Imported commodities that the customs department hasn’t processed are kept in bonded warehouses, also known as bonded goods. It is, in essence, a duty-free area. Wet storage and dry storage are the two categories. Only wet-bonded warehouses are permitted to store alcohol and tobacco.
Like imported commodities, bonded goods are those for which tariffs, taxes, and customs fees are still owed. Typically, these items are held in a customs-bonded warehouse, a warehouse section under customs officials’ jurisdiction.
So, if you own an import and export business and are looking for storage space, the benefits of bonded warehousing listed below should not be ignored.
Bonded Warehouses are Located Close to Ports
One of the most significant benefits of bonded warehousing is the proximity of the bonded warehouses themselves. Most bonded warehouses are adjacent to essential ports or airports, enabling businesses to hold their products there until they are ready for shipment. As a result, the supply chain process experiences cost savings since lead time, risk of damage, transportation costs, and carbon emissions are decreased.
Bonded Warehouses Safe and Secure
Another one of the most apparent benefits of bonded warehousing is exceptional security. Safety precautions like CCTV cameras ensure that goods are well-cared for and thoroughly documented inside a bonded warehouse. Additionally, you can rest assured that you are doing business with a respectable organization because various port and government organizations carefully audited and evaluated these warehouses.
Bonded Warehouses Help You Avoid or Defer Taxes
In the case of bonded warehousing, only when the goods are ready for sale and depart the warehouse when payments are due. This gives you some breathing room to conduct additional pre-sale activities while helping you improve cash flow.
These expenses are entirely avoided if the products are exported. Ultimately, the benefits of bonded warehousing have been associated with tax expense savings of between 25 and 30 percent. However, this might differ from state to state. So, contact your local port authority to learn more about tax savings.
Bonded Warehouses Ensure Quality Preservation
Bonded warehouses are maintained to a higher standard to protect the integrity of the items stored inside them. For example, fine art and antiques demand careful management, which a bonded warehouse will provide you with.
Bonded Warehouses Offer Various Logistics Services
Another one of the most common benefits of bonded warehousing is the list of services on offer. Owners/administrators typically offer additional logistics services such as e-commerce fulfillment and full third-party logistics. This means your products reach customers’ doorstep without any hiccups. Bonded warehouses are an all-in-one solution for businesses seeking a more effective supply chain management and logistics process.
Wrapping Up
The benefits of bonded warehousing for import and export businesses are endless. Most bonded warehouse providers pride themselves on their ability to cater to their client’s needs and knowledge of the logistics industry. So, the next time you need space to store your imported or exported products, a bonded warehouse will be your best bet.
