What is Customs Warehousing?

The customs warehouse is a warehouse where imported goods can be stored without having to pay the respective taxes. This, while its final destination is not defined, either outside or inside the country where the merchandise has arrived.

This type of warehouse is then an instrument that allows merchandise to be stored while the importer or operator does not enter it into the country. In that time interval, you will not have to pay any rights or go through an administrative procedure.

This tool can be used, for example, by intermediary companies that wish to maintain stock in a territory from where they can transport it to another country. Therefore, it would not make sense for them to pay import duty or Value Added Tax (VAT) while they do not leave the warehouse.

It should be noted that the customs warehouse has an unlimited time character, that is, there is no deadline to withdraw the merchandise. However, in the case of agricultural products, because they are perishable, they represent an exception. For this reason, they give a maximum period of six months for product withdrawal.

Ways to Finish Customs Warehousing

There are three ways to finish the customs warehouse:

  • Dispatch for free circulation: The good enters a country, where customs duties will be paid, but the final sale will take place in another country where VAT will have to be paid.
  • Dispatch for consumption: The imported merchandise enters the country and is sold in the same country, where customs duties and VAT will be paid.
  • Export: The merchandise is exported outside the US, so you would not pay any duty or tax.

What Types are There?

There are two types of deposits:

  • Public Customs Warehouses. The owner of the same is the “depository” and is characterized by the fact that any person (depositor) can introduce merchandise into them, in turn, depending on the responsibility, there are two subtypes:
    • Type 1. The responsibility can be both the depositary and the depositor.
    • Type 2. The responsibility falls on the depositor.
  • Private Customs Warehouses. It differs from the previous one in that only the “depository” owner can deposit merchandise.

In addition to the types mentioned, the Customs Authority may exceptionally authorize the inclusion of goods under customs warehousing in a place that does not have the status of customs warehousing.

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