Types of customs-bonded warehouses
Customs-bonded warehouses are divided into two main categories: public and private facilities.
Public Customs Warehouses are available to authorized operators who provide warehousing services to clients. These come in three types:
- Type I Warehouse: Both the authorization holder and the customs procedure holder share responsibility for the procedure, with mandatory customs approval of the facility
- Type II Warehouse: The holder assumes sole responsibility for the warehouse procedure, with obligatory customs approval
- Type III Warehouse: Operated directly by customs authorities
Private Customs Warehouses are facilities where the authorization holder is also the procedure holder and bears full responsibility. These include:
- Private warehouses with approved storage premises that have received customs authority approval
- Private warehouses without customs approval, which may operate multiple storage locations whose addresses are registered with customs authorities
Key advantages
The customs-bonded warehouse procedure provides significant benefits for importing companies:
Duty Deferral: Goods stored in customs-bonded warehouses are exempt from import duties, VAT, and other taxes until they are released for domestic consumption. This creates substantial cash flow advantages for businesses.
Trade Policy Exemption: Products in bonded storage are not subject to various trade policy measures that would otherwise apply to imported goods.
Unlimited Storage Duration: Companies can maintain duty-free imported inventory for as long as needed without time restrictions, providing flexibility in inventory management and market timing.
Strategic Flexibility: Businesses can defer payment of customs duties and taxes until goods are actually needed for distribution or sale, allowing for better financial planning and reduced upfront costs.
This customs procedure is particularly valuable for companies managing international supply chains, as it allows them to position inventory within the EU market while deferring tax obligations until the optimal moment for market entry.
