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3 Issues That Might Arise In Your Use Of Bonded Warehousing Services - KTL UK

Submitted by lizseyi on Sat, 06/22/2024 - 07:21

As we previously addressed in some detail in our news section here at KTL, it can be a good idea to embrace the use of bonding warehousing for quite a few reasons.
The advantages of bonded warehousing services include the closeness of such facilities to major ports, as well as the fact that they save importers from having to pay customs duty and VAT until the stored items are taken out of the warehouse or sold.
However, for all the convenience and cost-saving that bonded warehousing services can unquestionably bring, there can still be certain disadvantages, obstacles or issues that can arise with them. Here are a few examples of what we mean.
A need to keep tight control over costs
With the storage of goods in a bonded warehouse frequently being for prolonged periods of time, it can be easy for the costs of such storage to accumulate.
So, you will want to keep a close watch over such expenditure, especially given that much of the whole point of using bonded warehousing services is to save money.
A lack of control over management of the warehouse
You may need to be particularly vigilant in your use of bonded warehousing services if your transported products have specialised requirements in relation to how they are stored and taken care of in the warehouse.
This is frequently the case with shipments that are fragile, or that contain hazardous substances. So, if this describes the goods you are thinking of storing in a bonded warehouse, you should ask the operator of the facility about the special care or controls that will be in place.
Some goods, for instance, need to be chilled or frozen, so you should make sure the warehouse has suitable equipment allowing for safe handling and storage.
The consequences of goods being left in the warehouse for too long
As we touched on above, storage and administration fees can certainly build up if you leave certain items in a bonded warehouse for years and years.
If you wish to store goods on a duty-free basis long-term, they will need to be non-perishable products. Various consumable products – such as meat, poultry, fats, vegetables, fruit, oils, and sugars – can only be stored for a limited time.
There might be circumstances in which customs authorities are able to sell your goods to recover the cost of taxes – so, again, you should familiarise yourself with these.
If you’re on the lookout for bonded warehousing services at any UK port or airport, please don’t hesitate to reach out to KTL to discuss the storage facilities and related solutions we can provide.