Why bonded warehouse

When using a bonded warehouse, the goods must be sent directly to the site, which must be approved for the particular goods being stored. For example, if the goods contain any hazardous substances it will be important to ensure appropriate safety measures are in place. At the point the goods are moved from the warehouse to the final destination, they attract duties that are payable to the government. The movement of goods needs to be declared to ensure the right duties are calculated.

However if the duties are exported or moved to another customs zone, duty is not payable. The alcohol industry makes frequent use of bonded warehouses. In Australia, bonded warehouses are used for what is known as EEGs — excise and excise equivalent goods — such as alcohol, tobacco and fuel. Businesses that wish to use bonded warehouses must have a license to do so, which is obtained through the Australia Taxation Office.

Once the appropriate permissions are in place, businesses can store, pack, and conduct some further manufacturing processes within the warehouse. Under United States law, bonded warehouses can be used for manufacturing purposes, alongside storage of goods. Product is able to be stored in bonded warehouses for up to five years without needing to pay duties. The duties are then payable when the goods are exported or withdrawn from the market. There are various types of bonded warehouses in the United States, including those run by the Government or those run by public or private interests.

Many are set up to support specific industries, such as large imports of merchandise, animals, metal products and grain. They can be developed to store these particular types of goods. As in other developed markets, these are used to store products that attract customs duties. Any business that uses a bonded warehouse in New Zealand needs a license to do so. The bonded warehouses are used to store and make excisable products, before they are moved to their final destination.

Other types of bonded warehouses used in New Zealand include stores that sell duty free items, sites at which products are manufactured, and places that are used for New Zealand Customs officials to examine products before clearing them to be transported on. The definition of a CCA also covers sites at sea or in airports, where cargo is loaded or unloaded by any kind of vessel or aircraft.

Private bonded warehouses allow for greater control of fragile or hazardous goods. A private bonded warehouse is one owned by the business for its importing and exporting purposes.

Private bonded warehouses are generally established when the business is growing rapidly or is already well established, as it requires a large capital outlay to set up. However, there are significant benefits to private warehouses as the owner has full control over the site location, building and design of the warehouse, and management of inventory once it is established. This means private warehouses can be designed for very specific trading needs, which in turn create efficiencies in workflow and inventory management.

However, developing a private bonded warehouse is often prohibitively expensive, and companies often turn instead to a public bonded warehouse which they can use at an arranged cost. Requirements for bonded warehouses are generally similar across different jurisdictions, with some regulatory differences. Creating a private bonded warehouse is a major business decision.

The initial financial outlay is significant, and there would need to be compelling business reasons around efficiencies and the need to have a bespoke warehouse for the particular product being housed.

If a decision is made to develop a private bonded warehouse, a site will need to be identified, and designs created to ensure it best meets the needs of the products it will house. There will also be requirements to show good bookkeeping and tracking of inventory, to ensure duties are properly calculated and paid when required. Bonded warehouses are often located close to ports and airports. Bonded warehouses are generally located near ports, either land or sea, as those are areas that come under the control of customs authorities.

Such sites also ensure ease of shifting products from aircraft or ships to the bonded warehouse. Free ports and bonded warehouses have some similarities, in that they hold products that have not yet attracted customs duties.

Your email address will not be published. What is a Customs Bonded Warehouse? Get a free warehousing quote. Customs Bonded Warehouse Requirements Most Customs bonded warehouses are owned by the government, but there are some that are privately-owned.

Long-Term Storage Customs bonded warehouses are great for long-term storage. Deferred Duties The great thing about Customs bonded warehousing is that it saves money. Ideal for Storing Restricted Goods Customs bonded warehouses are perfect for storing restricted goods.

Convenient for International Shipping One of the most significant advantages of a Customs bonded warehouse is how convenient it is for businesses that ship internationally. The importer can then take one of two routes: Importing Goods can be stored at the warehouse until there is an increase in demand for the goods, at which point the importer will pay duties on the goods as they are delivered to their destination within the country of holding. Exporting Importers can store goods at the warehouse to facilitate the consolidation of assets before being exported again.

Stress-Free Relationship Ultimately, storing goods at a Customs bonded warehouse is stress-free for importers, and finding a certified warehouse will make storing and transporting international goods a smoother process. Find a Trustworthy Warehousing Partner At Bridgetown Trucking, we offer Customs bonded transportation and warehousing for imported goods. Continue Business as Usual Call us up to learn more about our Customs bonded facilities! See Customs Bonded Services. Submit a Comment Cancel reply Your email address will not be published.

Get Your Quote. There will be the provision of CCTV as well as staff who will ensure the goods are cared for and every item is documented. In order to be a customs warehouse approval is given by HMRC and includes meticulous assessment and auditing, so you can be assured that your goods are well looked after. Most bonded warehouses are located near major ports and airports which allows for ease of storage close to the port of entry and then again ease of distribution to major national road networks or international exporting when the goods are ready to be released for sale.

This ensures a reduction in distribution times as well as lowering the cost of transport and therefore emissions. Bonded warehousing can allow your business some breathing room in terms of time and cost, with the ability to defer import and excise duty payments you will gain some flexibility in order to store, repack and plan the ultimate distribution of your goods.

With the advantage of storage without customs charges straight away, you may also be able to maximise on exchange rates and other factors which will determine the price of your goods. Our warehousing logistics division operates over 80, sqm of warehousing throughout the UK and Romania, servicing customers within a number of sectors, including: technology, manufacturing, FMCG, automotive, agriculture, retail, fashion and eCommerce.

What is bonded warehousing and how can it help your business? What is Bonded Warehousing? What are the benefits of Bonded Warehousing? There are numerous benefits associated with bonded warehousing, here are some of them: The deferring of duty and tax payments With payment only being due when goods leave the warehouse it provides some time and space in order to carry out any preparations needed prior to sale, and of course can have a positive impact on cash flow.