The first advantage is financial, as the beneficiaries do not pay the duties and taxes normally levied on entry into the country when the goods are re-exported.
Payment is deferred for businesses; thus, scheduled when the goods are released for consumption where appropriate. The second advantage is economic or commercial, because these regimes serve the three essential functions of businesses:
• Storage: customs warehousing regime;
• Use: temporary admission;
• Processing: inward processing, processing under customs control and outward processing regime.
Warehousing means that goods are always in stock and can be used as and when the company needs them. Duties and taxes are only paid when the goods leave the warehouse. Moreover, should the goods be eventually exported, the company will be subject to customs duties and VAT;
The use function, under certain circumstances, allows a company to dispose of goods that do not necessarily owned, but needed for business (testing, equipment development, exhibition, etc.). In case the goods is re-exported, no duties are paid (with some exceptions).
Processing allows a company to:
• Import third-party goods for processing into finished products for re-export (inward-processing arrangements). • Temporarily export goods for processing, and benefit from partial exemption from duties and taxes when the compensating products are re-imported.
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