Bonded Warehouses

With the advent of shipping, commodities are imported and exported universally. As products are moved from one location to another, the use of various modes of transportation has become essential. Just as an example, product is picked up from the factory by truck then transported by train or ship for the rest of the journey. As manufacturers move their goods, the retailer may not always need them immediately, or perhaps the retailer does not require the goods for their stores immediately. In this situation, the manufacturer must have a location to store their goods while waiting to ship the product to their customers.



Warehouses also provide a location for cross docking services. This means that a load in transport may need to drop off at one location to be picked up by another truck or service. A bonded warehouse helps with the transport of these commodities by providing a drop off location and delaying payment on taxes until transfer.


A bonded warehouse is a facility that is privately owned by a private firm or individuals that secure the goods are under customs supervision and needs to be moved out for consumption or re-exported. Duties on commodities that are unpaid are stored under bond, which is joint custody between the importer and customs officer. Goods liable to duty are kept at the warehouse until the taxes are paid. The benefits of using a bonded warehouse allows for storage of goods under bond are not taxed until transported out of the warehouse. So, unless the goods you deal with are produced in a free industrial zone, consider using a bonded warehouse to store your product.


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