All You Need to Know: Birch’s HMRC Bonded Warehouse Status

Everything You Need to Know About Birch’s HMRC Bonded Warehouse Status

For high-value vehicles, few decisions matter more than where and how they are stored. At Birch, our clients trust us not only with the security and preservation of their cars but also with their financial efficiency. That’s where our HMRC bonded warehouse status makes a real difference.

What is a Bonded Warehouse?

Warehouse bonded status means the facility is approved by customs authorities to store imported goods without immediate payment of import duties or VAT; payment is deferred until the goods are released into the local market or exported. Goods in a bonded warehouse are under customs control, typically secured and documented, and can be held for extended periods (often several years) while duties are postponed. For Birch customers, that means if you bring a car into the UK for storage, you don’t need to pay import taxes upfront. VAT and duty are only payable if the car is later registered for permanent UK use or sold into the domestic market. If the car is re-exported abroad, those charges are never due.

Myth vs Fact: Taking Cars To Shows

Myth: “If a car is in a bonded warehouse, it can't be taken out for a show or display without paying the taxes.”

Fact: It is possible to take a car from a bonded warehouse to an authorised event such as a concours, exhibition, or motor show without triggering import VAT or duty. The vehicle remains under HMRC’s customs control, and the taxes are still suspended. VAT and duty only become payable if you choose to release the car into free circulation — for example, registering it for permanent UK road use or selling it into the UK market.

It is certainly possible for a vehicle to leave a bonded facility in certain circumstances, but its worth noting that there are necessary procedures for this to happen.

Zaak explains. "There must be authorisation from the HMRC based on the nature of the movement, the location and the reason for its exit, that all must be documented and kept within a file that's attached to the vehicle whilst it remains in bond. A vehicle must also make its return to the same bonded facility after the temporary movement."

Can I Maintain or Repair My Car While It's In A Bonded Warehouse?

Yes. Vehicles in bonded storage can be taken for servicing, repairs, or detailing while still retaining their customs status. This ensures your car can be preserved, recommissioned, or maintained in perfect condition without incurring tax liabilities. The only limitation is that work must not fundamentally change the car into something else (for example, a rebuild that alters its customs classification). Routine servicing, cosmetic restoration, and mechanical repairs are all fully permitted.

At Birch, we manage the paperwork and movements so you can focus on the car itself.

Your Questions About Bonded Warehousing, Answered

What happens if I sell the car while it’s in bonded storage?

If the buyer is overseas, the car can be exported directly without any UK VAT or duty. If the car is to be sold into the UK market, taxes are payable when the car is released for road use.

Can the car be re-exported?

Yes. That’s one of the biggest advantages of bonded storage — if the car is shipped out of the UK from a bonded warehouse, no UK import VAT or duty is ever payable as long as the car has remained under UK bond during its time there.

Can my car be exercised or moved while bonded?

Absolutely. Cars can be taken for shows, concours events, photography, repairs, or maintenance under bonded status, with all movements logged and compliant under HMRC rules - one of these being it returns to its original bonded warehouse in which it temporarily left.

What about insurance while the car is in bonded storage?

Birch can assist in providing specialist insurance that covers vehicles while bonded, whether stored, transported for events, or undergoing maintenance.

‍What if I want to release my car for UK use?

At the point you decide to register or sell your car for permanent UK use, VAT and duty must be paid. Birch liaises directly with HMRC to ensure the process is handled quickly and correctly.

Why Birch?

Birch isn’t just a storage facility — we’re a fully HMRC-approved bonded warehouse designed around high-value and collector cars.

That means:

• Your vehicles are kept in secure, climate-monitored storage.
• Import taxes are deferred or avoided entirely, depending on your plans.
• Every movement, from concours to recommissioning, is managed under strict HMRC compliance.
• You gain maximum flexibility in how and when you decide to use or sell your cars.
  

For collectors and investors alike, bonded storage isn’t just about convenience — it’s about control. At Birch, we give you both.