Unlocking Cash Flow Efficiency with Bonded Warehousing

supply chain

Throughout the world, cash is king. But did you know that the key to managing finances in your supply chain can lie in your storage facility? Discover the advantages of customs bonded warehousing in this article.

Understanding How Bonded Storage Warehousing Works

Usually, you pay duty and VAT when you complete an import clearance. However, you don’t always need to. If you leverage a customs bonded warehouse, then you can suspend the payment of taxes until the goods leave the warehouse.

To use a bonded warehouse, you must have authorisation from customs. The warehouse must also have permission to store your goods, as determined by your commodity codes. It is important to note that only a specific area of a customs warehouse will be for bonded goods and that different storage charges may apply.

Storage Procedures: Entering a Bonded Warehouse

The step-by-step process for presenting goods to a customs bonded warehouse is as follows:

  1. The warehouse receives notice of inbound goods for bond and promptly communicates with their supervising office.
  2. The import declaration is completed and sent to the warehouse ahead of arrival.
  3. Upon clearance for removal, the warehouse is notified, and goods are directly transported for unloading. Travel to other locations, like a container storage yard, should be avoided unless authorised as a customs territory with additional declarations submitted.
  4. Goods are unloaded at the warehouse, and their arrival is promptly confirmed at the supervising office. Any discrepancies are then declared.

Note that the process may be different depending on the customs function, especially when combining the bonded warehouse with Inward Processing Relief.

Storage Procedures: Exiting a Bonded Warehouse

You can either move goods from bonded storage to general storage or load them directly onto a vehicle. If choosing to load a vehicle, the process unfolds as follows:

The warehouse receives the notification of the collection, along with a warrant declaration to remove the goods from bond. After receiving the warrant release, the warehouse updates its system, freeing the goods from bond, and proceeds to pick up the load for collection.

Storage Procedures: Navigating Challenges in the Collection Process

Ensure a smooth retrieval process from a customs bonded warehouse by avoiding these common mistakes:

  • Requesting the warehouse to prepare goods before clearance: The warehouse picks up the load only after confirming the release of the goods. Consider this when planning quick-time vehicle collections.
  • Avoid using blanket clearance for multiple shipments of the same goods: Clearances should specify order numbers, typically referencing the commercial invoice number.*
  • Do not assume a warrant declaration is enough: Although this can help the warehouse to identify any queries, goods cannot be released or picked until the warrant release is sent and tax payment is confirmed.

* Some goods, like reels of paper, are valued by weight. When releasing these from bond, using an average weight may result in shortages as the real weight may be higher. In such situations, we recommend advising the warehouse of your needs and seeking their advice on clearance. 

Supply Chain Efficiency: How Customs Support Boosts Your Business Operations with Bonded Warehousing

At Customs Support, we may not own bonded warehouses, but businesses across Europe consider us a key partner for optimising their supply chains.

Whether it’s through providing essential expertise as customs consultants, fully integrated EDI support for customs clearance, or our distinctive edge as duty management specialists, our experts can make a difference in how your goods move throughout Europe.

Here are some of the things we can do for you:

Tailored Solutions for Your Supply Chain:

Your supply chain deserves more than a one-size-fits-all approach. Our experts take the time to understand your business, allowing us to tailor customs processes that will benefit you the most.

Enhanced Cash Flow

Bonded warehousing goes beyond duty deferral and suspended VAT payments. When combined with other customs functions and the right timeframes, we empower you to keep your cash fluid. This flexibility enables strategic business moves while providing financial breathing space.

Minimised Double-Duty Payments

With Brexit and the general rules of origin constantly changing the way you do business across Europe, avoiding unnecessary duty payments is crucial. We assist in identifying areas where duty suspension and avoidance are possible, preserving your margins and ensuring compliance.

Efficient Order Fulfilment

Timely clearance is essential for smooth order fulfilment. With our digital-first customs approach, Customs Support ensures swift clearances for your bonded warehouses. This supports your picking operations and enables you to meet those last-minute orders.

Compliant and Simple Documentation Management:

Navigating customs complexities across multiple countries, languages, and industries is our expertise. Our experts deliver high-quality data and help to simplify intricate processes throughout Europe. Our goal is to make complicated customs functions simple, allowing for quick, accurate, and confident collaboration.

Unlock Your Supply Chain’s Potential with a Customs Bonded Warehousing

Customs Support is here for you. Whether you can benefit from enhanced cash flow, have more stock on hand in more locations, or simply want to know how to remove the headache of customs across multiple borders, our experts are here for you.

To get started with customs bonded warehousing, book a quick scan with a consultant today.