You might have heard or read the term customs bonded warehouse and wondered what it is. Well, if you are moving or travelling to a country like Australia where customs clearance rules are very strict, knowledge of customs bonded warehousing is advantageous.
A bonded warehouse is a secure storage area where goods to be shipped are stored, manipulated and even manufactured without having to pay any duty. Once these goods enter the warehouse, they are the responsibility of the warehouse authority under an agreement made between the warehouse authority and importer/exporter.
Warehouses are temperature controlled and are equipped with all facilities for storage, palatalizing, packing and stock control. Trade fairs and exhibition goods can also be stored in these warehouses.
Warehouses are mostly owned by the government but many private companies too have warehouses which require a posted customs bond as well as some customs supervision.
A customs bonded warehouse Sydney for example is associated with moving your import or export cargo to the covered or open bonded warehouse. This helps you to activate your plans without having to pay taxes and customs duties.
The warehouse is managed with total adherence to Customs laws, rules, regulations, documentations and procedures.
Advantages of Bonded Warehouses
1. No Payment of Duty
As mentioned above, the main advantage of a customs bonded warehouse is that the importer/exporter and the proprietor of a warehouse don’t have to pay any kind of import duty on goods that are traded or bought internationally. This way a lot of money of the importer is saved and they get more control over their finances.
2. No VAT Payment
Goods liable to Value Added Tax (VAT) can also be stored in a bonded warehouse since VAT payment is deferred till the items are removed from the warehouse or sold. This has some obvious advantages to a seller who sell/import goods liable to VAT, including wine, food, spirits and tobacco.
3. Long-term Storage
Though the duration of storage differs from country to country, generally you can store your goods in a warehouse for quite a long term, even five years. This way you can make your product sit till there is a rise in demand.
Since duty should be paid when the goods are removed from the warehouse for consumption or exported, this is also a great help to the importer to manage their money since a rise in demand often equals a rise in revenue.
4. Safe Place for Restricted Goods
If you have imported products that are under restriction, getting something to do with them before the restrictions are straightened out can be a problem. A bonded warehouse permits storage of restricted goods until they can bemoved somewhere else or are permitted to bring them to the country.
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5. Guarantee of Supply
Another advantage of a warehouse is a guarantee of supply of goods. Goods can be bought/imported and stored before the arrival of peak season so that in the peak season they are readily available to meet the demand.
6. Specialised Facilities
As mentioned earlier, bonded warehouses have a lot of specialised facilities including quarantine cleaning services, dry containers and deep-freezers to store spirits/wines. These facilities are provided by the warehouse authority so as to maintain the quality of your goods until they are in their custody and are sold.
7. Safety of Your Goods
Once your goods are in the warehouse, you don’t have to worry about them as there is security personnel for 24 hours to monitor them and there is a special monitoring for refrigerated goods. There are also specialised security features like bar coding systems, security cameras and inventory systems.
8. Transportation Provided
Once the stored goods are sold and duty is paid, bonded warehouses also provide transportation service.
9. Customs Documentation
A bonded warehouse also provides inward as well as outward customs documentation.