Normally, when goods are imported into the free circulation of the European Union, Value Added Tax (VAT) and customs duties should be paid before the goods can be stored, waiting to be sold.
However, it is also possible to store the goods in a customs bonded warehouse, which results in a postponement for an indefinite period of customs duty/VAT at import. In this case, customs duties and VAT at import only need to be paid when the goods are actually imported into the free circulation of the EU.
If the client is located in a non-EU country, the goods can be transported under customs bond from the warehouse to the country where the buyer is located. Then, customs duties and VAT at import are subsequently paid in the country of destination.
Because the majority of the customs bonded warehouses in the Netherlands are administratively controlled, the number of physical checks by the Customs Department is reduced dramatically.
For example, the import can be carried out via EDI or via a diskette. Supplying customs with information this way allows them to do more detailed checks on the clearances as well as the mutations of the inventory. Physical checks are carried out at random and basically each logistics service provider is checked extensively only once every three years.
Under this type of scenario, it is possible to operate a European Distribution Center 24 hours a day, 7 days a week, 365 days a year.
While foreign companies can apply for a license to operate their own customs bonded warehouse, many companies outsource this type of storage to a logistics service provider.
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