Customs Consultancy

Customs Warehousing

What is a Customs Warehouse?

A customs warehouse allows traders to store goods with duty or import VAT payments suspended. Once goods leave the warehouse, one must pay duty unless they are re-exported or move to another customs procedure. HMRC must authorise you to run a customs warehouse.

For companies that hold imported stock in the UK for onward distribution in the domestic market, EU or non-EU countries, it is possible to import goods without paying duty or VAT as long as they stay in a customs warehouse. These warehouses are places where duty is suspended.

Placing goods in a customs warehouse delays the payment of charges until the goods are moved into free circulation or removes charges entirely if the goods are to be re-exported or moved to another customs approval.

For example, you could import goods from the USA, store them in a customs warehouse in the UK for as long as you need, then move to a customs warehouse in Spain without paying duty.

Goods in a customs warehouse are controlled through accurate accounting and reporting systems, which record where the goods are and stock levels.

A Customs warehouse generally needs to be operated with simplified procedures. This enables authorised businesses to declare goods electronically direct to Customs.

“We were approached by one of our clients for Brexit Contingency planning. Following a full review the company’s processes and supply chain, they are now undergoing an AEO application and looking into setting up a Customs Warehouse to benefit them for the onward sales in the EU (Post Brexit) and rest of the world, avoiding paying unnecessary duties.”

For more information and to learn about your options around customs warehousing, contact us here.