Bonded warehouse

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A bonded warehouse; what is that exactly and what are the benefits?

You have most likely come across the term bonded warehouse, but what does it mean exactly? A bonded warehouse provides the opportunity to store goods temporarily, without the obligation to pay import duties and VAT. Bonded warehouses have already been set up in many countries, both within and outside Europe. To better understand the operation and benefits of bonded warehouses, it is important to answer a few questions.

Who can benefit from a bonded warehouse?

As long as you are importing from outside the EU, storage at a bonded warehouse can be an interesting option, irrespective of the type of product or business. For example, there are bonded warehouses with cooling and freezing systems and facilities which allow for bulk storage. If your company is engaged in re-exporting to outside the EU, then a bonded warehouse is the ideal solution to avoid double payment of import duties and taxes. But also if you transport your goods further within the EU, storage at a bonded warehouse will be advantageous to you.

What types of bonded warehouses are available?

There are many different types of bonded warehouses. The most important difference is that between a private and a government bonded warehouse. The government type is meant for storage of goods by anyone and the private type is intended only for storage of goods by the manager of the bonded warehouse; it is not required for him or her to be the owner of the goods. Within these two types of bonded warehouses another subdivision can be made between bonded warehouses of types A, B, C, D, E or F; each type has its own specific requirements and regulations. Types A and F do not exist in the Netherlands. More information is available on the website of the Dutch Tax Authorities.

What are the main advantages of storage at a bonded warehouse

As mentioned earlier, storage at a bonded warehouse is mainly characterised by the effect it has on payment of VAT and import duties. This entails various advantages, such as:

Import duties due can be minimised by searching for optimum rates at the right moments.
Positive effect on your company's cash position, because payment of import duties is postponed.
If goods are re-exported, no import duties are payable.

When do you have to pay your import duties and VAT?

Import duties and VAT are only payable when the goods leave the bonded warehouse and are released onto the EU market. But what happens when your customer is situated in Switzerland, for example? If your final customer is situated outside the EU, your goods can be transported to their final destination under a T1 document. You will then only pay import duties and VAT in the country of destination. An important fact is that Customs wish to have it guaranteed that import duties and VAT will be paid. They will therefore demand a bank guarantee or monthly credit.

Are the goods allowed to be ‘treated’ or ‘processed’ at the bonded warehouse?

While your goods are stored at the bonded warehouse they are allowed to be ‘treated’, but only after permission from Customs. There are three categories which fall under this ‘treatment’: - Preparing for distribution or re-sale (e.g. re-packing); - Storage in good condition (e.g. replacing packing); - Improving commercial quality (e.g. labelling).

Are you looking for a bonded warehouse?

Intervracht has its own bonded warehouse in strategically situated Zevenaar, in the province of Gelderland. The shed is situated outside the congested areas and the east of the Netherlands offers excellent connections with the European hinterland. Moreover, thanks to its worldwide network, Intervracht has access to bonded warehouses anywhere in the world. Contact Intervracht‘s customs experts if you need more information or if you are interested in our service.