Bonded warehouse, how to?

[GuyMor]

Hello all.

We are a business based in the UK, but we sell both wholesale and retail all over the world. Including the EU.

Our products (clothing) are produced in the EU (TR and PT), and pre-brexit, imported to our warehouse in the UK and the. Dispatched to the end customer where to a wholesale customer or private individuals.clean and simple process.

Post Brexit, we are looking at duty imposed on arrival of goods into the UK and it seems silly.to pay duty on EU origin products to just then dispatch the to the EU again.

We can't sort the goods at the manufacturers premises.

The solution we are contemplating is having our own warehouse as an approved bonded warehouse, conduct the quality control there, dispatch the EU orders and only keep (and pay) for the rest.

Is that even doable? If so, where do I start?

Thanks in advance for your replies.

 

[Mr D]

We looked into it about 5 years ago.
Can be done by even small companies.

https://www.gov.uk/guidance/apply-to-operate-a-customs-warehouse

 

[GuyMor]

Thanks for the reply.

Yes, I saw that link I was wondering about the reality and day to day if it. How does it work and what will I be getting myself into.

Also, what is the EU application and do I need that as well

 

[Mr D]

From what I recall discussing it with a helpful chap on a helpline 5 years ago it was basically the same as running our warehouse anyway. But a fair bit more paperwork plus inspections.
For what we had in mind at the time for the US market it was a viable option.

 

[Scalloway]

I used to do the bookkeeping for a small bonded warehouse. I didn't get involved but there seemed to be as lot of form filling and faxing HMRC about stock movements.

 

[GuyMor]

Did anyone fill that form/application?

there are two questions I'm not sure how/what the answer is?

https://drive.google.com/file/d/1zrWgxzmoDKZHHkl6ENPLM9qQ7q01QgNU/view?usp=sharing

and
https://drive.google.com/file/d/1-2h9LtxAb72FpG86uS3tPINSpihfki6N/view?usp=sharing

And yes, it does feel strange asking this here but we don't have anyone in the office that knows more about this...

Thanks in advance

 

[Import Expert]

Anyone with a good tax/compliance record and financial standing can apply to have a UK bonded warehouse. There is an application process which may involve a site visit and I believe there is still a need for a financial guarantee, but it can be done.

However you need to give consideration to customs procedures. Moving goods into bond is easy. One customs declaration (which a forwarder will need to do for you) that basically says all the goods on this truck are going into our bond. How will goods be removed from bond? by the item, pallet, 10 pallets? I ask because an ''out of bond' entry will be required for this, which has a cost.

Outside of this, for goods produced in Turkey the UK have a preferential agreement in place so if supplier issues an ATR1 they can come into the UK Duty free anyway. Import VAT in the UK will be postponed from 2021 also so nothing to pay for TR origin goods. However there may be duty to be paid (and of course VAT if vatable clothing) when shipped to the EU after that. Also someone will need to do an export customs declaration out of the UK and one into the EU.

Brexit is unfortunately going to hit a lot of supply chain models for 6.