Looking for cash-flow improvements?
Running Customs Warehousing can bring significant benefits to any business by delaying the payment of import duty and VAT.
By obtaining an approval to operate a customs warehouse, the duty and VAT payments are delayed until goods are withdrawn from bond. At that stage an import declaration is made and the duty and VAT is paid. The cash flow savings and duty saving opportunities are obvious and significant.
If the goods are sold in the EU, only the customs duty is payable as long as the EU customer can provide an EU VAT registration number. If the items are exported outside the EU, no duty or VAT is payable.
The Customs Warehouse have to operate a duty management system which interfaces directly with the HMRC’s computer system known as CHIEF (Customs Handling of Import and Export Freight).
To implement Customs Warehousing, businesses need to use some Duty Management software packages or implement Customs Freight Simplified Procedures (CFSP). Selecting the Duty Management software provider is a critical decision which will have a huge impact on the costs. At Supply Chain Advisory, we can guide you and provide a Duty Management software that meets your requirements.
It usually takes between 3-6 months to complete the Customs Warehousing process:
- Before deciding which method of operation, we advise you to look at the business case to establish costs and benefits
- Then, the business can choose the most appropriate method and the Duty Management Software
- This is followed by building a prototype system with skeleton documentation
- Application for Customs Warehouse and CFSP
- HMRC check the application and decide if there are any additional requirements
- Once HMRC authorise the Customs Warehousing, we will test the system and work out a go live schedule
Customs warehousing can bring substantial benefits both in controlling the flow of merchandise and savings in tax.
At Supply Chain Advisory we can assist you through all the process, helping you to decide and implement the strategy, choose the right Duty Management Software provider, application forms, simplifying your procedures, improving your customs compliance and unlocking much needed cash-flow.Learn more about Supply Chain