A Custom Bonded Warehouse, also known as a customs-bonded warehouse or bonded warehouse, is a facility authorized by customs authorities where imported goods can be stored, manipulated, or undergo manufacturing processes without payment of duties and taxes.
The primary purpose of a custom bonded warehouse is to provide a secure and controlled environment for goods before they are released into the domestic market.
Here are some key points about custom-bonded warehouses:
- Deferred Duty Payment:
A customs-bonded warehouse is like a storage locker where you can keep imported goods without paying the customs duty right away. You only pay the duty when you take the goods from the warehouse.
- Storage of Imported Goods:
These warehouses are like a holding area for imported goods you plan to export later or sell in the local market. Until you pay the duty, the goods have to stay in the warehouse.
- Long-term Storage:
These warehouses are great for storing goods for a long time. You can keep your goods in the warehouse for up to a year without paying duty.
- Ease of International Shipping:
If you’re a business that ships goods internationally, these Custom Bonded Warehouses are very helpful. They give you extra time to complete all the legal work needed to import your goods into the country without worrying about paying the duty right away.