Bonded warehousing offers retailers a viable solution to Brexit red tape and increased demand

Bonded warehousing offers retailers a viable solution to Brexit red tape and increased demand

With global demand for warehousing space increasing due to Brexit, Covid-19 and the growing trend for consumer goods bought to the doors of the UK population, retailers are seeking new alternatives to UK warehousing space with bonded warehousing fast becoming a viable option.

Many UK based retailers including Gymshark and Temperley London have set up warehousing space and distribution operations in central Europe due to a lack of availability and the procedural red tape created by Brexit here in the UK, with many more set to follow suit.

This has led to a backlash from UK shoppers who are accusing leading brands of taking jobs from workers who have already felt the full force of Covid-19 in recent months and therefore other avenues have been explored including that of bonded warehousing.

Often used as a way of controlling cash flow, bonded warehousing isn’t new to the UK. With bonded warehousing, facilities already present in the UK are used to store imported goods from outside the EU liable to customs duties and/or import VAT without immediately paying import duties.

Once the goods have been consigned and sent out to stores and individuals for delivery, duties and taxes then become due for payment. This approach helps businesses with cash flow and prevents retailers from having to pay two sets of duty on products entering and then leaving the UK.

With many retailers trading here in the UK and across Europe, bonded warehousing has seen an upturn in interest from retailers who are tired of the complex country of origin rules and resulting tariffs, as well as VAT and customs costs.

However, this means additional pressure on an already stretched workforce, with many experts warning that safety should always take propriety over profits in the warehousing industry.

Midland Pallet Trucks, a provider of high-quality lifting equipment including pallet trucks, manual stacker trucks and lift tables, has been supporting the industry throughout the pandemic and is urging those seeking bonded warehousing options to consider their current lift equipment stocks in line with strategic plans for importing and exporting to and from Europe.

“With bonded warehousing seeing a revival in interest over the past few months, warehousing managers need to ensure that they have adequate stocks of good quality, well-maintained lift equipment to help deal with consignments coming from or going to Europe,” said Phil Chesworth, Managing Director of Midland Pallet Trucks.

“Reducing workplace injuries should be a priority regardless of warehousing type and where shipments are headed, so I urge anyone to reassess their stocks now to safeguard staff as the industry prepares for the summer season.”

To find out more about the wide range of electric and semi-electric pallet trucks available from Midland Pallet Trucks, visit