When investing in the purchase of new heavy machinery, the availability of grants, interest rates and other economic factors may be significant in the timing of the decision, particularly if the investment is large and the payment of import duties and VAT becomes a considerable figure.
Often, the purchase of the machine can be funded using grants and loans which can be spread over manageable instalments. However, the payment of VAT and import duty is immediately payable in a lump sum. Using a bonded warehousing facility means that the machine can be purchased whilst funding is available and interest rates are favourable, but the payment of VAT and duty can be deferred until the machine is installed.
What is bonded warehousing?
By definition a bonded warehouse is a secure space, where goods liable to import duty or Value Added Tax (VAT) are stored, for a period of time until the goods are ready to be sold or moved to a new location.
This method of storage has obvious benefits for sellers who import and sell goods liable to these charges. By using our HMRC approved facility, we can help our clients defer payment of import duty and VAT on their machinery and equipment.
Key benefits of using Merritts bonded warehouse facility
As an approved HMRC bonded warehouse, Merritts must adhere to the following requirements:
Our 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 10m. Our site is surrounded by 2.4m palisade fencing and CCTV is in operation.
If you would like to make a bonded storage enquiry please contact a member of our team on 0800 046 9840.
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.
One of our key strengths is that we’re centrally located in the Midlands, conveniently close to the M1, giving us and our customers quick access to major routes North, South, East and West. Our secure facilities offer 150,000sqft of internal storage space, with another 80,000sqft external storage space for items that are not weather sensitive.
All of our warehouses are heated, equipped with overhead cranes that can lift up to 20 Tonnes, allow storage for items up to 10m in height and are protected with state of the art security systems. All of which is managed by our skilled warehouse team.
We have customers come to us looking for a variety of storage solutions, so we often tailor our services to suit each individual need. For instance, energy engineering firm Doosan Babcock needed to store some sensitive items that required regular maintenance and a permanent power supply to maintain correct temperature, humidity and performance. By closely following instructions our skilled team were able to fulfil all the manufacturer’s requirements for safely storing the equipment.
How short and long term storage these are some of the reasons why businesses choose to store their equipment with us:
Customs bonded warehousing
Our facilities are also popular with importers and exporters. Merritt’s premises are HMRC approved as a customs bonded warehouse facility, which means we can help our customers defer payment of import duty and VAT on their machinery and equipment.
These are the key benefits of our customs bonded warehousing facility:
Rates start from £0.10 per square foot per week (£1.09 per square metre per week), which is inclusive of buildings insurance, rates, light, heat and power in the area dependent on use. Find out more about our storage services.
Get in touch for a quote on storage.
(NB Our customs bonded warehouse is approved for ‘dry’ status only. We do not have a ‘wet’ licence and therefore cannot process enquiries relating to the storage of alcohol, fuel or cigarettes.)
Every year Merritts’ Big Machine Movers handle over 100,000 Tonnes of precision engineered machinery, moving it from A to B in the safest and most efficient way possible. Because that’s a mind-boggling figure to get your head around we’ve created this infographic of comparatively huge items to illustrate just how much all those big machine moves can add up.