What is Bonded Warehousing?

A bonded warehouse is a site where goods imported are stored before they move on to their next destination and are tightly regulated by UK customs. The benefit of a bonded warehouse is that goods stored within them are not liable for customs duties. The site essentially acts as a temporary ‘duty free’ area until the goods are needed to be transported on.

Once the goods are moved, the taxes or duties will then be payable if they are moving into a ‘new market’ or, in other words, the UK. It is for this reason that this type of warehousing is highly beneficial to businesses who wish to export goods out of the UK which haven’t actually entered the UK market.

Using bonded warehousing can make supply chain management and cash flow much more efficient. The process offers significant benefits to businesses which import or export goods although the usage of bonded warehouses does vary from country to country. 

Is Bonded Warehousing beneficial for your business?

Bonded warehouses offer a number of benefits for businesses that import and export large quantities of goods, especially if this means they incur significant custom duties. Bonded warehousing allows the goods to move significantly closer to their final destination, with the ability to delay duty payment which is clearly beneficial for a business’ cash flow.

If your business is importing goods to then export them on to other markets, then bonded warehousing is essential as it allows you to keep your goods stores without the payment of import – duty which will save time and means you avoid paying duty twice.

Another benefit of storing goods in a bonded warehouse is Port Centric logistics, which means you can store and distribute your goods from the port of entry when required. This is a clear benefit, reducing costs across the supply chain due the reduction in time to distribute which also lowers the risk of damage, and is a more environmentally friendly approach.

At Xpediator we can offer advice on bonded warehousing solutions as well as services to manage all areas of custom clearance and import and export formalities. You can read a more detailed article on bonded warehousing here: https://xpediator.com/what-is-bonded-warehousing-and-how-can-it-help-your-business/ 

If you would like to find out more about our services then head here: https://xpediator.com/divisions/warehousing-logistics/

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