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In just under a month the UK will have exited from the EU, regardless of whether there a is no-deal Brexit or a negotiated exit. Once the UK has left the European Union all imports and exports will be subject to duty and this will have an immense impact. Particularly for businesses that are importing or exporting heavy machinery, as these transactions usually represent a significant figure which means the duty payable will also be quite sizeable.
STORING HEAVY MACHINERY IN BONDED WAREHOUSING HELPS MANAGE CASHFLOW
If heavy machinery is imported into the UK, and then transported for storage into a bonded warehouse facility, it means that the tax duties do not need to be paid to the UK authorities until the machine is removed from storage for installation at the manufacturing facility. This can have a huge impact on cashflow as you will be able to plan your company finances accordingly.
Using a bonded warehousing facility is therefore a great way to buy machinery when preferential rates and grants are available, but defer payment of duties to preserve cash in your business. We provide solutions for production machinery manufacturers, machinery agents & distributors, and product manufacturers.
In addition, the legislative requirements for importing or exporting the heavy machinery will be dealt with by Merritts as your bonded warehouse storage provider.
In this previously published article we outlined the impact of Brexit on heavy machinery moves in relation to tariffs and duties, health & safety legislation, transport costs, border delays and asset registers which may also help you plan in advance.
Key benefits of using Merritts bonded warehouse facility
As the Brexit deadline approaches, the additional benefits of using a bonded warehouse facility include:
- The opportunity for heavy machinery dealers to purchase stock without paying import duty & VAT until sold or ready to install.
- Storing your goods in our bonded warehouse means you will not have to pay any import-duty on products you export, saving both time and money. This means a business can avoid paying duty twice, providing typical savings of around 25-30%.
- Greater flexibility for supplying ‘quick turnaround’ machine deliveries to clients, therefore improving customer service.
- Our Midlands location is convenient for the distribution of machinery throughout the UK.
- Merritts have the in house ability to lift, transport and install machinery as part of a comprehensive service package.
- Ability to take advantage of favourable exchange rates.
- If you are unable to sell your machinery domestically, you can sell it for re-export without having to worry about the duties which would already have been paid.
The Merritts HMRC approved warehouse has over 80,000 square feet of internal storage space which is fitted with high and low bay lighting, overhead craneage for the handling of goods up to 10Te in weight and offer eaves heights of up to 8m. Our site is surrounded by 2.4m palisade fencing and CCTV is in operation.
In addition to storage solutions, if you are buying or selling heavy machinery our central UK location means we are ideally placed to offer a full turn-key machine moving solution. This can include collection from docks, onward delivery and transport, and machine installation and removal services.
Please click here to view our case study, where a customer utilised the benefits of our bonded warehousing facility:
Please note, as a heavy machinery moving specialist, our customs bonded warehouse is only approved for ‘dry’ status for the storage of equipment and machinery. We do not have a ‘wet’ licence and are therefore not licenced to store goods such as alcohol, fuel or cigarettes.
If you would like to enquire about our bonded storage solutions please get in touch or complete the enquiry form.
December 9, 2020 by James Merritt
