Glossary
What is a customs warehouse?
A customs warehouse is an approved facility where imported goods can be stored without paying import duty or import VAT until they are released to free circulation or re-exported, in which case the duty never becomes due at all. |
How does a customs warehouse work?
Goods enter under the customs warehousing procedure and duty is suspended, not cancelled. The liability stays attached to the goods. When they are removed to free circulation, duty and VAT are calculated and paid; if they are re-exported or moved to another special procedure, the suspension carries on.
Who uses one, and why
- Importers holding stock for uncertain destinations, paying duty only on what enters the UK market.
- Businesses re-exporting part of their stock, avoiding duty entirely on that share.
- Traders managing cash flow, since duty falls at the point of sale rather than the point of arrival.
What HMRC expects in return
Authorisation, a guarantee in most cases, and stock records that can account for every item at any moment. HMRC audits the records rather than the shelves an unexplained shortfall creates an immediate duty debt on goods you may no longer have.
iCustoms tracks entries and removals against your warehouse stock so the audit trail holds up. |
