By Richie Lin    Photo：CANVA

According to a recent statistic, the EU’s imports in 2024 are reported as USD 2.64 trillion. Trading Economics+1 and the US’s imports in 2024 are reported as USD 3.36 trillion. Whereas the USA remains the single largest market in the world, the EU has acquired more attentions after Sino-America trade conflicts since 2018. And under the influence of the lockdowns caused by Covid-19, people began to realize that no companies can live by only one supply chain or only one market. Simply to say, never put eggs in the same basket. Therefore, many Asian companies or even the USA companies has put resources to expand the markets in the EU. However, in the beginning, small and medium-sized companies didn’t have plenty of resources to set up companies in the EU. This is the time to use bonded warehouse in Netherlands. Of course, there are several EU countries which also provide bonded warehouses services. But the bonded warehouses in Netherlands are still the most efficient because of the position of Rotterdam port and the VAT deferment in Netherlands.

1. Bonded Warehouses in Rotterdam or Amsterdam — Overview

Definition

A bonded warehouse in the Netherlands is a customs-supervised storage facility where non-Union goods can be stored without paying import duties or VAT until they are released into free circulation within the EU.

Key Features

• Deferred duty & VAT payment – duties, VAT, and excise are suspended while goods remain in bond.
• Re-export flexibility – goods can be re-exported outside the EU without incurring EU import taxes.
• Ideal for multi-market distribution – Netherlands serve as an EU gateway for goods from Asia destined for various EU countries.
• Simplified transit – goods can move under customs transit (T1) from port to warehouse or from warehouse to another EU country’s customs point.

Strategic Advantages

• Cash-flow optimization: No upfront import VAT or duties.
• 4PL confidentiality: Third-party logistics operator can consolidate multiple customers under one bonded facility while protecting client identities.
• Flexibility: Split shipments, relabel, repackage, or defer final import decisions until sales orders are received.

2. B2B Distribution via Bonded Warehouse

Flow Example

1. Import: Goods arrive at Port of Rotterdam or Amsterdam, then issue T1 to transit goods to bonded warehouses.
2. Storage: Goods stored in the warehouses without paying duty and vat under customs supervision.
3. Order Allocation: Once a B2B customer within the EU confirms purchase, goods will be picked up from inventory and packed to be ready for loading.
4. Customs-released: Non-EU companies can appoint a limited fiscal representative in the Netherlands to declare customs in Netherlands and apply vat-deferment ((Article 23 license in NL) to transfer the vat burden to their EU end customers. Or they can simply choose to let bonded warehouse issue T1 document to transfer the customs to the countries where their end customers locate.
5. Non-EU Export: Goods sold to non-EU buyers can be exported directly from the bonded warehouses. No duty or vat will be applied.

3. B to C businesses and FBA (Fulfillment by Amazon):

Flow example if you store goods in the Netherlands and ship to direct customers (B to C) and Amazon Fulfillment Centers in the EU:
1. Import: Goods arrive at Port of Rotterdam or Amsterdam, then issue T1 to transit goods to bonded warehouses.

2. Storage: Goods stored in the warehouses without paying duty and vat under customs supervision.

3. Order Allocation: Once a B2C customer or Amazon warehouse within the EU confirms purchase, goods will be picked up from inventory and packed to be ready for loading. If the destination is Amazon warehouse, bonded warehouse colleagues will check if the goods are attached to Amazon Labels.

4. Customs-released: Non-EU companies can appoint a general fiscal representative to declare customs in Netherlands and Pay the VAT to Netherlands government before leaving the bonded warehouse.

5. Difference between LFR and GFR:
Limited Fiscal Representative (LFR) acts only for specific, limited transactions — usually import-related B2B transactions. Often used when goods are imported into the EU and then sold to other EU VAT-registered businesses. General Fiscal Representative (GFR) takes full and ongoing VAT responsibility for a foreign company’s all taxable activities within that EU country. Used when a non-EU company performs regular, domestic B2C sales or online businesses such as Amazon in the EU.

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