Everything You Need to Know About the Customs Warehousing Regime

Category: Customs Author: — Date: — Reading time: —

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This regime allows companies to defer the payment of taxes on the import of non-EU products.

The customs warehousing special regime: a strategic solution for businesses

The customs warehousing special regime is a customs solution that allows companies to store imported goods without having to immediately pay customs duties and import taxes.

This option offers considerable flexibility and financial advantages for companies that import, export, or distribute goods internationally.

Here is a detailed overview of this regime, the benefits of its implementation, and the procedure to follow to access it.

Overview of the customs warehousing regime

What is a customs warehouse?

A customs warehouse is a physical location approved by the customs authorities where imported goods can be stored without immediate payment of customs duties, import taxes, and other fiscal charges. Goods can remain there for a specified period before being either released into free circulation (released for consumption) or re-exported.

Types of customs warehouses

There are several types of customs warehouses:

• Public warehouses: Managed by approved private or public operators, they are open to all companies.
• Private warehouses: Used exclusively by the approved operator, typically a specific company for its own needs.

Functions of a customs warehouse

A customs warehouse has 2 major functions:

• Storage of goods, which comes with deferred payment of duties and taxes.
• Handling: Goods can be kept in their original state or undergo minor handling operations without changing their nature.

Benefits of setting up a customs warehouse

The main benefit of a customs warehouse is to provide financial and operational flexibility to companies carrying out non-EU imports.

Financial benefits

• Deferred payment of duties and taxes: Improve cash flow by deferring the payment of customs duties and taxes until the goods are released into free circulation.
• Reduced transport costs: Goods can be consolidated and shipped in a single consignment, thereby reducing transport and logistics costs. Companies can also increase their stock levels to avoid peak periods in freight transport.

Operational and strategic benefits

• Improved competitiveness: Companies can re-export goods without having to pay customs duties, which can improve their competitiveness in international markets.
• Risk management: Companies can better manage risks related to market fluctuations and exchange rate volatility by storing goods under customs control.

Procedure for accessing the customs warehousing regime

Preliminary steps

1. Needs assessment: Determine whether the customs warehousing regime meets the company’s logistics and financial needs. To find out, you can contact the OneChain team for expert customs advice.
2. Choice of warehouse type: Decide between a public or private warehouse depending on the specifics of the business and the volumes of goods.

Application for approval

1. Application file: Prepare an application file for approval to be submitted to the competent customs authorities. This file must include:
   • A description of the company’s activities.
   • The types of goods to be warehoused.
   • The facilities and security measures in place.
   • The procedures for managing and monitoring goods.
2. Submission of the application: Submit the file to the regional customs directorate or the competent customs administration.

Inspection and validation

1. Facility inspection: The customs authorities carry out an inspection of the facilities to verify their compliance with legal and regulatory requirements.
2. Validation and approval: If the facilities are compliant, the authorities issue an approval allowing the operation of the customs warehouse.

Managing the customs warehouse

1. Record keeping: Maintain accurate and up-to-date records of all warehoused goods, operations performed, and stock movements.
2. Regulatory compliance: Ensure ongoing compliance with customs regulations and the conditions of the approval.

Renewal and audits

1. Renewal of approval: The approval may be subject to periodic renewals, requiring regular inspections and audits.
2. Customs inspections: The customs authorities may carry out unannounced inspections to ensure compliance with the conditions of the approval and current regulations.

Conclusion

The customs warehousing special regime represents a strategic opportunity for companies looking to optimise their goods flow management, reduce costs, and improve competitiveness. By understanding the financial, logistical, and strategic advantages of this regime, and by rigorously following the approval procedure, companies can fully capitalise on the benefits offered by customs warehouses.