Benefits of bonded warehousing

Benefits of bonded warehousing - John K Philips
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Benefits of bonded warehousing


There are no shortage of UK businesses offering outsourced warehousing facilities to UK businesses but not so many have the pedigree and faculty to provide Bonded Warehousing!

If you are involved in importing goods into the UK you will at some point most likely need to store goods in a bonded warehouse. If you’re not sure exactly what bonded warehousing is this article will attempt to fill in the blanks…

A bonded warehouse is actually quite similar to an every day warehouse; unmistakable, but for the fact that in a bonded warehouse, it’s basically a duty-free zone. It’s a secure warehouse building, supervised by customs officers or delegated responsible persons, exempt from paying any customs duties until the goods being stored are sold. Instead, a bond is put up as a guarantee.

Deferring paying the duty until the goods reach the point of sale can have massive advantages for cash flow. There’s nothing as certain as death and taxes which probably explains why bonded warehouses have been around for over two centuries.

Cost-Effective Customs

You have filled your warehouse with goods, but you’re having trouble shifting them. Shame you’ve already paid import duty on them. By going for bonded warehousing, you’re looking to save around 25% in upfront costs.

Well Equipped Warehousing

Whatever you’re importing into the country, you need to know it can be stored, prior to selling. Bonded warehouses often specialise in certain types of storage, from bulk liquids to deep freeze products. Whatever you require storing (legally, of course) can be stored on premises capable of handling the load.

Export Free

For those who import and export, a bonded warehouse is an absolute must. That’s because no duty will be paid for anything you import with the intention of exporting. So your business saves money and time – and as we all say time is money…

Safety First

Bonded warehouses have another great benefit: security. These sorts of warehouses are manned better than some prisons, with customs officers bringing with them high security. Because they’re so integral to the global supply chain – and also because those stored goods have yet to be taxed.

Ultimately, bonded warehouses are an excellent way to save on the costs of safely importing and exporting goods, no matter what they are or how they need to be stored. Using bonded warehousing services also adds value to your business; the money your company saves not paying duty and VAT until after the sale of goods means a much more efficient business with fewer costs. So now you know why bonded warehousing is so beneficial.

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