The benefits of introducing a bonded warehousing solution into almost any supply chain should not be underestimated. Whilst duty deferment has long been the route for higher rate goods (such as alcohol and tobacco) there could be validity across a whole host of other imported goods. However, in many cases this has never even been considered.

The benefit of suspending duty on the highest rated goods is an obvious one, given the lack of encumbrance on operating capital it provides. This is especially the case when considering these duties are only owing once goods are taken out of bond – usually once sold. In this instance, the duty at no time limited the company’s cash flow.

However, does it always need to be these higher rate goods for which storing under bond is of benefit? Not necessarily – it depends wholly on the time in storage and volumes. Even items subject to low rates of duty could negatively impact a company’s cash flow if volumes are high and storage is for any length of time. Here at InBond, we see this time and time again through late Summer and into Autumn when retailers look to consolidate stock ahead of Christmas. They won’t see the revenue again until December/January so paying the duty on top of development and order costs does not make sense. As an example, no family Christmas would be complete without the arrival of yet another doll! However, the everyday consumer is unlikely to appreciate that this item has (if imported from outside of the EU) been the subject of duty charged at 5.2%. When you consider quite how popular this particular item is at Christmas, stock piling in order to satisfy this seasonal demand is a costly business – especially if the use of a bonded warehouse has not been employed.

So often, we come across businesses that have expanded because of their good product ranges, yet their supply chain knowledge is holding them back. This is where warehousing and logistics specialists can really add value.

To find out more about our services and how we could assist in the smooth running of your business, please email us in the first instance ( or visit our website: