By export- and import duties customs clearance plays a significant role. For all incoming goods, which could not be cleared immediately, the right decision is to use customs warehousing. This opportunity, as well as all related customs clearance services is provided by GTM Solution in different logistic nodes.
Customs warehousing is used as a way to minimize import duties or value-added tax (VAT) on incoming (in the European Union) goods. This is an effective way to enable importers to choose the best time to clear goods and pay duties or re-export them outside of the European Union. The advantages of this process are cost savings and optimization of distribution. However, storing goods in a customs warehouse can often involve highly complex internal control procedures before the goods can obtain approval. Depending on the nature of goods, type of warehouse, distribution plans and customs requirements, this process can vary.
Being able to suspend the payment of import duty and/or VAT, with no time restrictions, can be very beneficial, not only to the cashflow, but also to companies. Companies can choose to store the goods at their own defined location (private warehouse), use their inventory system to control the goods or pay a 3rd party to store them in a defined location (public warehouse). A defined location can be a whole building, a small compartment in a building, an open site, a silo or a storage tank. The location or inventory system must be authorized by customs before the customs warehouse procedure can be used.
According to the Customs Code, a customs warehouse is approved by the customs authorities and monitoring of the customs place, can be mounted on the goods under the certain conditions. A bonded warehouse is a warehouse for untaxed and uncleared interim storage of goods represents the goods that are stored in the customs warehouse for the period until they are released for free circulation or it is determined the further process concerning the goods. In case, if goods do not get the free traffic, but are sold, it comes to transit trade.
The main advantages of the customs warehouse is exemption from import duties during storage. The external clearance documents, such as import permits must not be present.
The motives for customs storage are:
- logistics and transit function
- creation function
- re-export function
- credit function
- political control trade measures etc.
The amount of goods allowed to be held in warehouses is limited to keep them preserved with a view to subsequent distribution. However, it is possible to process goods under customs control on the premises of a customs warehouse. GTM Solution GmbH provides the possibility to store goods in a customs warehouse up to 20 days without charges on import for importing them into the European Union.