Bonded Warehouse vs Direct Shipping: The Real Cost for Indian Alcohol Exporters
Every Indian exporter who has shipped a container of spirits into the UK has, at some point, watched working capital disappear into a customs queue — and wondered if there was a smarter way.
There is. But the answer lies in understanding the full financial and operational structure behind each shipping model.
The Operational Reality Nobody Talks About
Alcohol export to the UK from India is not just freight movement.
The moment goods land, you face:
- UK customs clearance procedures
- Customs declarations for UK alcohol
- Excise duty settlement
- VAT exposure
- Duty stamp application for UK spirits
- Documentation compliance
If any detail is incorrect, containers sit at port. Demurrage accumulates. Capital is blocked.
Indian distilleries, IMFL manufacturers, breweries, and wine exporters typically choose between two routes:
- Direct Shipping – Goods arrive, duty and VAT paid immediately, then released to market.
- Bonded Warehousing in London – Goods enter under duty suspension and are stored until released.
The cost difference is significant.
Where the Money Actually Goes
Direct Shipping
- Full UK alcohol duty paid on arrival
- VAT paid upfront
- Working capital locked immediately
- Higher exposure to customs delays
- Compliance risk managed remotely
- Limited flexibility to test the market
Bonded Warehouse London Model
- Duty suspended warehouse UK structure
- Excise paid only when goods are sold
- Working capital preserved
- Centralised customs declarations
- Import export documentation UK handled professionally
- Duty stamp application managed in-house
- Flexible stock release
This is not just operational convenience.
It is a financial restructuring of your export model.
The Hidden Cost of Direct Shipping
UK excise duty on spirits exceeds £28 per litre of pure alcohol. On a full container, that is a substantial upfront outlay — before revenue begins.
Add:
- Freight forwarding coordination
- Port storage fees
- Possible compliance queries
- Delays in customs clearance
Each day adds cost.
For new entrants — whether wine export from India to UK or spirits export UK bonded warehouse strategy — this risk can damage profitability before the brand gains traction.
How Bonded Warehousing Changes the Model
A bonded warehouse in London operates under HMRC authorisation. Goods enter in a duty-suspended state.
This allows exporters to:
- Defer excise duty legally
- Protect working capital
- Release stock in phases
- Consolidate beverage logistics UK from India
- Store under temperature controlled warehousing UK
- Maintain compliance without UK entity overhead
Instead of funding tax before sales, duty is funded by actual revenue.
Where Purland House Fits
Purland House Ltd operates an HMRC-approved bonded warehouse in London designed for alcohol and beverage trade.
We support:
- UK customs clearance for Indian exporters
- Customs declarations UK alcohol
- Import export documentation UK
- Duty stamp application UK spirits
- Secure bonded storage
- Structured UK distribution support
For Indian liquor export to UK, beer exporters, wineries, bottling units, and distributors, this removes friction from market entry.
The Bottom Line
Direct shipping works for high-volume, established brands.
But for market entry, cash-flow discipline, and controlled UK expansion, bonded warehousing consistently provides stronger financial logic.
The real cost of direct shipping is not freight.
It is capital lock-in, compliance exposure, and operational delay.
A bonded warehouse in London removes all three.
Purland House Ltd is built for that reality.
👉 Contact us today and enter the UK market with clarity, control, and confidence.
About the author: Purland House Ltd — specialists in HMRC bonded warehousing, customs compliance, and alcohol logistics in London.
Published on: 17 Feb 2026
