A facility in Europe authorized by customs authorities to store goods without payment of duties and taxes until they are released for consumption, export, or re-export. This arrangement provides businesses with a secure location to hold merchandise while deferring these payments, offering significant cash flow advantages. For instance, a company importing electronics into the European Union might utilize such a facility to store its products until they are sold to distributors in different member states, only paying duties when the goods actually enter a specific country’s market.
The existence of these warehouses facilitates international trade by reducing upfront costs and offering flexibility in distribution strategies. Historically, they have played a crucial role in supply chain management, particularly for businesses involved in importing, exporting, and transit operations. Their use can lead to improved competitiveness, reduced warehousing costs through economies of scale, and simplified customs procedures.
