure.
Long-term storage
Do you want to keep your goods in the UK for a prolonged period? Bonded warehouses allow you to store imported goods long-term — often for five years or longer. This option can be helpful if you’re unsure what the demand for your product will be or if you need to carry out further steps to meet certain import or export requirements.
With 110,000 square feet of space, AMCO Park is ideal for consignments of all sizes, whether you’re looking for short or long-term storage.
Port locations
Most bonded warehouses are conveniently located close to ports. Perfect for businesses importing by sea freight. This means you won’t need to travel too far to store your goods, reducing time and expenditure and ensuring your goods are safe.
European logistic & warehousing solutions from AMCO
Whatever your warehousing and distribution needs, AMCO can help. Our state-of-the-art AMCO Park bonded warehousing facility will ensure your goods are safe and secure at all times — whether you store them for several months or several years.
As a trusted European logistics and warehousing provider, we have the experience and knowledge to help your business streamline its import and export operations. To learn more, please feel free to get in touch with the AMCO team today.