{"id":668,"date":"2022-08-31T10:16:14","date_gmt":"2022-08-31T10:16:14","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/encyclopedia.mp.com.sg\/?p=668"},"modified":"2023-07-20T08:20:38","modified_gmt":"2023-07-20T08:20:38","slug":"bonded-warehouse","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/encyclopedia.mp.com.sg\/bonded-warehouse\/","title":{"rendered":"Bonded Warehouse"},"content":{"rendered":"\n

A bonded warehouse is a secure facility where imported goods may be stored while deferring customs duty payments. Bonded goods may be re-exported tax-free or released domestically upon payment.<\/p>\n\n\n\n

These warehouses may be privately or publicly owned and all activities are subject to local laws. Manufacturing operations may take place with relevant approvals from customs authorities.<\/p>\n\n\n\n

In many countries, goods may be granted storage in these warehouses for several years.<\/p>\n\n\n\n

\n<\/i> Summary<\/i><\/b>
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  • A bonded warehouse is a customs-regulated facility typically used for the storage of duty-deferring imported goods.
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  • Customs duties are only paid when goods are withdrawn from a bonded warehouse, into domestic markets.
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  • Bonded warehouses may be state-owned or privately owned. Owners are obligated to obtain a warehouse bond from a recognized surety company before the facility is allowed to operate.
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    Types of Bonded Warehouses<\/strong><\/h2>\n\n\n\n

    There are 2 main types of bonded warehouses<\/a> \u2013 public and private.<\/p>\n\n\n\n

    Public Bonded Warehouse<\/strong><\/h3>\n\n\n\n

    Public customs bonded warehouses are owned and controlled by either the state or local port authorities. They can be used by anyone who wishes to store goods duty-free under the supervision of customs.<\/p>\n\n\n\n

    Some subtypes include free warehouses and bonded logistics parks.<\/p>\n\n\n\n

    Private Bonded Warehouse<\/strong><\/h3>\n\n\n\n

    These warehouses are owned by private entities, licensed by local boards to store items without the need for customs clearance<\/a>. There are 2 types of private bonded warehouses:<\/p>\n\n\n\n

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    1. Facilities where owners are only permitted to store their own goods within the premises. They cannot store goods on behalf of external entities.<\/li>\n\n\n\n
    2. Facilities where owners may accept and store goods from external entities or clients.<\/li>\n<\/ol>\n\n\n\n

      Advantages of a Bonded Warehouse<\/strong><\/h2>\n\n\n\n

      Save Costs<\/strong><\/h3>\n\n\n\n

      Businesses may import and re-export goods without having to pay for taxes and duties. Some manufacturers may even be permitted to process goods and materials within the warehouse. This may result in a tariff classification with lower duty rates, saving costs for businesses.<\/p>\n\n\n\n

      Safe and Secure Storage<\/strong><\/h3>\n\n\n\n

      Bonded warehouses tend to offer greater security due to round-the-clock surveillance. Items are also insured<\/a> against theft and elemental or handling damages. Companies may thus store their items safely and reliably within these premises.<\/p>\n\n\n\n

      Storage of Restricted Goods<\/strong><\/h3>\n\n\n\n

      Bonded warehouses make it easier for businesses dealing with restricted goods or dangerous goods<\/a> (e.g. alcohol, biodiesel products, batteries<\/a>) to import these items. Products may be stored in these facilities while any necessary paperwork and authorizations are being sorted out.<\/p>\n\n\n\n

      How to Become a Bonded Warehouse<\/strong><\/h2>\n\n\n\n

      Companies who wish to benefit from the perks of operating a bonded warehouse may apply for licenses from relevant local customs authorities. Though the procedure may differ for each country, the general steps are outlined below.<\/p>\n\n\n\n

      Step 1: Decide on the type or class<\/strong><\/h3>\n\n\n\n

      First, businesses should determine what different bonded warehouse classes are recognized under a country\u2019s regulations. They then need to decide which class they would like to register their warehouse under.<\/p>\n\n\n\n

      Step 2: Submit an application to the local customs board<\/strong><\/h3>\n\n\n\n

      Businesses then need to submit a formal application to the country\u2019s relevant customs board.<\/p>\n\n\n\n

      Step 3: Submit relevant documents<\/strong><\/h3>\n\n\n\n

      Relevant documents must then be submitted. This may include:<\/p>\n\n\n\n