Do you import and export goods outside of the UK market?
A bonded warehouse could help you streamline your logistics operations and simplify the process of handling customs.
Read on to find out everything you need to know about bonded warehouses, from what they are to how they are used and why you might need one.
What is a bonded warehouse?
A bonded warehouse (sometimes called a customs warehouse) is a facility where imported goods can be stored until they are ready to be distributed.
It provides a secure and controlled environment for storing goods that haven’t been cleared by customs and, unlike a non-bonded warehouse, the payment of customs duties and taxes can be deferred until the goods are sold or removed.
Bonded warehouses are authorised by HMRC and there are strict security and inventory control measures in place to ensure the integrity of the goods being stored.
What are bonded goods?
Bonded goods are the goods that have been imported and are being held in the warehouse, including finished goods and materials for manufacturing.
For example:
- Alcohol
- Cosmetics
- High-value electronics
- Luxury clothing
- Tobacco
How do you use a bonded warehouse?
If you want to hold your imports in storage rather than declaring and paying VAT immediately, the first step is to register with an HMRC-approved bonded warehouse, like John K. Philips.
Once your goods arrive at the warehouse, they’ll be inspected and verified before being allocated a location.
You can store bonded goods for as long as you need to – whether it be a couple of weeks, a few months, or several years.
While in bonded storage, the warehouse staff will not only ensure your goods are kept safe and secure, but they’ll keep real-time stock of your goods and the duties owed.
As soon as you’re ready to take goods out of storage, let the customs warehouse know.
Before your bonded goods can be distributed in the UK, you must complete a customs declaration and settle any charges that are due. Then, if you opt for bonded storage with John K. Philips, we’ll use our integrated logistics services to pick, pack, and ship your goods to their next destination.
Find out more about the process in our blog ‘How does a bonded warehouse work?’.
The benefits of using a bonded warehouse
For anyone who frequently imports goods and wants to defer the payment of customs and VAT, using a bonded warehouse is a no-brainer.
Here are some of the benefits a bonded warehouse can provide for businesses:
- Improved cash flow – If your goods are destined for the UK market, a bonded warehouse allows you to store goods without immediately paying customs duties and taxes. These only become payable once your goods have left the warehouse, helping you better manage your cash flow.
- Flexibility – A bonded warehouse allows you to store your goods short- or long-term until they’re ready to be sold or distributed. This can help streamline your supply chain operations and ensure smooth and efficient inventory management.
- Convenience – Innovative logistics software and advanced barcode systems make it easier for warehouse staff to provide updates on the status of consignments and inventory levels. John K. Philps is also situated 30 minutes from Manchester Airport and Liverpool John Lennon Airport, with other major ports no more than 2-3 hours away.
- Better quality control – Customs bonded warehouses are highly regulated, undergo frequent inspection by HMRC, and are equipped to store all manner of items. These robust security measures will give you peace of mind.
- Enhanced customer satisfaction – Holding seasonal items in bonded storage until there is demand will ensure you don’t waste time or run into delays importing goods. This means your customers won’t have to wait, and by providing quick turnaround times, they are more inclined to recommend your business to friends and family.
Could you benefit from a bonded warehouse?
Whatever your warehousing and distribution needs, John K. Philips can help.
Our state-of-the-art bonded warehouse facility is located in Warrington, between Junction 8 and Junction 9 of the M62, but we also provide customs warehouse services throughout the North West region of England and beyond.
Our warehousing team have extensive knowledge and experience and will ensure your bonded goods are kept safe and secure at all times – no matter how long you need to hold them in storage.
To learn more about our bonded warehousing solutions or discuss your requirements with our experts, get in touch with us on 01744 751 000.
You can also email info@johnkphilips.co.uk and we’ll get back to you as soon as possible.