A Customs and Excise Warehouse, commonly known as a Bonded Warehouse, has been located at our premises where customers utilizing the clearing services of the company, are able to store dutiable products without the payment of the customs duty. The maximum storage time allowed is two years. The duty is payable when the goods are required to be withdrawn from storage.
The advantages to using a bonded warehouse are:
- The deferment of duty and VAT until the goods are required. This relieves cash flow.
- If goods are intended or are possibly going to be exported, they can be warehoused and exported from bond without payment of duty. (Except in the case of exports by road where a deposit to cover duty and vat must be lodged with Customs, to be refunded when export is proved).
The main disadvantage would be the risk of duty on a certain products being increased while the goods are in the warehouse.
The following conditions apply:
- The duty rate applicable at the time of withdrawal (UNLESS BEING EXPORTED FROM THE WAREHOUSE) is the rate in force at that time and not the rate that was applicable at the time of warehousing. In other words if the duty is increased by Government during the time the goods are warehoused then the increase will apply. By the same token, if the duty is reduced, the lower rate will apply.
- Only dutiable goods may be warehoused however both duty and VAT is then deferred while in the warehouse. Goods on which VAT only is payable may not be placed in a Bonded Warehouse.
- If, while in the warehouse, duty is totally removed by Government from a certain product, then the goods must be removed immediately from the warehouse and the VAT applicable must be paid.
- All goods must be removed and duty paid after the two year period is expired.
- No goods may be removed from the bonded warehouse WITHOUT PROPER CLEARANCE AND PAYMENT OF DUTIES AND VAT HAVING TAKEN PLACE.
In some instances, especially with large importers, it may be viable for the importer to establish his own bonded warehouse on his own premises. We provide a service to do this for the importer, if this interests you please visit our consultancy page.
As an extension of our services to our customers we also offer a limited amount of open storage for very reasonable rates. Our warehouses are equipped with modern equipment which gives us the capacity to pack and unpack containers at reasonable rates.
who we are associated with