Bonded Warehousing
Bonded Warehousing offers significant cash flow benefits as companies do not incur the vast majority of import duty costs until the goods are ready to be released into the market.
Most companies do not sell their goods within four weeks of receiving stock into their warehouse. This means that they will have paid the Duty and VAT up front on all of their stock.
By using a bonded warehouse all of the stock in the warehouse can be classed as “Duty suspended”, thus avoiding this advance Duty Payment on goods which may not be sold yet and will reside in stock for months.
Improve Cash-flow
In summary, any business that imports stock can legally defer payment of Duty and VAT until the stock leaves the warehouse (ie is sold), thus improving cash flow.

