Storage: Breaking Bulk
When applying for a registered store, a manufacturer must declare the size of packing that constitutes his “bulk unit”. (See section TPD3160) This may range from a case to a shrink-wrapped pallet. Whatever size of packing the manufacturer chooses as his bulk unit, it must be an individually sealed unit. ‘Sealed’ in this context means enclosed in such a way that the contents cannot be removed without breaking the packaging, such as would occur when opening a taped case or shrink-wrapped pallet.
The manufacturer may wish to open “bulk units” and remove part of the contents to make up mixed orders. This is known, logically enough, as “breaking bulk”.The manufacturer must declare, at the time he applies for registration of a store, whether or not he wishes to “break bulk” whilst the product is still in duty suspense within the registered store. (See section TPD10050 for information on breaking bulk in stores approved for “electronic removal”.)
A manufacturer may only request “offsetting” arrangements if he does not break bulk in the registered store.