What is a Customs Bonded Warehouse?

A Customs Bonded Warehouse is a customs-controlled warehouse where imported products intended for export can be held in the UK without entering the UK market. Businesses don’t have to pay import duty or VAT if they employ bonded warehousing, which effectively makes the bonded warehouse a duty-free zone while products are stored there.
 

 

Why are custom bonded warehouse used?
  • Businesses can hold their imported products in customs-bonded warehouses if businesses are unsure of their destination or as temporary storage if they want to re-export items beyond the UK.
  • Businesses can use a bonded warehouse as a warehousing facility while you wait for complete UK customs clearance and tax payment.
  • Businesses can also arrange to sell products directly for home consumption if the bonded storage facility provides a pick and pack service.

Types of Custom Bonded Warehouses:

There are two types of customs bonded storage facilities that match to a certain customs entry bond which are dry custom bonded storage and wet customs storage.

Dry Custom Bonded Warehouse:

Ecommerce, packaging, food, drinks, raw materials, and any other material that is not alcohol or tobacco can be stored in a dry custom bonded warehouse. As a result, they’re mostly employed for other tariffed and VAT-exempt imported items.

Wet Custom Bonded Warehouse:

Alcohol, tobacco, and other excise items can be stored. The duty on the commodities may or may not be paid.

Benefits of Custom Bonded Warehouses:

Improves the Cash Flow:

Using a custom bonded warehouse will boost the cash flow of your business. Import duty and VAT charges can be deferred until your products are sold or depart the warehouse. There is no upfront payment is necessary, and duties and taxes can be paid after the goods have been picked and packed for home consumption or have left the warehouse.

Long Term Storage:

Using a customs bonded warehouse for long-term storage allows importers to build strategic relationships with local vendors and more time to complete paperwork and comply with the regulatory standards. We have a wide range of storage options including Pallet Storage which is designed to keep your products safe.

Improved Customer Service:

You can order items ahead of anticipated demand by using bonded warehouses. Because the goods are kept closer to the customer, you can deliver more promptly with our next day delivery service and provide a better overall experience.

You will not experience delays if you store your products with Meteor Space. To ensure that the products are delivered to clients in the best possible condition, we use appropriate materials and packaging. Between the packaging and delivery stages, we work incredibly hard to ensure that the product is handled with care, preserving the quality of your items.

Safe and Secure Storage:

At Meteor Space, your products will always be safe with our security measures. We have 24/7 CCTV on-site and access control system installed to ensure our entire custom bonded warehouse is safe and secure.

Our dry bonded custom warehouse products must be meticulously documented, inspected and audited on a regular basis. We take pride in safeguarding the quality of your products to provide a high quality service to your customers. Your goods will be delivered to your consumers in the condition that you expect, resulting in happy customers.

Contact us Today:

When it comes to shipping, bonded warehouses have several advantages. Working with a bonded warehouse like Meteor Space can be a terrific advantage for your business if you intend to store your goods for a period during customs or want to stay ahead of a predicted demand surge.

If you would like to find more about working with a custom bonded warehouse will add value to your business, please get in touch today.

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