Customs warehousing is a regime which allows the customs duty due on imported goods to be suspended until removal from the customs warehouse regime. A customs warehouse can either be a defined location (such as premises or place) or an inventory system authorised sometimes known as a “virtual warehouse”.
Benefits available under customs warehousing include:
Saving on entry processing costs and agents costs;
Cashflow and cash injection equating to the dwell time x monthly duty costs;
Discrepancies in invoice versus agreed supplier prices;
Warehouse to warehouse transfers;
Delays requirement in meeting particular conditions (such as certain import licensing documentation, preference certificates etc);
Discharging of another customs procedure (such as IPR) without physically exporting the goods;
Co-storage of goods subject to another customs procedure (such as Free Circulation, IPR, PCC).