Bonded Warehouse is one of the types of warehouses, in which imported goods that have not yet been processed by taxes are stored, that is, the taxes and customs duties are still on them, and there is a customs authority that controls this type of warehouse, and there are many advantages provided by Bonded Warehouse, the most prominent of which is the possibility of postponing Paying due taxes or any other fees until those imported goods are distributed for sale, and in this article we will learn together in some detail what is a Bonded Warehouse and what are its advantages and most important disadvantages, and we will also show you what is meant by a private bonded warehouse.
It is a building or secured area used to hold imported goods awaiting customs clearance, and in most cases they are close to commercial ports.
These warehouses are licensed by the country’s government to hold goods until customs duties are paid and a clearance document is issued to them.
When the goods enter the Bonded Warehouse, the importer and the warehouse manager bear the responsibility of the goods under a document signed between the two parties, and this responsibility is canceled in the following cases:
- When the goods are exported or considered to be exported;
- When the goods are to be withdrawn for the purpose of transporting them to a cargo ship or aircraft; You can track shipments through the tracking service provided by diggipacks.
- When the goods are destroyed by a decision of the Customs;
- Upon obtaining the clearance document and withdrawing the goods.
Importance of Bonded Warehouse
It is of great importance, and here are a number of points that illustrate this importance :
- Goods kept in the warehouse are safe, so the importer gets time to pay customs duties;
- It is possible for the importer to keep the goods in the customs warehouse if the goods are not required immediately and does not wish to pay storage costs, by delaying the payment of clearance fees;
- Importers are allowed to sort, divide and reclassify the goods within the bonded warehouse, making them ready for sale after clearance is obtained;
- If the importer does not own a private warehouse, he can transfer the ownership of the goods to another person while the goods are still in the warehouse.The advantages of a bonded warehouse
The advantages of a bonded warehouse
there are a number of benefits to users, and the following are the advantages :
1. Postponing the payment of duties and taxes
One of the most prominent benefits is the possibility of postponing the payment of taxes and duties on imported goods.
This is until these goods are taken out of the warehouse for sale, which allows importers to engage in other activities before selling them.
There are also some countries that impose savings and deductions in tax costs of up to 30% when importers use bonded warehouses.
2. Possibility to store for a long time
Bonded warehouses allow the possibility of storing imported goods for a long period, so this type of warehouse is called long-term storage warehouses.
If the imported goods do not meet some requirements, they can be stored in a bonded warehouse until all requirements are met.
3. Provide a better customer experience
Bonded warehouses allow imported goods to be stored ready to order, which will provide customers with better service and thus provide a better customer experience.
4. Maintain the quality of the stored goods
Bonded warehouses are equipped to the highest level, so that they can store any type of goods. They are equipped with facilities that can control their temperature, in addition to the presence of dry and refrigerated containers.
5. Maintain the security and safety of the goods
shall be equipped with all security and safety devices to provide security and safety for all goods stored therein. are also subject to many regular reviews by the competent authorities.
6. Proximity to ports
Most bonded warehouses are located near the nearest ports and airports, thus allowing companies to store their goods at the port of entry and ready for distribution.
Thus, saving a lot of costs, as well as reducing the time taken, and reducing the possibility of any damages, in addition to reducing transportation costs.
7. Provide additional logistics services
This contributes to maintaining the movement of corporate puns, as well as saving time and effort in searching and dealing with suppliers.
The disadvantages of a bonded warehouse
Despite the many advantages, there are a number of disadvantages that occur in bonded warehouses, and the following are the most important of those disadvantages:
1. Goods must be paid and removed from the warehouse within two years at most
On the figure that bonded warehouses are a place for long-term storage, but the period is not infinite, so this type of warehouse requires importers to pay the goods and remove them from the warehouse in two years at most.
This will cause a problem for importers with goods that need a long time to find the right market, which makes the importer have to sell at a loss, so this type of warehouse is not the best place to store goods.
2. The length of time in the clearing process
Bonded warehouses do not allow the exit of any goods from them except after following all the procedures for clearing those goods, and sometimes that process takes a great deal of time and is very cumbersome.
3. The need for a license to establish bonded warehouses
Bonded warehouses can only be operated or established with the approval of the competent customs authorities in that area, and therefore are not always readily available.
What is a private bonded warehouse?
is divided into two types, the private and the public, and the following is what is meant:
It is the place or building in which goods are deposited for the account of the owner of the private warehouse under the supervision of the competent customs department in a suspended situation for taxes and customs duties in accordance with the provisions of the customs system and law.
Type of person or business uses a bonded warehouse
is used by individuals or companies, and is frequently used by companies or importers who move goods in bulk.
This type of warehouse provides many benefits to companies and importers, in terms of inventory efficiency and cash flow.
Bonded warehouses take one of the following forms:
- Public bonded warehouses, which are owned by a party and used by individuals in return for payment of a certain fee.
- Private bonded warehouses, which are owned by their employees under the supervision of the customs authority.