A bonded warehouse which can also be called a bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
It can be managed by the state or by private enterprise. A customs bond must be posted with the government
A bonded warehouse can also be referred to as a building or a custom-controlled warehouse where goods are kept for processing before delivery”.
This bonded warehouse can be government-owned or privately owned by large enterprises.
But what differentiates it from a regular warehouse is that bonded goods are retained here until the customs duty is paid.
These bonded goods are kept only for a defined period of time, during which the duties and taxes should be paid in full.
Otherwise, the shipment is confiscated and dealt with according to the laws of the country. Most times, however, they dispose of these shipments.
Benefits of a bonded warehouse
Most companies use bonded warehouses to legally and safely deliver their products to customers.
Bonded storage is secure storage and is also under customs laws. The bonded goods are being well taken care of and documented. Exporters most times prefer bonded warehouse facilities not just for security but for other benefits like:
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No duty needs to be paid until the item is released for delivery to the buyer, giving full control of payment to the importer.
And, if the goods go unsold, they can be exported without having to pay the duty at all, as VAT is only paid when you sell your products and not on re-exported goods from the bonded warehouse.
Some businesses report saving 25% to 30% off taxes.
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Allowance of restricted items to be stored.
These items can be safely stored in bonded storage until they need to be sent out.
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Equipped facilities to handle different types of storage.
A Good bonded storage can store any kind of product for as long as needed.
A perfect example would be for perishable food items – there are freezers, dry containers, and other temperature-controlled rooms available.
- Receive a bond on your items.
Whenever you store bonded goods, the warehouse authority will give you a bond that ensures that you won’t face any monetary loss at the time of the release of the shipment after the payment of taxes, including VAT or GST.
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Additional logistics solutions.
It’s very possible to have access to a complete logistics solution, as bonded warehouses are affiliated with freight forwarding companies that handle distribution, Â deliveries, and more.
Advantages Of a Bonded Warehouse
What are the advantages of a bonded warehouse?
Many businesses that export products abroad use bonded warehousing facilities as it is a secured space where imported goods can be stored whilst waiting for the duty taxes to be paid and for the shipping logistics to be sorted out.
Some bonded warehouses are owned by the government while others are operated by private companies.
However, privately-owned bonded warehouses need a posted customs bond and some customs supervision.
Let’s take a closer look at some of the advantages of a bonded warehouse.
Long-Term access
Most facilities give you the access to store your goods for up to 5 years or more which gives businesses an added measure of convenience when shipping internationally. Some companies ship their products to a bonded warehouse and then wait to release them to market until the demand increases.
Quality Preservation
The majority of bonded warehouses can accommodate all types of products, goods, and materials and they also have the appropriate equipment and storage systems that can help sustain the quality of your goods.
Some of them have dry containers, deep-freeze systems or bulk storage facilities that will cater to any kind of business from any industry.
Deferment Of Duty
In a bonded warehouse, the payment of VAT and other duty taxes on various goods will be deferred until they have been removed and shipped.
While your products or goods are stored in a bonded facility, the warehouse manager will provide you with a bond that can ensure that your business will not have a loss of revenue.
Safety Of Items
With bonded warehouses, you do not have to worry about your goods, as there is security personnel who monitor the space 24 hours a day.
There are also updated and efficient security methods like security cameras, barcoding systems, and inventory systems that can guarantee that all goods stored are well documented and preserved.
Processing Efficiency
If you are using an all-in-one logistics and bonded warehousing partner like us at king shipping trading, you can expect efficient and affordable service.
It starts with a complete evaluation of your warehousing requirements; you can then obtain a suitable and customized solution.
Bonded Warehouse In Nigeria
A bonded warehouse is a secure place to store items intended for export while you wait for a buyer, allowing you to delay the payment of customs duties and taxes.
Backed by experience, King shipping trading takes all the complexities out of warehousing and distribution.
We leverage technology and efficient processes to serve our customers. We Facilitate the storage of your goods by guaranteeing safety and preservation.
We have a bonded warehouse license.
With our bonded warehouse, we offer more advantages that go beyond preserving your goods. What more can you ask for if not an extra value.
For more information on the best-bonded warehouse facility, contact us now at +2348167069828.