RCS Logistics, a third party logistics (3PL) provider based in Corby, Northamptonshire, is pleased to announce that the company has obtained dry bonded status for its warehouse facility in Corby.
Fully approved and subject to regular audits by HM Revenue & Customs (HMRC), RCS' bonded warehouse took 14 months to gain dry bonded status. The site is secure with 24/7 security, computerised stock systems and web-based access to stock records, which enables customers to view stock levels in real time.
In an economic downturn, it is more important than ever that importers of goods - including manufacturers, retailers and packaging firms - look for new ways of cutting costs, improving operations and increasing profit margins. In financial terms, as well as profitability, improving cash flow is equally important.
Bonded warehousing can play a major part in helping importers improve their cash flow position significantly. Storing imported goods in a bonded warehouse enables companies to legally delay the payment of import duty and VAT until the goods are issued from stock. The result is a significant cash flow advantage for the importer.
There are two main types of bond. Wet bond is the term used for tobacco-based and alcoholic goods, although most wet bonds refer to alcohol. A dry bond relates to most other products that do not include alcohol and cigarettes. The dry bond relates to imported items, although the warehouse can be used for exports and local markets too. In the UK, most bonded warehouses tend to be located near to a port of entry, although more third party logistics (3PL) providers are offering bonded warehousing in other regions of the UK.
Andy Barnes, Financial Director at RCS Logistics comments: "Any company that imports dry goods into the UK can benefit. The customer can book their imported goods directly into RCS' bonded warehouse and they will not need to pay customs duty and VAT until those goods are issued out of the warehouse. We are also one of the few, if only, dry bonded warehouse in the East Midlands. Corby is centrally positioned in the UK and so is ideal if a customer needs to use RCS not only for dry bonded warehousing, but also for onward distribution to its customer base."
There are other benefits too, as Andy Barnes explains: "Once the customer notifies RCS that the imported goods are en route to the UK, RCS deals with all Customs procedures and related paperwork. This includes liaising with the client's shipping agent, arranging delivery from the port of entry to the UK directly into RCS' bonded warehouse in Corby. We then notify the customer once the goods are recorded and stored at our warehouse."
When the customer wishes to issue the goods from bond, RCS makes the necessary arrangements with HMRC on their behalf, including payment of VAT and duty, as well as arranging onward delivery to a chosen destination if required.
As Andy Barnes concludes: "Most businesses have some sort of borrowing facility at the bank. So rather than using this overdraft for VAT and import duty payments as imported goods enter the UK, why not delay these payments and use the money for more important, value-added investments by storing these goods in a bonded warehouse? It makes sound economic sense, particularly in a recession where cash flow can be a problem."