What is a bonded warehouse?
A bonded warehouse is a facility designed specifically for the storage of goods that are subject to excise or import duties. It is a building or defined area that is approved and supervised by customs authorities. Goods can be stored in a bonded warehouse without incurring import duties or other taxes, as long as they remain there.
What kind of goods are stored in a bonded warehouse?
Bonded warehouses are mainly used for the storage of goods subject to import duties or excise taxes, such as alcohol, tobacco, perfume, and other luxury goods. These goods can only be stored in a bonded warehouse if they have not yet been imported into the destination country or if no import taxes have been paid.
Who can use a bonded warehouse?
Anyone who imports goods can use a bonded warehouse. It can be especially advantageous for importers who import large quantities of goods and want to store them pending sale without immediately paying import duties. It can also be useful for companies that import goods subject to seasonal taxes, such as Christmas decorations.
What are the advantages of a bonded warehouse?
The biggest advantage of a bonded warehouse is that it allows importers to store goods without immediately paying import duties or other taxes. This can be advantageous if the goods have not yet been sold and no income has been generated to pay the import duties. In addition, a bonded warehouse can also be used as a distribution center for goods stored pending shipment to other locations.
Are there any disadvantages to a bonded warehouse?
The biggest disadvantage of a bonded warehouse is that there are restrictions on the storage period of the goods. Customs authorities set a maximum period within which the goods must be cleared and the import duties paid. If this period expires before the goods are cleared, fines may be imposed and the goods may be seized.
SMART HUB Logistics has the necessary licenses and storage facilities to provide a bonded warehouse service. We can safely and legally store and clear customs goods at the time of clearance. Contact us for more info!