If you’re hoping to start selling your goods in the UK, you may benefit from bonded warehousing. In this blog post, we explain exactly what bonded warehousing is and how it could benefit you.
What is bonded warehousing?
A bonded warehouse also referred to be as a customs warehouse, is a warehouse where goods and products can be stored in the UK, without technically entering the UK market. This means businesses storing their products in a bonded warehouse do not have to pay VAT or import duty tax while their products are in the warehouse. Only once stock is sold and has left the warehouse must VAT and import tax duties be paid.
What are the benefits of using a bonded warehouse?
You can buy large quantities of stock and equipment without having to pay import tax and VAT all at once. This ensures you only have to pay tax duties on products that are actually sold.
• Faster delivery
Rather than having to ship an item from overseas, you can deliver products to your UK customers quickly and efficiently from your UK warehouse. This will allow your company to make quick turnaround deliveries and guarantee your customers a faster delivery time.
• Easy re-exports
For whatever reason, if you wish to re-export your goods back to where they were manufactured or another destination, you can do so easily with a bonded warehouse. You will not, for example, need to seek a VAT refund as you will not yet have paid it.
• Advanced security
If you choose to use an expert bonded warehousing and distribution service, such as the service provided by AMCO, you can have complete peace of mind that your goods are being stored in the most secure and safe way possible.
• Improved functionality
A pick and pack service can be provided in a bonded warehouse, helping to streamline your manufacturing, packing and distribution processes. This eliminates the need for you to bring in a third-party to pack your items, as this will be handled by the bonded warehouse team.
To learn more about bonded warehousing, and how it could improve your current warehouse and delivery supply chain, do not hesitate to contact AMCO today. We have a high-tech bonded warehouse in the Midlands and would be more than happy to discuss our capabilities with you.