Partial withdrawal means taking the quantity you need rather than withdrawing all the goods in the warehouse at once, and paying duty only on that part. The remainder stays in the warehouse and no new entry procedure is needed.
On high-tonnage shipments this is the practice that eases cash flow the most.
A concrete example
Think of a 500-tonne consignment of steel coil. If you import all of it, the customs duty and VAT on 500 tonnes are paid up front.
If you take it into the warehouse and withdraw the 80 tonnes you process each month, you pay duty on 80 tonnes only. The remaining 420 tonnes wait in the warehouse and no duty arises on them.
How the process works
- The quantity to be withdrawn is decided and notified to the operator
- The customs broker files an import declaration for that quantity
- The duty is paid and customs permits the release
- The warehouse releases the goods and a weighing and counting report is drawn up
- The balance is entered in the register and the reconciliation is shared
Why tracking the balance is critical
After every partial withdrawal the balance in the warehouse and the balance in the records must match exactly. The smallest difference grows and comes back at you at the next withdrawal or count.
A serious operator shares the balance reconciliation in writing at every withdrawal; that document is also useful to your customs broker.
Which products it is used for most
Partial withdrawal stands out for products with a high unit value and a large tonnage: steel items such as coil, rebar, billet, sections and pipe are the typical examples.
The same logic applies to machine parts, chemicals and packaged consumer goods.