Customs warehousing is a procedure that lets you store imported goods without paying import duty or VAT until they are released into free circulation (or re-exported).
What is customs warehousing?
It suspends duty and import VAT while goods sit in an authorised warehouse. You pay only when (and if) the goods are released to the UK market — useful for cash flow and for goods that may be re-exported.
Who uses customs warehousing?
Importers holding stock before sale, distributors serving multiple markets, and businesses wanting to defer duty until goods are actually needed.
How it relates to classification
Goods are declared with their commodity code into and out of the warehouse; accurate classification keeps the duty calculation right at the point of release.
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FAQ
Frequently asked questions
No — it defers it. Duty and VAT become payable when goods enter free circulation, or are avoided if re-exported.
Yes — you need HMRC authorisation to operate or use a customs warehouse.