Commodities imported into a new market are processed and held in storage facilities known as bonded warehouses. There are no customs duties on the items kept in the warehouse, but once the goods are released and delivered to their intended location, all necessary duties become due. Bonded warehouses, which the government or private businesses can own, can help improve inventory management and cash flow. Commodities can be moved closer to their final location by using a bonded warehouse, and tariffs can be postponed until the item is relocated. This practice provides significant benefits to companies that conduct cross-border operations.
- Duty payments can be deferred
In a bonded warehouse, you can postpone paying VAT and other duty taxes until the products are removed from the warehouse and sent out. This gives the shipper some breathing room and space to do more pre-sale activities. Additionally, you can completely avoid these costs if you export these goods.
- Long-term storage
Most bonded warehousing facilities agree to keep your products in storage for at least five years. If labour is necessary to meet import license requirements or demand isn’t as strong as anticipated, this can be helpful. You can hold your items in a bonded warehouse until the requirements have been fulfilled, or the demand has increased.
- Quality preservation
Bonded storage facilities are capable of storing any commodity for as long as required without compromising quality. For example, there are facilities with bulk storage areas, deep freeze systems, and dry container storage.
- Safety and Security
Due to the facility’s constant surveillance by security personnel, you don’t need to worry about your cargo in a bonded warehouse. Modern and effective security measures such as surveillance cameras, barcoding systems, and inventory systems are also available, which guarantee that all goods kept in storage are thoroughly recorded and safeguarded.
- Proximity to ports
There are numerous bond storage facilities near ports and airports where importers can hold their goods until they are able to be dispersed. Costs associated with transportation and carbon emissions are reduced across the whole supply chain since lead times and damage are decreased.
- Better service
You can place orders for commodities in advance of anticipated demand by using bonded warehouses. You can deliver products more swiftly and provide a better experience because the items are kept closer to the end customer.
- Posted by WiserTech Solutions
- On September 20, 2022