When trading internationally, you’ll deal with customs regulations, import duties, and VAT. These costs and procedures directly impact your cash flow and delivery times. A bonded warehouse, also known as a customs warehouse, can be a smart solution for this. But what exactly is it and how can you make the most of it?
What is a Bonded Warehouse?
A bonded warehouse is a special type of warehouse under customs supervision. You can store goods here without immediately paying import duties or VAT. These charges are only collected when the goods are actually released into free circulation in the EU.
Goods can remain in such a warehouse indefinitely. This gives you, as an importer or exporter, more control over when you incur costs and how you manage your inventory.
How does it work in practice?
For example, if you import products from Asia for sale in Europe, instead of paying import duties immediately upon arrival at the port, you first store them in a bonded warehouse. You only remove them from the warehouse when there’s an order or when you decide to sell them in a specific country.
This prevents you from incurring costs while your inventory hasn’t been sold yet. And if you sell part of your inventory outside the EU, you won’t pay any import duties or VAT in Europe on that portion.
Benefits of a Bonded Warehouse
Using a bonded warehouse can be highly beneficial, especially when you’re smart about timing and inventory management.
- Cost advantage: you only pay import duties and VAT upon release of the goods, improving your cash flow
- Distribution flexibility: goods can be shipped directly to the end customer or to other countries without additional import costs in the EU
- Extended storage without extra charges: as long as the goods remain in the warehouse, no import duties are levied
- Efficient consolidation: multiple shipments can be combined before release, which can reduce transportation costs
Smart Use in International Trade
A bonded warehouse is more than just storage space. It can be a strategic component of your international supply chain.
- Strategic location choice
Choose a location close to major ports, airports, or distribution centers. This saves on transport and reduces delivery times. - Working with reliable logistics partners
Since customs warehouses must comply with strict regulations, partnering with an experienced logistics provider is essential. They ensure correct customs documentation, regulatory compliance, and efficient handling. - Cash flow planning
Use the delayed payment of import duties to optimize your liquidity. This can be particularly useful for seasonal trade. - Export without double taxation
When re-exporting goods outside the EU, you don’t pay import duties within Europe. This makes re-export much more attractive.
Van Der Helm as your Bonded Warehousing Partner
At Van der Helm, we offer bonded warehouse solutions that are fully integrated into your international supply chain. Our team has years of experience with customs procedures, storage, and distribution. We ensure your goods are processed safely and efficiently, taking care of all administrative obligations.
Want to know how bonded warehousing can strengthen your international trade? Read more about our warehousing services or contact us directly for a customized solution.