Bike Sales: The Benefits of Customs Warehousing and VAT Warehousing
In the competitive landscape of international trade, companies that are able to optimize their logistics processes through the advantages of customs warehousing and VAT warehousing gain a significant edge.
In this case study, we analyze the experience of two companies: a Spanish firm specializing in B2C sales and an Italian company focused on the B2B market—both operating in the bicycle industry. With suppliers based in China, these companies found an effective solution by relying on the services of MWM Srl.
MWM provides a comprehensive transport service from China to Italy and manages all customs operations through its own bonded warehouse. This enables partial customs clearance of goods, greatly simplifying the logistics operations for both companies.
How Customs Warehousing Works
MWM’s bonded warehouse, certified with AEO Full authorization, allows the postponement of customs duties and VAT payments until the actual release of goods for free circulation. The goods are stored in a customs-free zone, and once the necessary import procedures are completed, they are sent to companies that handle the bicycle assembly process. The assembled bikes are then returned to MWM’s warehouse, ready for shipment to final customers, both private and corporate.
Benefits for Companies
Improved Cash Flow
One of the main benefits of using a customs warehouse is the enhancement of cash flow. Thanks to this solution, companies don’t have to pay duties and VAT upon entry into the warehouse – these costs are incurred only when the goods are released for free circulation. Additionally, the use of the VAT warehouse allows the deferral of VAT payment until the sale to the final customer. This strategy helps businesses maintain liquidity and improve financial management.
Proximity to Sales Markets
Another key advantage -especially relevant for the Spanish company – is the ability to maintain inventory in Italy. This brings the company closer to its customers, improving delivery efficiency and increasing customer satisfaction. Shorter shipping times translate into greater market competitiveness and potential growth in sales.
Flexibility in Logistics Operations
MWM’s solutions also provide significant flexibility in logistics operations. Orders can be prepared based on specific customer needs—whether that means pallets for B2B clients or individual bicycles for B2C customers. MWM’s in-house team handles the picking and shipping, ensuring a tailored and efficient service.
Customs Warehousing and VAT Warehousing: A Commercial Advantage
Using MWM’s customs and VAT warehouses is a winning strategy for companies in the bicycle industry. The benefits in terms of cash flow, proximity to key markets, and logistics flexibility offer both Spanish and Italian companies a strong improvement in their commercial operations. This collaboration demonstrates how efficient management of logistics and customs procedures can provide a significant competitive advantage in the global marketplace.
