The Benefits Of Bonded Storage

Are you a business owner on the verge of signing a deal with an overseas manufacturer? Perhaps you’re a new start-upbonded storage that is looking to offer a product currently missing from the UK market, or an established retailer who wants to expand their product range?

The global supply chain is a complex industry, with rules and regulations that change from country to country. Importing goods comes with its own set of hurdles that must be dealt with before you can start selling your wares, and this includes import taxes and fees which must be paid any time goods come into the country.

However, there are ways to deal with these duty fees without having to hand over a large percentage of your initial funds. One of the most common ways is to store any imported goods in a bonded warehouse.

How can bonded warehousing benefit your business?

Bonded storage is essentially a safe zone for any items that have been imported into the country. Instead of paying the tax duties and VAT up front, bonded storage allows businesses to postpone these payments until the stock is ready to be sold.

This gives the business owners importing the goods a bit of room to manoeuvre, either by preparing to sell the goods locally or re-exporting them, without the risk of handing over money that hasn’t yet been made.

There is always a risk that goods will not sell well enough to cover the cost of purchasing and importing them in the first place, never mind the additional duty fees on top.

With bonded storage, instead of taking a gamble and paying heavy import taxes as soon as the goods arrive, business owners can wait until they have guaranteed enough sales and take the duty fees from those profits.

Similarly, if the goods are destroyed without being sold or re-exported, then businesses will not have to pay the import taxes on them.

Depending on the warehousing company, bonded storage is available for pretty much all types of imported goods, from large items to small, and can help to improve cash flow through your business.

 


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