Blog

13-01-2014

The art of customs handling

How to improve the effects of foreign trade?

Bonded warehouses are a relatively unknown mechanism for most; however, they offer interesting advantages for importers and exporters.
For an in depth analysis on how to manage foreign trade operations, it is important to have a good advisor specialized on customs and transit regimes. The customs representative shall guide you through the functioning of free zones and economic customs regimes, and may explain the tax leads of using each figure, like avoiding taxes at the time of the introduction of the goods or the possibility of tax exemption for the export company.
The expert shall recommend on linking the goods to one -or more- of the following regimes:
 

Bonded warehouse

Commonly used to defer the expenditure on imports (VAT and duties) of non-Community goods, until the importer decides to sell, be it in the domestic market, through intra-Community transactions or through exports …

How do companies benefit?
- they are not subject to customs duties during the period that the merchandise remains in the zone;
- the payment of internal taxes is deferred to goods outwards;
- they have no obligation to follow trade policy measures while the goods are in the bonded warehouse;
- partial goods issues are allowed;
- added-value services are permitted (handling, reconditioning, inspection, etc.).

which has an impact on:
- better purchasing management: allowing more imports at the most favorable times, deferring duty payments to the goods outwards;
- improved cash flow and financial savings;
- reduction in procurement times and better management of security stocks;
- conversely, a significant shortening of delivery times;
- an instant suppression of delays: no need of documentation of origin for the reception.
 

Fiscal warehouse (VAT)

Aimed at companies that need more than just a warehouse: classification services, labelling, reconditioning… for final distribution and sale. This scheme also provides significant financial advantages.
Of interest to Spanish companies that want to enjoy tax exemption on their domestic purchases, for being the ultimate destination of the export goods. Domestic companies with triangular operations, seeking purchase and sale between two Spanish companies, will be exempt from VAT, and not only on exports, as they would in a normal case.
The fiscal warehouse allows the import of non-EU goods. Unlike the bonded warehouse, it benefits from the exemption of VAT payment to goods outwards: when the goods enter the zone, the import company shall pay the duties but shall not pay the VAT when they leave the premises, for it is done on a self-assessment basis by the taxpayer, using the proper form of the AEAT.

How do companies benefit?
- they are exempted of the payment of internal taxes;
- the buyer periodically self-assesses the appropriate amount of the VAT;
- partial goods issues are allowed;
- added-value services are permitted (handling, reconditioning, inspection, etc.).

which has an impact on:
- better purchasing management: allowing more imports at the most favorable times, deferring duty payments to the goods outwards;
- better cash flow and financial savings;
- reduction in procurement times and better management of security stocks;
- conversely, a significant shortening of delivery times.
 

Temporary storage facility

The temporary storage facility is an officially approved zone for the reception of non-EU goods, where they can remain until a customs approved treatment is assigned.
Of interest when the warehouses are strategically located. For example, in the case of KALEIDO, the temporary storage facilities allow customs clearance without having to go through the corresponding port area or the nearest customs authority.

How do companies benefit?
- customs clearance made possible in their own warehouse;
- partial goods issues are allowed.

which has an impact on:
- land transport cost reductions;
- reduction in procurement times and improved management of security stocks;
- conversely, a significant shortening of delivery times.

 
Licensed premises for export goods

This figure is used mainly for grouping of goods. When the port of embarkation is different, it allows the export in this authorized zone, without having to go through the corresponding customs zone or the nearest customs authority.
Sometimes, the customs system of other EU countries requires performing the export formalities in the country in which the exporter is established. Therefore, when an exporting company that is located near our licensed premises wants to ship from a remote port, he may not need to bring the goods to the local customs area.
Apart from representing a cost savings in land transport, it also provides speed and agility to the customs export formalities.

How do companies benefit?
- customs clearance made possible in their own warehouse;
- partial goods issues are allowed;
- can store for an indefinite period of time.

which has an impact on:
- land transport cost reductions.
We, customs agents, have a thorough understanding of all possible configurations to manage exports and imports, saving costs and lead-time optimization. In most cases -if not all- cost reduction is important.

Natalia Lago
Customs manager
T [+34] 986 447 475
tenders@kaleidologistics.com
 
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KALEIDO, Ideas & Logistics offers all customs figures that can help importers and exporters achieve financial and economic benefits for their import and export operations. More than 20% of the foreign trade operations managed by KALEIDO use one or more of these customs regimes.
KALEIDO has 26 000 sq.mt. of bonded zones, 20 000 sq.mt. of fiscal areas, 1 200 sq.mt. of temporary storage facilities and 1 200 sq.mt. of licensed premises.
 
Release date: 13 January 2013

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