Total CIF value of goods imported annually.
Weighted average customs duty rate across your imports.
Average time goods remain in the warehouse before release or re-export.
Monthly cost of operating or renting the customs warehouse facility.
Your cost of borrowing or opportunity cost of capital, used to calculate cash flow savings from deferred duty.
Proportion of imported goods re-exported without entering the UK market (no duty payable).
Reg. 07380272 · England & Wales · Est. 2010
Considering a customs warehouse?
Get advice on warehouse authorisation, duty suspension benefits, and whether bonded warehousing suits your business model.
Net Annual Saving
-£16,294.52
Payback Period
N/A
Duty Saved
£7,500.00
Standard Import
With Customs Warehouse
Not cost-effective: The warehouse costs exceed the duty and cash flow savings. Consider increasing re-export volumes or negotiating lower warehouse fees.
Re-Export %
30.0%
Storage Days
60
Payback
N/A
Everything you need to know about customs warehousing in the UK
What is a customs warehouse?
A customs warehouse (also known as a bonded warehouse) is a secure facility approved by HMRC where imported goods can be stored without paying customs duty or import VAT. Duty and VAT are only payable when goods are released into free circulation in the UK. If goods are re-exported to another country, no UK duty or VAT is due at all. This makes customs warehousing a powerful tool for businesses that import, store, and distribute goods internationally.
What types of customs warehouses exist?
HMRC recognises several types of customs warehouse. Type I is a public warehouse run by a warehouse keeper for multiple importers. Type II is a private warehouse used by the warehouse keeper for their own goods. Type III is a public warehouse where the warehouse keeper is also the authorisation holder. The type you choose depends on whether you need to store your own goods exclusively or offer warehousing services to third parties.
What are the benefits of customs warehousing?
The key benefits include: duty deferral — delay paying customs duty until goods enter free circulation, improving your cash flow; duty elimination on re-exports — no duty or VAT on goods shipped to other countries; simplified procedures for managing large volumes of imports; and the ability to carry out certain operations on goods (such as repacking, labelling, and quality testing) while they remain under customs control.
How does duty suspension work?
When goods enter a customs warehouse, customs duty and import VAT are “suspended” — meaning they are not yet payable. The duty becomes due only when goods are removed from the warehouse and released into free circulation in the UK. If goods are re-exported, destroyed, or moved to another customs procedure, the suspended duty is never collected. This suspension applies for as long as goods remain in the warehouse, with no time limit under normal circumstances.
Who should consider a customs warehouse?
Customs warehousing is most beneficial for businesses that: import goods with high duty rates; re-export a significant proportion of imported goods; need to hold large inventories before selling domestically; or want to improve cash flow by deferring duty payments. It is commonly used by distributors, e-commerce fulfilment centres, manufacturers who process imported materials, and trading companies that buy and resell internationally.
How do I get authorised for a customs warehouse?
To operate a customs warehouse, you must apply to HMRC for a Customs Warehouse Authorisation using form C&E810. You will need to demonstrate that you have suitable premises, proper record-keeping systems, and adequate security measures. HMRC will assess your compliance history, financial standing, and the suitability of the proposed warehouse location. Alternatively, you can use an existing public customs warehouse operated by a third-party logistics provider, which avoids the need for your own authorisation.
HMRC-Aligned: This calculator uses standard UK customs duty and VAT rules for the 2025/26 period. Actual savings depend on your specific commodity codes, trade agreements, and warehouse operating costs. For tailored advice, consult a licensed customs broker or freight forwarder.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms