Bonded Warehousing Services
Bonded Warehousing Services for London & the South East – Bonded Storage That Cuts Costs
When managing international supply chains, especially in the UK, controlling costs and maintaining compliance are paramount. Our warehousing solutions, featuring specialised bonded storage, provide a way to store imported goods under strict customs control while deferring payment of UK duties and import VAT until the goods are released into the UK market. This approach significantly improves your cash flow by lowering upfront costs, simplifies the process of re-exporting goods, and offers clear visibility through a sophisticated Warehouse Management System (WMS) from intake to final delivery.
By utilising customs bonded warehouses, businesses can leverage a secure facility that holds goods in a bonded status, meaning that the payment of customs duties and taxes is suspended until the merchandise is either sold domestically or moved out of the bonded warehouse. This arrangement aligns with HM Revenue & Customs (HMRC) regulations and offers many advantages for importers and exporters alike. For more details on customs warehousing and duty deferment, you can refer to HMRC’s official guidance.
Interested in cutting your warehousing costs? Get a fast quote today → Call 01234 567 890 or email hello@freightcservices.com.
Why Choose Freight Connect Services for Warehousing
At Freight Connect Services, we offer flexible warehousing options tailored to your business needs, whether you require bonded warehouses or standard storage. You can choose to store goods under customs bonded control or in a non-bonded space, depending on your duty and VAT strategies. This flexibility ensures you only pay customs duties and import VAT when your goods enter free circulation in the UK, helping you defer taxes and improve cash-flow management.
Our advanced WMS provides real-time stock visibility, allowing you to track inventory by batch, lot, or SKU with features such as ASN receipt, scan-in/scan-out, and configurable alerts. This transparency supports efficient inventory management and helps you make informed decisions in your supply chain.
Beyond storage, we provide pick, pack, and fulfilment services tailored to both B2B and eCommerce workflows, including marketplace integrations, cartonisation, and kitting. Our cross-dock and consolidation services facilitate rapid transhipment from ports and airports, reducing dwell time and streamlining your logistics.
Strategically located near Heathrow Airport (LHR) with quick access to major motorways like the M25, M4, and M3, our warehouses benefit from excellent connectivity to key UK ports such as London Gateway, Felixstowe, and Southampton, as well as regional hubs including Gatwick and Stansted. This location advantage helps accelerate your supply chain operations.
Compliance is at the heart of our operations. We follow HMRC-aligned procedures with robust record-keeping and secure site controls. Our processes are AEO-aware, ensuring smooth customs interactions and peace of mind for your business. For more on our compliance standards, visit HMRC’s customs warehouse management guidance.
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What Is a Bonded Warehouse?
A bonded warehouse—also known as an HMRC-authorised customs warehouse—is a secure storage facility where imported goods can be held without immediately paying customs duties or import VAT. The key benefit is that taxes are suspended while the goods remain in the warehouse and only become payable when the goods are released into free circulation within the UK market.
If the goods are re-exported from the bonded warehouse, you typically do not have to pay UK duty or import VAT. This makes bonded warehouses an excellent solution for businesses that need to store inventory over an extended period or those involved in international trade requiring flexible customs procedures.
The warehouse operator maintains detailed records and adheres to strict HMRC controls until the goods are discharged, ensuring full compliance with regulatory requirements. In short, a bonded warehouse means improved cash flow, reduced risk, and simplified customs management while your stock is stored securely.
Bonded Storage Benefits
Simpler re-exports
Moving goods from the warehouse to export destinations can be done without triggering UK duty or VAT, reducing administrative complexity.
VAT suspension
Import VAT is also postponed until goods enter free circulation. If you re-export goods directly from the bonded warehouse, you avoid paying import VAT altogether.
Cash-flow smoothing
Aligning tax payments with revenue inflow helps businesses manage their finances more predictably.
Duty deferment
By storing goods in a bonded warehouse, you can delay paying import duties until the goods are released for sale in the UK, freeing up working capital. This deferral is a significant financial benefit for companies managing large inventories. HMRC guidance
Compliance confidence
Bonded warehouses operate under strict HMRC rules with controlled access, audit-ready records, and security protocols, giving you peace of mind.
These benefits make bonded warehouses especially attractive for companies looking to optimise their supply chain and reduce costs related to customs duties and taxes.
Our Warehousing Capabilities
Ambient & Temperature-Controlled Options
We offer versatile storage solutions to meet diverse product requirements. Our ambient pallet storage includes racking and floor stacking options, while temperature-controlled environments are available for sensitive SKUs such as pharmaceuticals or certain food products. We work closely with clients to define target temperature ranges and conduct regular audits to maintain compliance.
Inventory Management & WMS
Our Warehouse Management System provides comprehensive capabilities, including: Real-time visibility of stock levels, locations, and statuses (bonded or non-bonded) Tracking by batch, lot, serial number, expiry dates, and rotation methods such as FIFO or FEFO Advanced receiving processes with ASN handling, barcode scanning, cycle counts, and audit trails Easy data exports compatible with your ERP or MRP systems, plus API integrations for seamless connectivity
Pick, Pack & Fulfilment
We support various fulfilment needs, including: B2B case and pallet handling as well as eCommerce single- and multi-line orders Value-added services such as kitting, light assembly, relabelling, and rework (subject to customs permissions for bonded stock) Integration with courier services for last-mile delivery and pallet networks for B2B distribution
Cross-Docking & Consolidation
Our facilities enable rapid port and airport intake with quick turnaround for outbound shipments, reducing dwell time and improving supply chain efficiency. We also offer vendor consolidation to minimise international freight legs and UK delivery touchpoints. Where permitted, we can prepare goods for retail, including ticketing and quality control for bonded stock.
Security, Insurance & Compliance
Security is paramount. Our warehouses feature 24/7 monitored CCTV, controlled access zones, and seal checks. We maintain documented Standard Operating Procedures (SOPs), conduct thorough staff vetting, and enforce visitor controls. All bonded inventory is managed under HMRC-aligned record-keeping systems, with permissions required before goods are removed or discharged. For more information, please refer to HMRC’s customs warehouse requirements.
Bonding Warehouse Process – Step by Step
Industry Use Cases
Coverage & Locations
Our warehousing services cover London & the South East with a typical service radius of approximately 150 miles, extending to national distribution. We maintain fast, reliable links to key transport hubs:
Airports: Heathrow (primary), Gatwick, Stansted
Ports: London Gateway, Felixstowe, Southampton
Motorways: M25, M4, M3, M1, M11
Examples of transit capabilities include same-day collections to Heathrow and next-day trunking to major UK carriers and pallet hubs, subject to volume and cut-off times.
Pricing & How Quotes Work
Storage profile
Bonded vs Non-Bonded
Handling requirements, customs messaging, and record-keeping
Throughput
Number of receipts, picks, and value-added services like kitting or relabelling
Transport
Port/airport drayage, final-mile delivery, and timed services
Data & Integrations
EDI/API connectivity and reporting packages
To get an accurate quote, please provide details such as the number of pallets or SKUs, average days on hand, pick profiles (B2B vs D2C), any special handling needs, and customs status.
Documents & Compliance (HMRC customs, EORI, AEO)
To operate within the UK customs framework, you will need
EORI Number
Essential for customs processes in the UK.
VAT & Duty
HMRC’s VAT and tax warehousing notices explain how VAT applies within and between warehouses and on removal. HMRC VAT guidance
Customs Entries & Records
We operate in full alignment with HMRC guidance on customs warehouses. Clearance messages from customs are required before goods can be released into free circulation. HMRC guidance
Authorised Economic Operator (AEO)
Holding AEO status can facilitate smoother customs interactions. Note that AEO accreditation applies to the legal entity and does not automatically extend to clients. HMRC AEO details
Case Study Snapshot
Results in the first 90 days included
Over £250,000 deferred in import charges during the launch phase
Average dwell time of just 2.1 days before release, thanks to cross-dock and bonded holding
99% on-time dispatch rate to 3PL carriers, optimising the handoff from bonded to duty-paid status
FAQs
What does “bonded warehouse” mean?
Who can use bonded storage?
How long can goods stay bonded?
Goods can remain indefinitely in a bonded warehouse, provided they stay under customs control with proper records.
What’s the process to release to free circulation?
Can I re-export without paying UK duty/VAT?
What activities are allowed on bonded goods?
Storage and certain handling are permitted under HMRC rules; some movements require prior permission.
Are there goods that can’t be stored?
Prohibited or restricted goods follow specific HMRC controls; commodity codes should be provided to confirm admissibility.
How are costs calculated?
Costs cover storage, handling, value-added services, customs administration, and transport.
Is my stock insured?
Our site has insurance coverage; you should maintain goods-in-storage insurance for your inventory.
How do I see my inventory?
Inventory is accessible via WMS dashboards, exports, and API, showing stock levels, locations, and movement history.
Is AEO required?
AEO is not mandatory for bonded warehouse use but may offer customs facilitation benefits.
Minimum terms?
Flexible month-to-month or contract terms are available based on volume and service needs.
Bonded vs Non-Bonded Storage (Feature/Benefit Table)
| Feature | Bonded Storage | Non-Bonded Storage |
|---|---|---|
| Duty & VAT timing | Deferred until free-circulation release | Paid on import |
| Re-exports | No UK duty/VAT on eligible re-exports | Usually not applicable |
| HMRC controls | Under customs control; strict records/permissions | Standard commercial storage controls |
| Cash flow | Optimised (lower upfront tax outlay) | Higher upfront tax outlay |
| Allowed activities | Limited/permissioned under HMRC rules | Broader rework/fulfilment options |
| Best for | Imported stock awaiting UK sale or re-export | Domestic stock or already duty-paid goods |