Tigers “virtual warehouse” circumvents Brexit disruption

A Hong Kong logistics company aims to circumvent Brexit related disruption by storing client’s wares in “virtual warehouses” that “may be physically located between the EU and the UK.” To this end, Tigers Global Logistics has become an Authorized Economic Operator (AEO) in the United Kingdom (UK), and has opened its seventh U.K. office, in Leeds.

“The virtual warehouse means that, while goods may be physically located between the EU and the UK, they will simply appear to be located on different shelves in our system,” explained Shahar Ayash, London-based regional managing director, Europe, Tigers Global Logistics Limited.

Ayash clients could still track their inventory, and that there was “full visibility, inventory control, a single IT integration, a single tariff, and one currency billing.”

Adding an AEO certification grants Tiger lower rates of compliance inspections, a reduction in the number of customs control checks, and simplified documentation for imports and exports, Tigers said.

“The AEO certification is internationally recognized, including in key markets such as China, India, Japan, and the USA, inspiring even greater confidence in businesses worldwide to work with Tigers,” said Ayash. The World Customs Organization (WCO) – backed designation marks traders who voluntarily meet a wide range of criteria work in close cooperation with customs authorities, granting them more oversight to manage and assure their security.

Tigers says that their virtual warehouse will eliminate the risk of the tax and Customs implications created by Brexit, while shortening transit times for last mile deliveries by, “being closer to the end consumer and yielding reduced overall costs.”

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