What is a Tax Warehouse Bond?

A Bonded Warehouse is a customs-controlled warehouse or secured area, where dutiable (imported) goods are retained until such time that the duty owed on the goods is paid.

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A Tax Warehouse Bond is a Revenue & Customs Bond required by Revenue & Customs for bonded warehouses and goods held therein. It acts as security to ensure that the Government receives payment for duties and taxes on goods held which are dutiable.

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Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond. This liability is generally canceled when the goods are:

• exported; or deemed exported;

• withdrawn for supplies to a vessel or aircraft in international traffic;

• destroyed under Customs supervision; or

• withdrawn for consumption domestically after payment of duty.

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While the goods are in the bonded warehouse, they may, under supervision by the customs authority, be manipulated by cleaning, sorting, repacking, or otherwise changing their condition by processes that do not amount to manufacturing.

Customs warehousing is one of a number of procedures provided for in EU legislation which are referred to collectively as Special Procedures. Customs warehousing allows non-Union goods to be stored in a designated location within the customs territory of the EU without being subject to import duties. Duty becomes payable when the goods are released for free circulation.

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A bonded warehouse can be publicly owned by the state or by private enterprise. In the latter case, a Tax Warehouse Bond or a Customs Bond agreement is required by the state.

See Revenue for further details and guidance.

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Why get a Tax Warehouse (Customs) Bond?

• When imported goods are held in a privately-owned Bonded Warehouse facility a Warehouse/ Customs Bond is obligatory in advance of duty being paid.

• For the importer, failure to arrange a Bond may result in delays, not clearing customs, and possible fines.

• In the case of the Drinks Industry, it is a requirement by Revenue for setting up a Distillery.

• For the State (the Principal), it is a guarantee that payment for import duties & taxes will be received.

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Who requires a Tax Warehouse (Customs) Bond?

• Any business importing dutiable goods

• Any business storing dutiable goods

• Freight forwarders

• Logistics Companies

• Distilleries

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Who is the beneficiary of a Tax Warehouse (Customs) Bond?

• The state – Revenue & Customs

• HM Revenue & Customs

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To get started

• Complete the proposal form. Download here

• Last two years consolidated audited accounts

• Up-to-date management accounts

• Details of banking and borrowing facilities (Bank information Form here) – client needs to send to their bank for completion

Revenue & Customs Bonds are obligatory. Failure to arrange a bond can cost time and money. Whether you are in the business of importation or own a Distillery, you are obliged to secure a Revenue & Customs Bond. With vast experience and knowledge of legislative requirements, Surety Bonds can service your bonding requirements without delay. Get in touch today to find out how we can assist you.

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