Maximise Efficiency and Compliance with Customs Warehousing
what is a customs warehouse?
A customs warehouse allows businesses to store imported goods with duty and VAT suspended until they are sold or re-exported. This provides greater flexibility, improves cash flow, and reduces costs for companies dealing with international trade.
Benefits of a Customs Warehouse
Duty and VAT Suspension
Defer import duties and VAT until goods leave the warehouse.
Pay no duty if goods are re-exported, reducing costs for global trade.
Improved Cash Flow Management
Store goods without upfront duty payments, freeing up working capital.
Reduce financial pressure while maintaining stock availability.
Greater Supply Chain Flexibility
Hold stock until needed, allowing businesses to respond to demand.
Store goods for extended periods without immediate financial burden.
Compliance and Risk Reduction
Meet strict HMRC regulations to ensure full customs compliance.
Reduce the risk of penalties by using a regulated customs warehouse.
Cost Savings on Storage and Distribution
Store goods duty-free for longer, reducing overall logistics costs.
Consolidate shipments for more efficient distribution and supply chain management.
Strategic Advantages for Re-Exporting
Avoid unnecessary duty payments when goods are re-exported.
Strengthen global trade competitiveness by optimising customs processes.
There are two types of Customs Warehouse: Type R (Public) & Type U (Private).
You must be authorised by HM Revenue and Customs (HMRC) to run a Customs Warehouse.
rules & responsibilities of customs warehousing
customs warehouse-keeper responsibilities:
- Establishing stock records and maintaining them for a minimum of four years
- Checking goods upon arrival into the Customs Warehouse & notifying HMRC of any shortages or surpluses
- Ensuring adequate security measures are in place to protect both goods & records
- Making sure the Customs Warehouse meets Health & Safety standards
- Providing HMRC with access to your warehouse, goods in storage & records
You can store goods in a Customs Warehouse if:
- You want to hold the goods without paying Customs duties and/or import VAT until you are ready to move them again
- Goods are being moved from another EU country but import taxes have not yet been paid
Goods can be placed into a Customs Warehouse if:
- You don’t know the final destination of the goods when they arrive into the UK
- Import paperwork has been delayed, or you are waiting for a duty-relief quota to become available
To qualify as a warehouse-keeper, your business must:
- Prove that there’s an economic need and you have enough clients or business to run the warehouse
- Be able to comply with the conditions of the Customs Warehouse authorisation
- Provide a financial guarantee (CCG) to cover potential Import Duty and VAT liabilities
what are the benefits of being an importer for customs warehousing?
As an importer, the main benefit of operating a private ‘Type U’ Customs Warehouse is not having to pay Customs duties and/or import VAT until you have to. There is no time limit on how long you can hold goods in a Customs warehouse, and when you do remove goods, they can be removed in quantities appropriate for your business requirements.
what are the benefits of being a warehouse keeper for customs warehousing?
As a Customs Warehouse keeper, operating a public ‘Type R’ warehouse allows you to offer an off-quay storage facility to importers who require additional time before paying Customs duties and/or taxes, but want to avoid high quay rent and demurrage charges.
how many sites does one authorisation cover?
Multi-site facilities can be covered under one authorisation, and there is no requirement to separate duty suspended stock from free-circulation stock providing adequate stock systems are in place.
How VARTAN can help you
VARTAN will assess whether Customs Warehousing is beneficial and appropriate to your organisation.
We will work with you to implement sustainable systems ensuring the required procedures and checks are practical and easy to maintain for ongoing compliance.
We can assist you with preparing and presenting your application to HMRC. In addition, we offer regular auditing services for additional ongoing support.
We can also offer assistance in applying for a Customs Comprehensive Guarantee (CCG). Under current legislation you need to hold a valid CCG to operate a Customs Warehouse, however organisations with AEO-C status are entitled to a reduction or waiver of the guarantee amount.
Our expert knowledge will help ensure your company has the correct policies, procedures and audit trails in place before submitting the application, leading to a successful audit by HMRC and a successful outcome to your submission to become authorised for Customs Warehousing.