With the constantly changing economic and geopolitical landscape, managing customs duties has become an increasingly important aspect of the tax strategy for internationally operating companies. Rising customs costs due to changes such as Brexit and international sanctions can significantly impact profit margins. For companies importing and exporting goods, it is essential to develop effective strategies to manage and minimize customs duties. At Crowe Peak, we offer comprehensive advisory services in customs duties and warehousing. Want to know more about the benefits? Read below for more information. For immediate practical advice, download our customs guide or contact us.

International trade: Why choose the Netherlands as a hub?

The Netherlands is the perfect location to serve as a trading hub. The country is in the heart of the most densely populated and prosperous region of Europe, allowing access to over 160 million consumers within a 500 km radius. Additionally, the Netherlands boasts the busiest port in the EU and the fourth largest airport in the EU. The Netherlands is also one of the few EU countries that grants companies a VAT deferment license. This means that VAT on imports only needs to be paid during the periodic VAT return, offering a significant cash flow advantage when importing goods from outside the EU. Furthermore, the Dutch tax and customs authorities are generally cooperative. Their approach is informal and open to dialogue, providing upfront certainty regarding tax positions. Finally, Dutch customs warehouses offer a significant advantage for businesses engaged in international trade.

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What are customs warehouses?

Customs warehouses allow companies to defer the payment of VAT and customs duties until the goods are sold and shipped. A customs warehouse is a storage facility where goods can be stored under customs supervision without immediately being subject to import duties and other taxes. These goods can remain in the customs warehouse indefinitely until they are placed under another customs procedure, destroyed, or leave the customs territory of the European Union. During storage, no import duties or other taxes need to be paid on the goods, and compliance with trade policy measures is generally not required. This can provide significant economic benefits.

Key benefits of a customs warehouse:

• Improved cash flow: Customs duties and VAT are only due when goods leave customs control. This means that when a large quantity is imported and stored, the burden of import duties is more evenly distributed, improving cash flow.
• Cost reduction in the supply chain: Goods can be imported and stored in the Netherlands for other non-EU markets without the burden of ‘double duties’. Goods stored in the warehouse retain their origin status.
• Avoiding duty on defective goods: Defective or unsold goods can be destroyed in the warehouse or exported without paying customs duties and import VAT.
• Lower administrative costs: Declarations are made using customs management software, saving on costs at the border.

Download: Guide to customs warehousing in NL

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Customs advice and practical support

Crowe Peak is happy to assist in setting up a customs warehouse in the Netherlands, thereby reducing the cost of doing business in the country and elsewhere in the EU. Since every company has a unique supply chain, the process begins with a thorough assessment of the customs profile. By requesting an assessment of the customs profile, valuable insights are obtained into how a customs warehouse in the Netherlands can improve the business. This proactive step enables well-informed decisions regarding the streamlining of customs procedures, potentially leading to savings. Contact our specialists by filling out the form below.