Bonded Warehousing
Bonded warehousing services for customs and duty excise
Enquiries, please contact:
Ged Carabini
Emma Jones
07721 719 378
Bonded warehouse solutions
Kammac operates two types of bonded warehousing for our customers. We operate both Customs (dry) bonded warehouses and Excise (wet) bonded warehouses.
Both types of warehouses operate from the same principle, that while goods are stored in a bonded warehouse, certain taxes such as VAT and Import duties are suspended. Once they move from these bonded warehouses unless they are moving to another bonded facility or to another tax regime they are once again subject to the normal VAT and duties.
What is bonded warehousing?
A bonded warehouse is a secure facility where goods can be stored without payment of duty or excise. The purpose of a bonded warehouse in customs operations is primarily to facilitate international trade and provide certain benefits to importers, exporters, and other parties involved in the movement of goods.
Customs bonded or ‘Dry Bonded’ warehouses allow you to store imported goods with duties and VAT suspended until they go to market or move to a different tax regime.
Excise bonded warehouses or ‘Wet Bonded’ allow the storing of alcohol without
being subject to excise taxes until they are ready to go to market.
What are the benefits of using a bonded warehouse via 3pl?
Using a bonded warehouse via a third-party logistics (3PL) provider offers significant advantages for businesses in the UK. It includes cost efficiency by avoiding upfront expenses, flexibility to adapt to market changes, expertise in customs compliance, strategic access to distribution hubs, enhanced service levels, and risk mitigation through expert management.
Overall, partnering with a 3PL for bonded warehousing streamlines operations and enhances supply chain efficiency for UK businesses.
What are the key functions and purposes of a bonded warehouse in customs operations?
1. Duty Deferral
Goods stored in a bonded warehouse are not subject to duties or taxes until they are removed for consumption or exported. This allows businesses to defer payment of duties until the goods are sold or moved out of the country, providing cash flow advantages.
2. Customs Compliance
Bonded warehouses are subject to strict customs regulations and oversight to ensure compliance with import/export laws. This helps in maintaining accurate records of inventory, tracking movements of goods, and ensuring proper documentation, which is crucial for customs clearance procedures.
3. Value-added Services
Bonded warehouses often offer value-added services such as sorting, labelling, packaging, and assembly. This enables businesses to customise their products according to market demands or specific customer requirements while the goods are in
storage, without incurring duty payments.
4. Storage and Inventory Management
Bonded warehouses provide a secure and controlled environment for storing goods. They offer facilities for efficient inventory management, including tracking stock levels, monitoring expiration dates (if applicable), and implementing FIFO/LIFO (first-in, first-out/last-in, first-out) inventory management methods.
5. Transshipment and Re-export
Goods stored in bonded warehouses can be transhipped or re-exported to other countries without being subject to duties or taxes in the country where the bonded warehouse is located. This facilitates international trade by providing a centralized location for handling goods destined for multiple markets.
6. Temporary Storage
Bonded warehouses are often used for temporary storage of goods awaiting customs clearance or undergoing inspection. This helps in streamlining the customs clearance process and reducing delays in the movement of goods across borders.
FAQs about bonded warehousing
Wet bond is operated specifically for alcohol and tobacco products. It allows manufacturers and retailers to store products, for example in order to stockpile for projected spikes in sales without paying VAT until it is ready to be shipped out to retailers.
Dry bond is commonly used by companies importing into the UK. Customs Bonded Warehousing here enables traders importing into the UK to store their products with import duties suspended.
Once again this allows them the option of storing products in bonded facilities until they are ready to ship these to retailers.
If they are using the UK as a distribution hub, or their plans change, and they are shipping the items to a third country then moving from a Customs Bonded Warehouse to ship them internationally will avoid any UK duties being paid.
- We complete due diligence on you as a company
- Once our due diligence is completed you will become an approved customer
- Product familiarisation is the next stage – this will include our in-house team establishing quality and technical agreement for storage and handling of your products
- Onboarding – the final stage will be establishing details of service including entering you into our WMS and establishing work instruction and processes
Using a bonded warehouse can be a strategic decision for businesses involved in international trade. Here’s some guidance on how to effectively utilise a bonded warehouse:
1. Understand the Regulations: Familiarise yourself with the customs regulations and requirements governing the use of bonded warehouses in the UK. Ensure compliance with all applicable laws and regulations to avoid any penalties or delays.
2. Identify Suitable Goods: Determine which goods in your supply chain can benefit from storage in a bonded warehouse. Typically, high-value goods, goods with fluctuating demand, or goods subject to seasonal variations are good candidates. Also, consider goods that require processing, repackaging, or assembly before final distribution.
3. Assess Cost-Benefit: Evaluate the cost implications of using a bonded warehouse compared to traditional storage options. While using a bonded warehouse can provide cash flow advantages by deferring duty payments, there may be associated storage and handling fees to consider. Conduct a cost-benefit analysis to ensure that using a bonded warehouse aligns with your overall business objectives.
4. Choose the Right Provider: Select a reputable bonded warehouse provider with experience handling your specific types of goods. Consider factors such as location, facilities, security measures, and track record in customs compliance. Ensure the bonded warehouse provider offers the services and support you need to efficiently manage your inventory.
5. Implement Inventory Management Systems: Establish robust inventory management systems to track the movement of goods in and out of the bonded warehouse accurately. Utilize technology such as barcode scanning, RFID tagging, or warehouse management software to maintain real-time visibility of your inventory levels, monitor stock rotation, and manage order fulfilment effectively.
6. Optimise Supply Chain Operations: Integrate bonded warehouses into your
overall supply chain strategy to optimize logistics operations. Utilise the flexibility offered by bonded warehouses to streamline your supply chain, reduce lead times, and improve inventory management practices. Coordinate closely with suppliers, distributors, and logistics partners to ensure smooth coordination and timely movement of goods.
7. Stay Compliant: Stay vigilant about compliance with customs regulations and reporting requirements. Maintain accurate records of all transactions involving goods stored in the bonded warehouse, including receipts, withdrawals, and inventory adjustments. Regularly audit your processes and procedures to identify any areas for improvement and address any compliance issues promptly.
By following these guidelines, businesses can effectively leverage bonded warehouses to optimise their supply chain.
Locations
Kammac currently operate the following wet and dry Bonded
Warehouses:
| Customs Bonded Warehouses | Excise Bonded Warehouses |
|---|---|
| Skelmersdale M58 365 | Skelmersdale M58 365 |
| Manchester 208 | Runcorn 152 |
| Worksop 68 | Warrington 379 |
| Knowsley Jupiter 143 | Burton 101 |
| Knowsley 200 | Preston 90 |
| Preston 90 | Manchester 208 |
| Runcorn 152 | |
| Knowsley Titan 525 | |
| Warrington 379 | |
| Wavertree 170 | |
| Widnes 258 | |
| Burton 101 |