Unlocking Cash Flow Efficiency with Bonded Warehousing
Throughout the world, cash is king. But did you know that the key to managing finances in your supply chain can lie in your storage facility? Discover the advantages of customs bonded warehousing in this article.
Understanding How Bonded Storage Warehousing Works
Usually, you pay duty and VAT when you complete an import clearance. However, you don’t always need to. If you leverage a customs bonded warehouse, then you can suspend the payment of taxes until the goods leave the warehouse.
To use a bonded warehouse, you must have authorisation from customs. The warehouse must also have permission to store your goods, as determined by your commodity codes. It is important to note that only a specific area of a customs warehouse will be for bonded goods and that different storage charges may apply.
Entering goods into storage at a bonded warehouse
The step-by-step process for presenting goods to a customs bonded warehouse is as follows:
- The warehouse receives notice of inbound goods for bond and promptly communicates with their supervising office.
- The import declaration is completed and sent to the warehouse ahead of arrival.
- Upon clearance for removal, the warehouse is notified, and goods are directly transported for unloading. Travel to other locations, like a container storage yard, should be avoided unless authorised as a customs territory with additional declarations submitted.
- Goods are unloaded at the warehouse, and their arrival is promptly confirmed at the supervising office. Any discrepancies are then declared.
Note that the process may be different depending on the customs function, especially when combining the bonded warehouse with Inward Processing Relief.
Removing goods from a customs bonded warehouse
Goods may either be removed from bonded storage to general storage, or loaded straight onto a vehicle. When loading onto a vehicle, here is the process:
- Notification of collection was sent to the warehouse, along with the warrant declaration to remove the goods from bond.
- Upon receiving the warrant release, the warehouse may release the goods from bond in their system and then pick the load for collection.
Storage Procedures: Navigating Challenges in the Collection Process
Here are some of the fatal assumptions made when removing goods from a customs bonded warehouse:
- Asking the warehouse to prepare the goods ahead of clearance. Until the goods are confirmed released, the warehouse may not pick the load for collection. Bear this in mind when arranging vehicles to collect in quick time.
- Using a blanket clearance to clear multiple shipments of the same goods. The clearance must identify exactly which order numbers are being cleared, usually by referring to the commercial invoice number.*
- Assuming that the warrant declaration is enough. Although this can help the warehouse to identify any queries, they cannot release goods from bond or begin the picking process until the warrant release is sent as this confirms the taxes are paid.
* Some goods, like reels of paper, are valued by weight. When releasing these from bond, you cannot use an average weight as the real weight may be higher and this will leave a reel short. Equally, nominating reels yourself may mean digging into stows to find them. In these situations, it is best to advise your warehouse of what you need and ask for their advice on what to clear.
How Customs Support provides businesses like yours with bonded warehousing:
At Customs Support, we don’t own bonded warehouses, yet businesses like yours throughout Europe value us as a key partner for supply chain optimisation.
Whether it’s through providing essential expertise as customs consultants, fully integrated EDI support for customs clearance, or our distinctive edge as duty management specialists, our experts can make a difference in how your goods move throughout Europe.
Here are some of the things we can do for you:
Tailored Solutions for Your Supply Chain:
Your supply chain doesn’t need a “one size fits all” approach. Our experts get to know your business so that we can leverage the customs processes that will benefit you the most.
Enhanced cash flow
Suspended duty and VAT payments are only the tip of the iceberg with bonded warehousing. Combined with other customs functions and the right time frames, we can help you keep your floating cash available so that your business can make calculated moves whilst having financial breathing space.
Minimised double-duty payments
With Brexit and the general rules of origin constantly changing the way you do business across Europe, it’s important to avoid paying duty where possible. By helping you ascertain where you can suspend and avoid duty, we help keep your margins healthy whilst staying compliant.
Efficient order fulfilment
Getting your goods cleared to order requires a timely operation. Thanks to our digital-first approach to customs, Customs Support can provide you and your bonded warehouses with quick clearances that support your picking operation and help you meet those last-minute orders.
Compliant and simple documentation management:
Navigating the customs landscape across multiple countries, languages, and industry nuances, we’ve perfected the art of delivering high-quality data so that our experts can streamline multifaceted processes across throughout Europe. We make complicated customs functions simple so that you and we can work quickly, accurately, and confidently.
Unlock your supply chain’s potential with a customs bonded warehousing
Customs Support is here for you. Whether you can benefit from enhanced cash flow, have more stock on hand in more locations, or simply want to know how to remove the headache of customs across multiple borders, our experts are here for you.
To get started with customs bonded warehousing, book a quick scan with a consultant today.