Reasons why your business needs a bonded warehouse

What is a bonded warehouse? It is also called a Customs warehouse and refers to a storage facility where imported goods can be kept until export without officially entering the UK market and therefore liable to duty. They are, in effect, a duty free zone.

How can this concept help your business? The first major way this type of warehouse could benefit your business is in terms of freeing up essential cash flow. By not having to pay duty until goods are sold, there is no risk of being out of pocket, if for example, there are some goods that are harder to shift. This helps to avoid paying duty costs on goods that might be sitting in the warehouse for prolonged periods.

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A company can effectively avoid paying duty twice if it is in the business of importing for export to non-EU countries. A bonded warehouse means no duty is paid on imported items that are to be exported, saving businesses around 30%. Find out more about Bonded Warehouse Software at a site like

Most bonded warehouses are located in ports, meaning a much less complex supply chain is required. The goods come in and are ready to leave without excessive transportation costs. This creates quicker lead times, a faster turnaround, a reduced carbon footprint and less risk of goods getting damaged in transit.

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As you can see, there are multiple benefits to having a bonded warehouse and it might be something to consider for your business.

Jack Henry

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