A warehouse system at the service of UK traders
The system of warehouses is a scheme of the Delamod Bulgaria partner network to offer customers convenience when exporting and importing goods from the UK. This convenience consists in the possibility to defer the payment of excise duty.
Imposition of fees to be paid immediately
After Brexit, from 1 January 2021, new procedures and requirements for imports and exports from the UK are in force. Fees often have to be paid for goods imported into the country. Payment must be made immediately even though the goods have not yet been sold.
In addition, imports of alcohol and tobacco products are subject to additional excise duties, which must be paid when these goods are produced, not when they are sold.
In addition, customs duties are payable on importation of goods.
How to delay payment of fees through a warehouse system
In this type of warehousing, special storage space is provided for goods subject to import duties and VAT. By warehousing them, it is possible to avoid the payment of fees until the allocation for sales begins. During the period of storing the goods can be sorted, repackaged and processed.
Thus, the warehouse system is a kind of „duty-free“ zone where two types of storage are provided - „wet“ and „dry“. The warehouses for the first type of storage are used to store alcohol and tobacco as well as foodstuffs.
Most imported goods can be stored in a warehouse system indefinitely, but if they are covered by the Common Agricultural Policy (CAP), they are subject to more specific regulations. Such foods under the CAP include oils, fats, meat, sugar.
When the goods have to leave the warehouse, the fees due must be paid unless they are moved to another warehouse in the system or are directed for export.
The benefits of a warehouse system
- Deferral of payment of fees
As we have already pointed out, the deferral of fees is an important advantage of the warehouse system. Wine, food and tobacco traders benefit from this advantage. Preparations for sales can thus be made conveniently. If goods are exported, costs can be avoided altogether. There is evidence of traders who have saved between 25% and 30% by using the system from warehouses.
- Long-term storage
Above we mentioned this important advantage. Goods can be stored in the UK warehouse system indefinitely. During this time, paperwork can be prepared, licence requirements or restrictions can be met, or goods can be re-exported.
- Anticipating demand
With long-term storage, the warehouse system can build up stocks of goods to be available during periods of high demand, such as the period before Christmas.
- Preservation of goods
During the storage period, all goods are provided with the necessary storage equipment to preserve their quality, such as temperature control, freezers, etc.
- Security for goods
Security is maintained by video surveillance and documentation of each item of goods.
- Convenient location of warehouses from the system
Most warehouses of the system are located close to major transport hubs, ports, airports. Thus, the goods quickly reach the warehouses and are then quickly sent to stores or for export. This reduces distribution time and transport costs.
To take advantage of the benefits of warehousing, in the UK and beyond, contact the specialists at Delamod Bulgaria.