The benefits of customs warehousing authorisation
Specialist bearings supplier, SMB Bearings, has gained customs bonded warehousing authorisation. This HM Revenue & Customs (HMRC) authorisation allows traders to store goods imported from outside the UK and EU, without payment of import duty or VAT, until the goods are re-exported to a non-EU country goods or are released into free circulation (subject to payment of duty and VAT). This allows for cost savings to be passed on to SMB Bearings’ non-EU customers.
With rigorous conditions for authorisation, SMB Bearings successfully evidenced that its goods are correctly declared and processed in line with government guidance. Additional audits were also carried out to ensure the standards of customs warehousing authorisation are adhered to, prior to the status being awarded.
Suppliers can either store their goods in an existing customs warehouse or ask HMRC for authority to set up their own customs warehouse on their own premises. Goods imported from outside the UK and EU are eligible for storage in these warehouses which can be useful if a supplier does not know the final destination of the goods when they arrive in the UK, or if the goods will be re-exported, for example. This has obvious cashflow advantages, as goods can remain in the customs warehouse for an indefinite period of time.
“With much uncertainty surrounding customer demand, some businesses will struggle to meet peaks in demand without taking financial risks with their stock,” explained Chris Johnson, managing director at SMB Bearings. “We already had Inward Processing Relief (IPR) status and now this customs warehousing authorisation has strengthened our robust supply chain operations further. This procedure improves our supply efficiency and makes sure we continue to provide exceptional customer service to EU and non-EU customers alike.
“We understand that any period of downtime can be devastating for an industrial business. If you’re looking to source specialist replacement bearings to get your machinery and production line back up and running — every hour counts. Our customs warehouse authorisation allows us to store goods without paying import charges. This means our UK stock will be better organised to service our customer’s requirements wherever they are in the world.
SMB Bearings offer a comprehensive range of miniature, stainless steel, plastic, ceramic and thin section bearings. For further information on SMB Bearings’ range of specialist bearings visit the website: www.smbbearings.com.