How to use a customs warehouse

Guidance HOW TO USE A CUSTOMS WAREHOUSE Find out what you need to do when importing goods from outside the UK to a customs warehouse. Get emails about this page CONTENTS * Types of customs

warehouse * Declaring goods in or out of a customs warehouse * Placing your goods in a customs warehouse * Removing your goods from a customs warehouse * Paying duty and import VAT Print

this page If you import goods from outside the UK and want to store the goods to delay duty payments, you can do this in a customs warehouse. Find out more about operating a customs

warehouse. TYPES OF CUSTOMS WAREHOUSE There are 2 types of customs warehouse where you can store your goods. PUBLIC CUSTOMS WAREHOUSE This is a warehouse operated by a business whose purpose

is to store other people’s goods. They are the warehousekeeper and you’re the depositor. PRIVATE CUSTOMS WAREHOUSE This is a warehouse operated by you to store your own goods. You’re the

warehousekeeper and the depositor. You do not need to be authorised by HMRC to be a depositor in a public or private customs warehouse but, if you operate a private customs warehouse, you’ll

need to be authorised as the warehousekeeper. DECLARING GOODS IN OR OUT OF A CUSTOMS WAREHOUSE To declare goods into or remove them from a customs warehouse, you’ll need to do one of the

following: * make a full import or export declaration * make a simplified declaration by using either: * entry in the declarant’s records * simplified declaration procedure Removing goods

from a customs warehouse could be, for example, releasing them to free circulation or declaring them to another procedure. PLACING YOUR GOODS IN A CUSTOMS WAREHOUSE You’ll be responsible

for: * declaring your goods correctly — if you use an agent, you must give them clear written instructions about declaring your goods * making sure that your goods are sent directly to the

warehouse named on your declaration, within 5 working days of them being cleared by customs * providing the warehousekeeper with all the details of the import declaration * making sure the

warehouse is approved for the type of goods you want to deposit — this includes ensuring that the warehouse can accept goods that are chilled, frozen or have special storage needs (such as

chemicals) * declaring your goods correctly on removal from the warehouse REMOVING YOUR GOODS FROM A CUSTOMS WAREHOUSE RELEASING GOODS TO FREE CIRCULATION When you release warehouse goods to

free circulation, you’re ‘discharging’ or removing them from customs warehousing and will have to pay any duty due. You’ll get your entry number electronically through an acceptance

message. You must not remove the goods until you have received a second message confirming the goods have cleared. RELEASING GOODS TO ANOTHER CUSTOMS PROCEDURE No charges will be due if you

move your goods to another customs procedure, such as inward processing, or if you re-export the goods directly from the customs warehouse. A single declaration to declare the goods into

another customs procedure is required to discharge the goods from the customs warehouse. MOVING GOODS TO ANOTHER CUSTOMS WAREHOUSE You can move goods: * within the same authorisation where

it covers different sites (for example, London and Birmingham) * between different authorisation holders Only the receiving depositor will need to complete a declaration when moving goods

between different authorisation holders. You’ll not need to complete a declaration when you move goods between warehouses covered by the same authorisation. You’ll still have to keep records

on the movement of the goods and their location. Your authorisation letter will say which methods you can use to move goods. REMOVING GOODS AS A NEW FINISHED PRODUCT You can classify goods

that enter a warehouse as individual items or parts of a finished product when you remove them. The parts must be presented together in quantities that make a specific number of the finished

products. The goods must have parts so far advanced that they have the essential features of the finished product. Where the finished product contains UK and non-UK parts, the non-UK goods

must form the essential character of the finished product before the addition of the UK parts. For example, if you’re removing parts A, B, C, D and E that make up product F, and you have 12

sets of each (60 parts in total), you can remove the goods as 12 items under the classification that applies to product F. MOVING GOODS TO DUTY FREE STORES, SHIPS OR AIRCRAFT You can move

goods out of customs warehousing to: * duty free stores — for passengers on a ship or aircraft leaving the UK * ships and aircraft stores — for crews of these vessels leaving the UK You do

this by using commercial documents. The data elements that are required and need to be completed in these documents are included in your authorisation letter. RETAIL SALES IN A CUSTOMS

WAREHOUSE You can only make retail sales in a customs warehouse to: * individuals travelling outside the UK * members of international organisations * members of NATO forces * individuals

covered by diplomatic and consular arrangements * remote and online customers, where goods are picked and dispatched to order PAYING DUTY AND IMPORT VAT You’ll need to pay any Customs Duty

due and import VAT when you remove your goods from a customs warehouse to free circulation. To work out how much duty you need to pay, you’ll need the: * quantity of goods being removed *

value of the goods * tariff classification of the goods — this will give you the duty rate If there has been a sale for export to the UK or EU before your goods enter a warehouse, the value

is based on that sale. If there has been no sale for export, then you can make a sale in customs warehousing. Use the duty and exchange rates at the time of removal from the warehouse. When

you release goods to free circulation, you may be entitled to claim a reduced or zero duty rate under a ‘tariff preference’ or a ‘tariff quota’ or if the goods are entitled to an import duty

relief. Import VAT is due when the goods are removed from the warehouse and put in free circulation. Import VAT might not be due if the goods qualify for import VAT relief. VAT ON SALES IN

A CUSTOMS WAREHOUSE If you sell goods while they are in the customs warehouse, they will not be charged supply VAT unless they are retail sales. SIGN UP FOR EMAILS OR PRINT THIS PAGE Get

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