Differences between Customs Warehouse and Non-Customs Warehouse

At the CST Group, we have recently added the Customs Warehouse to our already available Customs Agency with an available area of almost 2000 square meters covered. With this, we intend to expand our portfolio and improve our customer service with new options.

However, there are various types of warehouses which, due to some similarities between them, may lead to confusion, even though their specific functions are different and they have particularities that distinguish them. Among them, the Customs Warehouse (CW) and the Non-Customs Warehouse (NCW) stand out.

The advantages of Customs Warehousing

The Customs Warehouse is a logistical warehouse that allows Community companies to store non-EU goods for an unlimited period of time. This allows to supply your demand in a faster way, serving as a strategic point.

In addition, it allows for the partial removal of goods so that it is not necessary to remove all the goods at once, and avoids high storage costs in the port terminals.

For example, a company that buys 20 rolls of paper in Turkey but does not yet have a closed sale in Spain and, moreover, does not have enough stock, could benefit from linking it to the CW. When the time comes to withdraw 10 of them, they are simply unlinked, leaving the remaining ones still linked to the warehouse.

On the other hand, it is recommended for companies whose turnover is medium or low, since it allows them to defer payment of import tax, as well as any applicable tariffs. These do not have to be brought forward until the goods have an exact destination, allowing the sales tax to be passed on to the buyers in full or in part.

Continuing with the previous example, it would not be until that moment that the tariff and corresponding VAT is paid for these units, and not for their totality.

Furthermore, let us suppose that the seller manages to sell the 10 remaining rolls to a Spanish company one year later. By means of this internal sale, the rest of the goods would be unlinked and the final recipient would be the one to pay the tax.

It is important to emphasize that this figure is sometimes confused with the Temporary Customs Warehouse. Unlike the previous one, it can only be used for a maximum of 90 days.

Particularities of the Non-Customs Warehouse

The Non-Customs Warehouse is, on the other hand, a logistics warehouse from which Spanish companies can benefit or those that are not Spanish but have a Spanish tax number.

Among its main advantages is the introduction of import goods without paying VAT, both at the entry and exit of the goods, so in this case both the importer and the buyer benefit.

Again, the time of stay of the goods is unlimited and allows for partial departures.

For example, let’s say a Spanish company buys toys and needs a warehouse. When the merchandise arrives in the country, it is linked to a NCW, bearing the tariff, but not the VAT.

Subsequently, it sells this merchandise to a Portuguese firm, which is then unlinked from the warehouse and immediately removed to another EU country. In this case, the tax is suspended until the buyer settles it in its country.

Therefore, the Spanish importer has covered the storage needs and has not borne VAT because the goods were not consumed in Spain.

We reinforce our offer with the Customs Warehouse

Once again, as an international goods transport company, we seek to improve the flexibility of our customers’ goods transactions, favoring transfers and providing integrated logistics solutions.

Having doubts about which service is best for you? Contact us!

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