Surety Bonds for the Logistics Industry
Logistics and supply chain management is concerned with the management of the flow of goods and information through the value chain from materials acquisition to final consumption. More simply it has been described as getting the right product, in the right quantity, of the right quality, in the right place, at the right time, for the right customer at the right cost. Logistics companies provide many of the functions; customer relationship management, forecasting, inventory management, purchasing management, warehouse management, information technology, and transport management.
Most logistic companies operate comprehensive warehousing, distribution, and freight forwarding network. As many of the products distributed or stored are dutiable Revenue or HM Revenue & Customs require logistics companies to maintain at least one of the following, this is where Surety Bonds can assist.
Surety Bonds for the Logistics Industry:
Customs Bonded Warehouse (Tax Warehouse Bond): A Bonded Warehouse is a customs-controlled warehouse or secured area, where dutiable (imported) goods are retained until such time that the duty owed on the goods is paid. A Tax Warehouse Bond is a Revenue & Customs Bond required by Revenue & Customs for bonded warehouses and goods held therein. It acts as security to ensure that the Government receives payment for duties and taxes on goods held which are dutiable.
A Duty Deferment Guarantee: Just as the Tax Warehouse Bond, a Duty Deferment Guarantee is a Revenue & Customs Bond which acts as a guarantee to Revenue and Customs for the payment of duty and taxes on imported goods. The difference being, a deferred payment facility is an authorization that allows traders to defer payment of duties and taxes, these include customs, VAT at import, excise, and VRT. This allows a trader to pay the charges due by direct debit in the following month.
In all instances, lodgement of a guarantee and compliance with the conditions of the authorization is required. The authorization allows the approved trader to pay the duties/taxes due by direct debit on a date in the month following the transactions. Excise Traders operating from a warehouse must operate on a deferred basis only.
With vast experience and knowledge of Revenue & Customs legislative requirements, Surety Bonds can service your bonding requirements without delay. Contact our team of surety specialists and see how we can help you.