Bonded Warehouse
A bonded warehouse (or customs warehouse) is a secure storage facility where shippers can store their imported goods without needing to immediately pay import taxes and duties.
A bonded warehouse (or customs warehouse) is a secure storage facility where shippers can store their imported goods without needing to immediately pay import taxes and duties.
There are many advantages for businesses using bonded warehouses. The most significant benefit is the deferral of import taxes and duties.
It enables a business to manage inventory in a more strategic and cost-effective way, ultimately resulting in being able to get the right products to the right market at the right time.
Bonded warehouses are typically located close to ports and airports, so goods can be exported at speed to take advantage of market conditions.
Bonded warehouses is incidentally the flexibility that comes with not switching markets and keeping stock on location.
Bonded facilities offer extended storage periods, which means businesses can store goods until market conditions become favourable for their product. This will reduce the need to lower prices and sell at a loss in order to balance inventory, and is particularly important for seasonal products and in volatile markets. In this case, taxes and duties become applicable when your goods are released to the market from which you are storing.
By leveraging bonded facilities, businesses can optimize their supply chains, improve inventory management, and ensure compliance with regulatory requirements, all while reaping the financial benefits of deferred duty payments.
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