Suspending payment of import taxes
A Customs Warehouse allows an importer to store goods with duty or import VAT payments suspended. Duties must be paid when goods are removed from the warehouse unless they’re re-exported or moved to another Customs procedure.
There are two types of Customs Warehouse; Type R (public) and Type U (private). You must be authorised by HM Revenue and Customs (HMRC) to run a Customs Warehouse.
Type U warehouse
As an importer, the main benefit of operating a private ‘Type U’ warehouse is not having to pay Customs duties and/or import VAT until you have to. There is no time limit on how long you can hold goods in a Customs warehouse and, when you do remove goods, they can be removed in quantities appropriate for your business requirements.
Type R warehouse
As a warehouse keeper, operating a public ‘Type R’ warehouse allows you to offer an off-quay storage facility to importers who require additional time before paying Customs duties and/or taxes, but who want to avoid high quay rent and demurrage charges. This could be for a number of reasons, such as awaiting commercial paperwork, quota, or that the goods are not yet required.
Multi-site facilities can be covered under one authorisation and there is no requirement to separate duty suspended stock from free-circulation stock providing adequate stock systems are in place.
How MVC can help you
MVC will assess whether Customs Warehousing is beneficial and appropriate to your organisation. We will work with you to implement sustainable systems ensuring the required procedures and checks are practical and easy to maintain for ongoing compliance. We can assist you with preparing and presenting your application to HMRC.In addition, we offer regular auditing services for additional ongoing support. We can also offer assistance in applying for a Customs Comprehensive Guarantee (CCG). Under current legislation you need to hold a valid CCG to operate a Customs warehouse, however organisations with AEO-C status are entitled to a reduction or waiver of the guarantee amount.
Our expert knowledge will help ensure your company has the correct policies, procedures and audit trails in place before submitting the application, leading to a successful audit by HMRC and a successful outcome to your submission to become authorised for Custom Warehousing.