Bonded warehouses have been around for hundreds of years. They provide a secured storage facility for products imported into the UK from around the world. Essentially using an excise bonded warehouse allows businesses importing alcohol into the UK to defer the payment of the Excise Duty and VAT payable until the goods are sold. While the stock is being stored in the bonded warehouse, the company isn’t required to pay any duty.
Being able to defer the excise duty payment gives businesses flexibility and time to arrange what they plan to do with the stock – whether this is selling the stock locally or arranging to re-export it.
By using an excise bonded warehouse you can reduce the risk your business is exposed to. It allows you to import new product lines without having to pay large tax fees before you have made any money. You can confirm enough sales to cover the duty and VAT before the products are released.
An excise bonded warehouse also makes business sense if you are using the UK as a temporary stopping point and you plan to move your products to another country. Once the stock is in the warehouse the importer and the warehouse owner incur a liability under a bond. If the goods are exported this liability is cancelled and no money has to be paid. This may be of particular use in situations where you are trialling an innovative or new product in a particular market. If the product doesn’t sell you have the option to export it to another part of the world.
If you know you can take advantage of a storage solution without having to pay to cover the excise duty straight away, your business will be in a better position to capitalise on fluctuations in exchange rates and other price-determining factors.
Security is also a key benefit. If you are storing valuable goods you will want to make sure they are held securely. Bonded warehouses have to meet strict rules set by HM Revenue & Customs, meaning they must be secure at all times. However, you still have the right to access your stock if you need to repackage it etc.
Bonded warehouses play an important part in the international supply chain. They allow businesses to move products around quickly and efficiently. If you choose a 3PL provider like Johnston Logistics UK they can provide a total logistics solution for your goods – including deliveries, logistics, distribution and warehousing. For more information, check out http://www.johnstonlogistics.co.uk/logisticsservices/excise-bonded-warehousing/
We have many clients using our bonded warehousing facilities located conveniently to the eastern shipping ports of Harwich and Felixstowe and a direct access to the A11. As an example today we have over 20,000 pallets of wine stored under bond and we can pick and dispatch these by the pallet, the case or even by the bottle using our own premises licence, which is ideal for customers selling direct to consumers by ecommerce websites.
Johnston Logistics UK will carry out a complete evaluation of your warehousing requirements and create a bespoke solution for all your needs in one package. We can provide cost effective services to both small and large businesses. For more information, call us on 01953 888381.