Guides / Customs warehousing · Updated 30 September 2026

Customs warehousing in the UK: storing imports with duty and VAT suspended

Customs warehousing lets UK importers store non-UK goods without paying duty and import VAT until the goods are released for sale in the UK, or never, if they are re-exported.

This guide is also available in Polish.

Most imports into the UK trigger customs duty and import VAT at the moment the goods are cleared. For a trader who will not sell the stock for weeks or months, or who may ship part of it on to another country, that means paying tax on goods that are still sitting on a shelf. Customs warehousing is the special procedure designed for exactly this situation. This guide explains how it works, the difference between public and private warehouses, what the authorisation involves and how goods can leave the procedure.

What customs warehousing actually does

Customs warehousing lets you store goods brought in from outside the UK while the payment of import charges is put on hold. According to HMRC guidance, you will not need to pay duty and import VAT on goods that you either re-export or move to another customs procedure. Excise duty on eligible goods is also suspended while they remain under the procedure.

The key idea is suspension rather than exemption. If the goods are eventually sold on the UK market, the charges become due at that point. If they leave the UK instead, the UK charges may never become payable at all.

Public and private customs warehouses

HMRC recognises two broad kinds of customs warehouse:

Public warehouse – run by a warehousekeeper who stores goods belonging to other people (depositors). This is the usual route for a trader who does not want to hold an authorisation of their own and prefers to use a logistics provider that already operates one.
Private warehouse – the warehousekeeper and the depositor are the same person, so the business stores only its own goods under its own authorisation.

In both cases the warehousekeeper must hold an authorisation from HMRC. For a first-time importer, checking whether a public warehouse near the port of arrival can take the goods is often quicker than applying for a private authorisation.

Getting authorised to operate a warehouse

If you want to run your own customs warehouse, gov.uk sets out the main conditions. You must be established in the UK and hold an EORI number. HMRC also expects:

a good compliance record in dealing with customs;
financial stability and a business reason for operating the warehouse;
the ability to keep inventory records and to work to health and safety standards;
customs declarations made either by you or by an agent you employ;
a guarantee covering customs duty and VAT, unless you are an Authorised Economic Operator or otherwise meet HMRC's conditions for not needing one.

The application asks for commodity codes of the goods (at least six digits), details of your accounting system, the addresses of the storage facilities and written procedures explaining what happens to goods when they enter and leave the warehouse. HMRC recommends applying at least two months before you want to start, and it may ask for more information or visit the site before deciding.

Moving goods into the warehouse

Goods are entered into the procedure with a customs declaration on CDS, using the appropriate procedure code (see our guide to customs procedure codes). HMRC guidance states that imported goods must arrive at the named warehouse within 5 working days of being cleared by customs, so the haulage from the port needs to be planned before the ship or lorry arrives.

What you can do with goods in storage

A customs warehouse is for storage, not manufacturing. Only the so-called usual forms of handling are allowed (HMRC has a separate page on which simple operations qualify). If you need to process the goods beyond that, HMRC directs you to inward processing instead.

The warehousekeeper must keep accurate stock records that show, in real time, which goods are held under the procedure. Goods of different customs status can be stored together only if their status can be identified at all times. Taking goods out of the warehouse temporarily requires HMRC's permission first.

How goods leave the procedure

The procedure ends when goods are moved on under one of the routes HMRC allows:

Route out	What happens to duty and import VAT
Release for free circulation in the UK	Charges become payable, based on the quantity, value and tariff classification of the goods at that time
Re-export	UK duty and import VAT are not paid
Another customs procedure (for example inward processing)	Charges stay suspended under the new procedure's rules
Transfer to another customs warehouse	Suspension continues
Supply to duty-free shops or as ship and aircraft stores	Handled under the specific rules for those supplies

HMRC also notes that retail sales directly from a customs warehouse are restricted to travellers and diplomatic personnel, so it is not a way to sell tax-free to ordinary UK customers.

For a release into free circulation, the importer is the one who pays. Who carries the liability for the declaration depends on how your agent acts: under direct representation the importer remains liable, while under indirect representation the agent is jointly liable with the importer.

When customs warehousing helps cash flow

The benefit is working capital. Because the charges are only due when goods are released into free circulation, the money you would otherwise pay at the border stays in the business while the stock waits. It tends to make most sense when:

you import in bulk but sell gradually, so paying all import charges up front would tie up cash for a long time;
you do not yet know whether a consignment will be sold in the UK or sent on to another market;
you trade goods that carry excise duty, where the suspended amount can be substantial;
you want to hold stock close to UK customers without committing to the tax until an order is confirmed.

It makes less sense for small, one-off shipments that will be sold straight away. The administration – stock records, declarations on entry and exit, possibly a guarantee – has its own cost, and the time the goods spend in storage has to justify it. Our guide to whether you need a broker can help you decide how much of this to handle yourself.

Practical checklist before you start

Confirm your EORI number and the commodity codes of the goods.
Decide between a public warehouse (use someone else's authorisation) and a private one (apply for your own, ideally two months ahead).
Arrange transport so goods reach the warehouse within 5 working days of clearance.
Agree who makes the entry and exit declarations and on what representation basis.
Plan the exit route for each batch: UK sale, re-export or another procedure.

If you would like a longer look at how duty and VAT suspension works in practice, see this overview of suspending duty in UK warehouses.

Related guides

Want more on duty suspension?

Plutos is a UK–Poland customs information site run by the same team as Easy Clearance, a UK–EU customs clearance agency handling import/export declarations, T1/T2 transit and UK–Poland removals.

Read the Plutos guide

Sources

General information, not legal, tax or customs advice. Rules change; confirm current requirements on gov.uk or with a registered agent before you ship.