Customs Warehousing

Customs and Excise Duty, VAT

Customs warehousing means your business can import bulk consignments of goods into the UK, intended to be sold to UK, EU or worldwide customers without incurring customs duties and import VAT at time of entry into the UK. Customs duties only become liable on removal from the warehouse on sale into the UK market.

From the 1st January 2021, importing goods into the UK for onward supply to the EU raises the risk of “double-duties”. On the goods entering the UK and again when they are imported into the EU. Unlike VAT, customs duty is non-refundable and is a bottom line cost to the business.

Potential border changes for Northern Ireland after Brexit, means that customs warehousing may minimise the duty impact within the UK as sales to Southern Ireland will become exports to the EU.

Watch our key facts video or download a copy of the latest information sheet below

Along with customs warehousing businesses should consider using Customs Freight Simplified Procedures (CFSP). CFSP allows a warehouse to remove goods from their stock system and account for the customs duties using a duty management system. This simplifies matters where a business makes sales to wholesalers and end-users by allowing easier control of the management of customs duties.

There are many options available for customs warehousing and the benefits vary depending on your supply chain and customer base. Our experienced Customs Auditors can conduct a review of your international trade activities and identify how best your business could benefit from using customs warehousing to minimise the impact of Brexit.

Find out more

Contact our specialist Indirect Tax team at:

Alison Horner
Head of Indirect Tax

+44 (0)7515 919389
alison.horner@mhllp.co.uk
Andrew Thurston
Customs Consultant

+44 (0)7889 537549
andrew.thurston@mhllp.co.uk

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Customs and Excise Duty, VAT