If you import goods from outside the UK and want to store the goods to delay paying duty payments,and VAT, you can do this in a customs warehouse.

You will not need to pay duty and VAT if you either:

• re-export your goods
• move your goods to another customs procedure other than authorised use

You must be authorised by HMRC to run a customs warehouse as a warehousekeeper. Find out more about the application process — check Apply to operate a customs warehouse.

Find out more about operating a customs warehouse.

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• where documents such as licences are not available when you import your goods
• originally imported to a special procedure and being warehoused before being re-exported
• on which duty is not due but import VAT is
• that have been released to free circulation
• now in free circulation, which are the subject of a claim under the Rejected Imports arrangements

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You do not need to be authorised by HMRC to be a depositor in a public or private customs warehouse but, if you operate a private customs warehouse, you’ll need to be authorised as the warehousekeeper.

Depositors do not need to own the goods, but they will need to take on the responsibility and liability if any duties and import VAT becomes due.

The depositor must be established in the UK and the person who either: 

• submits the import declaration
• arranges for an agent to submit the import declaration

You can find more information about depositing goods in a customs warehouse in the Special Procedure: customs warehousing Customs Technical Handbook.

Declaring goods in or out of a customs warehouse

To declare goods into or remove them from a customs warehouse, you’ll need to do one of the following:

• make a full import or export declaration
• make a simplified declaration by using either:
  • entry in the declarant’s records
  • simplified declaration procedure

Removing goods from a customs warehouse could be, for example, releasing them to free circulation or declaring them to another procedure.

Placing your goods in a customs warehouse

You’ll be responsible for:

• declaring your goods correctly — if you use an agent, you must give them clear written instructions about declaring your goods
• making sure that your goods are sent directly to the warehouse named on your declaration, within 5 working days of them being cleared by customs
• providing the warehousekeeper with all the details of the import declaration
• making sure the warehouse is approved for the type of goods you want to deposit — this includes ensuring that the warehouse can accept goods that are chilled, frozen or have special storage needs (such as chemicals)
• declaring your goods correctly on removal from the warehouse

Removing your goods from a customs warehouse

Releasing goods to free circulation

When you release warehouse goods to free circulation, you’re ‘discharging’ or removing them from customs warehousing and will have to pay any duty due.

You’ll get your entry number electronically through an acceptance message. You must not remove the goods until you have received a second message confirming the goods have cleared.

Releasing goods to another customs procedure

No charges will be due if you move your goods to another customs procedure, such as inward processing, or if you re-export the goods directly from the customs warehouse.

A single declaration to declare the goods into another customs procedure is required to discharge the goods from the customs warehouse.

Moving goods to another customs warehouse

You can move goods:

• within the same authorisation where it covers different sites (for example, London and Birmingham)
• between different authorisation holders

Only the receiving customsdepositor warehouse will need to complete a declaration when moving goods between different authorisation holders.

You’ll not need to complete a declaration when you move goods between warehouses covered by the same authorisation. You’ll still have to keep records on the movement of the goods and their location.

Your authorisation letter will say which methods you can use to move goods.

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 UK and non-UK parts, the non-UK goods must form the essential character of the finished product before the addition of the UK 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

You can move goods out of customs warehousing to:

• duty free stores — for passengers on a ship or aircraft leaving the UK
• ships and aircraft stores — for crews of these vessels leaving the UK

You do this by using commercial documents. The data elements that are required and need to be completed in these documents are included in your authorisation letter.

Retail sales in a customs warehouse

You can only make retail sales in a customs warehouse to:

• individuals travelling outside the UK
• members of international organisations
• members of North Atlantic Treaty Organisation (NATO) forces
• individuals covered by diplomatic and consular arrangements
• remote and online customers, where goods are picked and dispatched to order

Paying duty and import VAT

You’ll need to pay any Customs Duty due and import VAT when you remove your goods from a customs warehouse to free circulation.

To work out how much duty you need to pay, you’ll need the:

• quantity of goods being removed
• value of the goods
• tariff classification of the goods — this will give you the duty rate

If there has been a sale for export to the UK or EU before your goods enter a warehouse, the value is based on that sale. If there has been no sale for export, then you can make a sale in customs warehousing. Use the duty and exchange rates at the time of removal from the warehouse.

When you release goods to free circulation, you may be entitled to claim 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.