What is Bonded Warehousing and what are the benefits?

A bonded warehouse is a secure space where goods liable to import duty and or Value Added Tax (VAT) are stored. Duty and VAT payments are deferred until the goods are sold or removed from the bonded warehouse. This method of storage has obvious benefits for sellers who import/ sell goods liable to these charges. Suppliers of food, wine, tobacco and spirits are common users of bonded warehouses.

• Deferred payments means no tax is paid until the goods are sold, improving cash flow. This can be somewhere between 25% -33% of the upfront cost of imported goods.
• If you intend to export the goods, no duty will be payable in the UK but paid in the country of destination. This avoids double payment of duty, a significant cost saving.
• Another benefit is certainty of supply. Goods can be imported and stored in advance of peak season so they are available for order fulfilment without delays improving customer service.
• Bonded warehouses often have specialised facilities such as deep freezes of large vats to store wine/spirits.
• Onward transportation when the goods are sold and the duty paid is also part of the bonded warehouse fulfilment service.
• Inward and outward customs documentation is also provided by the bonded warehouse facility.

bondedwarehouse

DK Fulfilment offers ‘dry’ bonded warehousing

This means they can provide a bonded warehouse facility for all goods with the exception of cigarettes and wine, which are housed in ‘wet’ bonded warehouses.

The process is seamless:
• Customer notifies DK goods are en route to the UK.
• All required customs documentation is completed.
• When goods are received in the bonded warehouse they are booked in and stored and customer is notified of their arrival.
• All information can be accessed and downloaded from our system by the customer.
• When the goods are removed from the bonded warehouse.
• The appropriate de-bonding customs’ documentation is completed.
• Goods are removed to the normal pick and pack warehouse.
• Goods are picked, packed and delivered.

Improve cash flow, save money, let the experts complete the documentation and have your goods delivered in one seamless process from DK fulfilment.

Image credit

Written by

Comments are closed.