Customs Warehouse

Special Procedures

Customs warehouse is used specifically for storage.

This enables an aircraft or yacht to be placed in storage in the UK without being liable to pay import VAT.

For many owners and brokers, customs can feel like a maze of rules, taxes and paperwork. Getting it wrong can be expensive.

A customs warehouse is one of the most effective tools available for reducing risk and creating flexibility during an aircraft transaction.

Put simply, a customs warehouse is a location where customs duties and import VAT are suspended while an asset is stored there.

Think of it as a holding area where an aircraft can wait safely while a transaction is completed. The aircraft remains under customs control, but the potential tax and duty liabilities are effectively put on pause until the aircraft leaves the warehouse and reaches its intended destination.

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What are the advantages of a customs warehouse?

  • For sellers, it provides a secure and recognised framework that helps derisk the sale.
  • For buyers, it offers more flexibility around registration, inspections and delivery planning.
  • Brokers benefit from being able to present aircraft to potential purchasers in a tax neutral environment.
  • Lawyers increasingly recognise the value a customs warehouse can bring and often include it within transaction requirements.

The key advantages are the significant time savings and the reduced VAT exposure for both parties, helping to derisk the transaction for buyer and seller alike.

Aircraft transactions rarely run exactly to schedule. Pre purchase inspections, registration changes, legal documentation and financing arrangements can all create delays.

When an aircraft is placed into a customs warehouse, these activities can often be completed without the pressure of immediate customs consequences.

A customs warehouse is like a departure lounge for a high value asset transaction. The aircraft is ready, the parties are preparing for departure, but no one is forced to rush through the final checks before everything is in order.

It gives transactions breathing space so that important details can be handled correctly.

There are practical advantages too. Aircraft can remain at suitable maintenance facilities rather than being repositioned to remote tax neutral locations. This reduces unnecessary flights, lowers costs and makes the process more efficient.

In the UK, aircraft can also be sold within a customs warehouse without VAT being charged on the sale, creating additional flexibility for international transactions.

Like many customs solutions, the rules are highly technical. Not every aircraft or yacht qualifies and there are restrictions on what work can be carried out while an aircraft is under the procedure. This is why expert advice matters. After all, you would not let someone who has read a book on brain surgery operate on your brain.

The same principle applies when navigating customs procedures for a multimillion pound aircraft. The right advice can help protect the transaction, minimise risk and ensure compliance from start to finish.

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Whether you are acquiring a new asset, reviewing an existing ownership entity or planning for the future, our team is here to provide clear, confident guidance. A short call is usually enough to identify the right route.

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