How to Use Customs Warehousing
- Arne Mielken
- Mar 24, 2025
- 7 min read
Your Guide to Importing Goods to a Customs Warehouse: Steps and Requirements
If you import goods from outside your country and want to store the goods to delay duty payments, you can do this in a customs warehouse if your jurisdiction provides for it. Both the EU, the UK and the U.S.
Types of customs warehouse
There are two types of customs warehouses where you can store your goods: public and private. A public warehouse is operated by a business whose purpose is to store other people's goods, with you being the depositor and they being the warehousekeeper. On the other hand, a private warehouse is operated by you to store your own goods, with you being both the warehousekeeper and the depositor. You do not need authorization from customs authorities to store your goods in either a public or private customs warehouse. However, if you operate a private customs warehouse, you will need to be authorized as the warehousekeeper.
Placing your goods in a customs warehouse
As an importer, you play a crucial role in ensuring that your goods are imported and stored safely and efficiently. To help you fulfill your responsibilities, we recommend the the 5 following steps:
- Take care to accurately declare your goods. If you use an agent, make sure to provide them with clear written instructions about how to declare your goods.
- Ensure that your goods are sent directly to the warehouse specified in your declaration within 5 days of being cleared by customs. This will help to ensure that your goods are stored safely and efficiently.
- Provide the warehousekeeper with all the necessary details of the import declaration. This will help to ensure that your goods are stored in the correct location and that any special storage requirements are met.
- Ensure that the warehouse is approved for the type of goods you want to deposit. This includes making sure that the warehouse can handle goods that require special storage conditions, such as chilled or frozen items, or chemicals.
- Correctly declare your goods when you remove them from the warehouse.
Removing your goods from a customs warehouse
Option 1: Releasing goods to free circulation
When you release goods from a warehouse to free circulation, it's important to understand the process involved. Firstly, you'll need to remove the goods from customs warehousing and pay any applicable duty. To do this, you can choose from one of the following options:
- A full import or export declaration
- An entry in the declarant's records
- A simplified declaration procedure
Once you've made the declaration, you'll receive an entry number electronically through an acceptance message. However, it's important to note that you must not remove the goods until you have received a second message confirming that the goods have cleared.
Option 2: Releasing goods to another customs procedure
If you decide to move your goods to another customs procedure, such as inward processing, you will not be required to pay any charges. Similarly, if you choose to re-export the goods directly from the customs warehouse, you will also not be liable for any charges. It is important to note that this exemption only applies if you follow the correct procedures and regulations for inward processing and re-exporting.
Option 3: Moving goods to another customs warehouse
If you need to move goods, there are a few things to keep in mind. Firstly, if you're moving goods within the same authorisation but between different sites, you can do so without completing a declaration. However, it's important to keep records of the movement of the goods and their location. Secondly, if you need to move goods between different authorisation holders, you will need to complete a declaration. Your authorisation letter will specify which methods you can use to move goods, so be sure to check it carefully. By following these guidelines, you can ensure that your goods are moved safely and efficiently.
Option 4: 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 national and non-national parts, the non-national goods must form the essential character of the finished product before the addition of the national 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
If you need to move goods out of customs warehousing, there may be two options available to you:
1. Duty-free stores: This option is available for passengers on a ship or aircraft leaving your country.
2. Ships and aircraft stores: This option is available for crews of these vessels leaving your coutry.
To make this process easier, you may be able to use commercial documents. An authorisation letter may include all the necessary data elements that are required and need to be completed in these documents. This will help ensure that the process is smooth and hassle-free. Check local requirements. We can help you with that.
Retail sales in a customs warehouse
When operating a customs warehouse, you are only allowed to make retail sales to certain groups of people, including individuals travelling outside your country members of international organizations, members of NATO forces, individuals covered by diplomatic and consular arrangements, and remote and online customers who order goods to be picked and dispatched.
When you remove goods from a customs warehouse to free circulation, you will need to pay any Customs Duty and import VAT that is due. To determine the amount of duty you need to pay, you will need to know the quantity and value of the goods, as well as the tariff classification of the goods, which will give you the duty rate.
If your goods have been sold for export to the UK or EU before entering the warehouse, the value will be based on that sale. If there has been no sale for export, you can make a sale in customs warehousing. You should use the duty and exchange rates at the time of removal from the warehouse.
When you release goods to free circulation, you may be eligible for 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.
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