The cost-saving potential of bonded warehouses
Import duties

The cost-saving potential of bonded warehouses

Customs duties and taxes on non-Union goods can be deferred when the goods are stored in a bonded warehouse. This enables cost savings for international traders.

Duty savings: a strategic edge

In a competitive global trade landscape, businesses are continuously looking for new ways to streamline operations while cutting costs. One often-underestimated solution lies in the strategic utilization of bonded warehouses. It can enable international traders to defer payment of import duties or even eliminate import duties.

Bonded warehouses offer a distinct advantage by allowing businesses to store goods without paying customs duties and taxes until the moment the goods are released into free circulation (customs cleared) or re-exported outside the EU customs territory. This deferment of duties and taxes presents an immediate financial benefit. By delaying these payments until the goods are removed from the warehouse, companies effectively optimize their cash flow.

The postponement of customs duty payments enables businesses to allocate their financial resources more efficiently. Instead of upfront payments, these funds can be redirected toward activities that support critical operational needs as well as sales and marketing plans that can generate business growth.

Deferred import duty and duty savings 

The cost-savings potential of a bonded warehouse lies in the following two benefits that authorized license holders have access to: duty deferment and duty savings. 

  • Duty deferment: import duties and taxes on goods stored in a bonded warehouse need to be paid when the goods are removed from the facility, not when they enter the country. This enables businesses to bring goods into free circulation when economic circumstances are deemed best: for example, when the local market price has increased due to a change in demand or supply. Businesses can also leverage this deferment of duties to lower their cost of purchasing, for example by ordering in larger quantities or when exchange rates are more favorable. 

  • Duty savings: import duties and taxes can even be eliminated. No import duties and taxes on goods are applicable when goods stored in the bonded warehouse are re-exported outside the EU customs territory.

Investing increased cash flow in growth

Deferred duty payments and savings translate to improved cash flow, which can be leveraged in strategic financial planning aimed at growth. It enables businesses to allocate more funds to revenue generating activities and investment opportunities. 

Investing in process automation and digitalization of bonded warehouse processes can further maximize the cost-savings potential of a bonded warehouse. Customs warehouse software is a common and customs-recommended solution that helps businesses comply with customs formalities and manage inventory in a bonded warehouse. These automation benefits will in turn result in both operational and cost efficiencies.

Maximize financial benefits with customs warehouse automation

AEB offers a digital, multi-country, cloud-based solution that supports customs warehouse owners in managing customs inventory and automating processes to comply with customs authorities in Germany and the Netherlands.