Customs bonded warehousing is a protected area where imported and exported goods are kept. The only difference between a custom bonded warehouse and non-bonded warehouses is the connection of the warehouse with Customs. In this article, we'll explain why you need customs bonded warehousing.
Before the goods are delivered to their destination, they must be checked and approved by the customs agents. For a non-bonded warehouse, the person importing the goods must pay the required taxes immediately and have the goods inspected regardless of where they are destined to.
To lessen the burden of custom agents, companies work with accredited transportation and warehouses to receive and store goods until all the matters to do with inspection and duty is done with.
Customs bonded warehouses are often supervised by customs officers, making it easy for them to delay payments until the goods are sold.
Requirements of Custom Bonded Warehouse
Some of the custom bonded warehouses are owned and operated by the government; however, there are some that are owned by private individuals.
Private individuals must get permission from the US customs office for their storage facilities to be allowed to operate.
One of the main advantages of customs bonded warehouses is the ability to save money. When you import goods and store them in a customs bonded warehouse, you will not be forced to pay duty until the goods leave the warehouse.
This arrangement saves importers money that they would have used to store the goods irrespective of what they want to do with them. Besides, it also gives the importer enough time to finish up with the legal requirements for importing goods into the country.
Customs bonded warehouses are best for long-term storage of goods. You are able to store your goods up to five years in the United States without paying any duty. But the storage period in some countries is indefinite.
Storing your goods for a long time helps in eliminating the need to travel around with goods. It also gives you time to find the right buyers.
Perfect for Storing Restricted Goods
Another advantage of customs bonded warehouses is that it allows you to store restricted goods. The importation of restricted goods has a lot of paperwork and legal requirements. You should note that there is a time limit for storing restricted goods in a warehouse before the approval of the necessary paperwork.
But the good thing is that customs warehouses are not bound by those time limits. This means you can keep storing your restricted goods for up to five years.
Ideal for International Shipping
Customs bonded warehouses are most convenient for businesses that deal with international shipping. If for example your business is involved in shipping products from different countries across the world, you can import them and store in customs bonded warehouses indefinitely without paying duty fees.
There are two options available: If you are importing, you will only be required to pay duty if there is an increase in demand for storage space. On the other hand, if you are exporting you can agree with the bonded warehouse to consolidate assets before exporting them.
There’s no doubt that storing goods in a customs bonded warehouse gives a lot of relief to many importers and exporters. You don’t have to worry about the safety of your goods since they are under 24/7 surveillance.
Besides that, the issue of taxes, duties, inspection, payments, and any other legal paperwork is deferred until your goods are moved out of the warehouse. You even have time to look for buyers and dealers to dispose of your products while they are being stored in the warehouse.
Contact Port City Logistics for Your Customs Bonded Needs
Customs bonded warehouses are in use all over the world. As one of Savannah's top logistics companies, Port City Logistics leads the way for those who need top-tier customs bonded warehousing. Our experienced team will keep your goods safe, secure, and ready for transport. If you think you may need to learn more about a customs bonded warehouse, please contact us today. We'll further explain why you need customs bonded warehousing for your business.