It opened in July 1864 as a custom house, built to facilitate the import and export of goods at Shields Harbour.

In 1992, the Tyne and Wear Development Corporation led a restoration effort and extension of the building, transforming it into an arts centre.

The Customs House is a Grade II listed building, built out of sandstone and decorated with Heworth stone dressings, arches and pediments.

[4] Designated as a Grade II listed building on 25 January 1978, The Customs House is among four of such structures in the Mill Dam Conservation Area.

[8] Since 1815, shipowners at Shields had campaigned for a custom house to be stationed at the harbour, where a large amount of the River's industry took place.

[8][9] Applications for customs houses at both North and South Shields were continually turned down by the Treasury, in part due to pressure from the Newcastle Hostmen.

[3][15] Campaigners for an independent custom house in South Shields were faced with the reality that there was a lack of an adequate physical location from which to conduct business; an application made to the Treasury in 1862 was rejected solely on this basis.

[16] To allay concerns, construction began in 1863 of a custom house and office for the Marine Board in South Shields.

[17] The Treasury agreed to the request, and South Shields custom house commenced operation on 1 October of that year.

It stated that the successful purchaser would be responsible for restoration and described the space as suitable for “a wide range of uses … including commercial and entertainment”.

[22] Among the suggested potential functions for the building included a radar simulator for the South Shields Marine and Technical College.

[20] Tyne and Wear Development Corporation also bought a set of old workshops on Dalton Lane, refitting them as an office, rehearsal, community and storage space for the Customs House in 1994.