Bonded Warehouse
A Bonded Warehouse is a storage facility approved by the U.S. Treasury Department and under bond/guarantee for observance of revenue laws. It is used for storing goods until duty is paid or goods are released in some other proper manner.
Bonded Warehouses are approved areas that store imported product until duty payment takes place. The importer has up to 3 years after product arrival to pay duties on it, but does not have to wait that long as there are certain circumstances where it can be extended up to 10 years.
In a bonded warehouse, customs clears the goods through a process called “in bond movement”.
Bonded Warehouse is also known as Public Store.
Why Importers Prefer Bonded Warehouses?
A bonded warehouse enables the importers to defer payment of Levies, Taxes and Duty until they are ready to take delivery of their goods or pay for them at their convenience. The only conditions are that the products should remain un-opened in original packing and an undertaking be given that the products would not be used by the importer himself. If these conditions are fulfilled then there is no need to pay right away. The warehousing costs, interest on credit period etc., can all be added up to the cost of products themselves & for them whenever required by the importer.
The importer can avoid paying storage and other charges by keeping the stock in bonded warehouse under customs supervision and avail the services of free inspection by Revenue, Custom & other Agencies for which he is liable to pay only actual physical cost involved.
The importers also see benefits in availing long term credit facilities from Banks against such stocks as these are easily marketable assets with short turnover. They compensate for any temporary liquidity problem faced due to import. Also, it is much easier to arrange export finance because the products are readily available and competitively priced at this stage.
Related Links
Bonded warehouse
Why Use Bonded Warehousing Facilities? 7 Great Reasons – International Customs Clearance Logistics Company Miami
Bonded Warehouses Can Save Global Companies Money – Logistics Viewpoints
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