Bonded warehouse
What is a bonded warehouse?
A bonded warehouse is a secured facility authorized by customs authorities where imported goods can be stored, manipulated, or undergo manufacturing operations without payment of duty. These warehouses are crucial for international trade as they facilitate the storage and handling of goods under customs control before duties are paid or goods are released for circulation within the importing country.
How do bonded warehouses work?
Goods stored in a bonded warehouse are under customs supervision but are not considered within the customs territory. This allows businesses to defer payment of customs duties until the goods are sold or moved out of the warehouse. During their stay, the goods can be inspected, sorted, repackaged, or undergo other value-added processes. This setup benefits businesses by providing cash flow advantages and flexibility in managing inventory and supply chain operations.
How to move goods from a bonded warehouse?
To move goods out of a bonded warehouse, businesses must complete the necessary customs formalities and pay applicable duties and taxes. Alternatively, if the goods are re-exported or transferred to another bonded warehouse, duties may be deferred further or avoided altogether, depending on the destination and intended use.
Bonded vs. non-bonded warehouse
The primary distinction between bonded and non-bonded warehouses lies in customs control. Bonded warehouses offer customs-related advantages such as deferred duty payments and flexibility in handling imported goods, whereas non-bonded warehouses require immediate duty payment upon importation and do not provide the same customs benefits.
Customs warehouse vs. bonded warehouse
Customs warehouses, often referred to as duty-free zones or free trade zones, are similar to bonded warehouses but are more comprehensive in scope. They allow for a broader range of activities, including manufacturing and processing, under specific customs regulations. Bonded warehouses, on the other hand, are strictly for storing and handling goods under customs supervision, with limited processing or manufacturing allowed.