Bonded Storage
Bonded storage is a port warehouse where imported goods are stored until customs duties and taxes have been paid or goods have been re-exported or have been re-imported. This warehouse is supervised by official duty and held in trust by a customs official.
As goods enter a bonded storage area, the owner signs an agreement saying that taxes and duties will be paid prior to goods leaving the warehouse, and goods must remain in this kept storage area until then. If a duty-free storage is used, it is not necessary to pay taxes and duties on goods, until they are removed from the warehouse and put into circulation in the country.
The main advantage of bonded storage is that the goods remain safe and secure until they are ready to be released. It also allows companies to store goods that may not be needed immediately, without having to worry about selling them quickly or risking their value. Furthermore, the bonded storage area is regulated by customs and tax rules, keeping goods away from traffickers, smugglers or illegal traders.
The drawback of bonded storage is that goods may have to be stored for a long time, may incur additional taxation or may be subject to potential theft. Moreover, there may also be additional costs involved for the movement of goods from the port or airport to the warehouse, such as transport, handling and storage costs. For example, when goods enter a warehouse, the warehouse manager may levy a charge for sorting and handling the goods, as well as storage and insurance fees.
In conclusion, bonded storage can be an advantageous storage solution for companies dealing with large volumes of imported goods. It can keep goods secure and allow companies to store goods until they are ready to be released. However, there are some drawbacks to storing goods in a bonded storage area, such as increased storage costs, additional taxation and the potential for theft. Companies must therefore weigh up the risks and benefits of bonded storage, to ensure that it is the right storage solution for them.
