With so much remaining unknown, at this stage the impact of Brexit on the high value goods supply chain can only be guesstimated. As an EU member state, the UK has long enjoyed free trade with its European counterparts, bringing benefits such as zero Customs Duty on products received from or dispatched to fellow European Union (EU) states, as well as minimal red tape.
Whether hard or soft Brexit, leaving the EU is set to change the status quo. Brexit has the potential to:
- increase trade tariffs for importers and exporters
- lead to more complex customs procedures
- have a negative impact on UK/EU trading
If Theresa May pursues a hard Brexit – where the UK leaves the EU single market all together and trades with the EU in the same way non-European countries do – we could see the UK and EU applying tariffs and other trade restrictions on each other. This has the potential to trigger increased prices on imports and therefore duty, reducing cash flow for many businesses in the process. That’s where a bonded warehouse could help.
Why choose a bonded warehouse?
Outsourcing storage to a third-party logistics (3PL) provider with a bonded warehouse is a great way for businesses to save money, manage supply, protect the value of their goods and ensure expedited customs clearance. Yusen’s bonded warehouses offer secure storage space for high value cargo which is subject to import duty and/or Value Added Tax. Using this type of warehouse and distribution facility offers a broad range of benefits, including:
- Improved cash flow: Duty and VAT payments are deferred until goods are sold in a bonded warehouse. This means goods can be stored - tax free - until they leave the warehouse, improving cash flow and reducing the need for borrowing
- Cosy savings: if you intend to export the goods, no duty will be payable in the UK but paid in the country of destination, avoiding double payment of duty and significantly cutting costs
- Guaranteed supply: bonded storage solutions enable goods to be imported and stored in advance of peak seasons, so orders can be fulfilled without delay
- Compliance with Customs & Excise legislation: all inward and outward customs documentation is taken care of as part of the bonded warehouse service
- Access to specialist warehousing services: this includes inspection booths and onsite technical facilities
- Improved efficiency: goods are stored and delivered in one seamless process
- Improved customer service: no delays or availability problems mean happy customers
How Yusen Logistics can help
As the economic and political landscape continues to ebb and flow, we recognise that our customers’ needs are ever changing. In response, we’re expanding and reconfiguring our UK bonded warehouse portfolio to ensure we can offer enough high-quality, tax-efficient storage and distribution space when the EU borders go up.
By outsourcing warehousing and distribution of your high value cargo to a 3PL like Yusen, our clients get access to high-quality UK bonded warehouses throughout the UK.
Space will be available later this year at our state-of-the-art warehouses at Grange Park Industrial Estate in Northampton and Relay Park in Tamworth. Both sites are strategically located near to key transport links and major parcel hubs, making them ideally placed to cater for high value cargo and e-commerce operations which require later next-day cut off times.
Grange Park 2 in Northampton features 200,000 sq ft of racking and floor space, a host of high-tech security features, automated shelving systems and a choice of onsite technical rework areas including wet testing facilities for white goods and consumer electronics inspection booths. In addition to 80,700 sq ft of warehouse space, our Tamworth facility offers 4,500 sq ft of office space, full CCTV coverage and 24-hr manned guarding, perfect for the safe and secure storage of high value cargo – from white goods to tablets.
Yusen’s Authorised Economic Operator status – a guarantee that our role in the international supply chain is secure, and that our customs controls and procedures are efficient and compliant – together with our experienced and dedicated experts offer clients the peace of mind they need that their cargo is protected at every stage in the supply chain.