A secured structure or location that stores commodities subject to import/export duties and taxes is known as a bonded warehouse. It can be run by the government or a private business if it posts a customs bond with the authorities.
Bonded warehouses can offer specialized storage services, such as bulk liquid storage, deep freezing, commodity processing, and routine jobs like cleaning and sorting. You can provide transportation by purchasing a fleet of vehicles or outsourcing it to a third-party transportation service. With that in mind, here are a few tips to help you set up a bonded warehouse.
Design Your Bonded Warehouse Layout
The first step in setting up a bonded warehouse is to design its layout. A warehouse layout can be created using paper and pencil and CAD software. The first technique is self-explanatory. Grab a paper and pencil and design away. However, the second method is more involved and requires good computer-aided design knowledge. Some popular CAD software you can use include warehouse blueprint, CADlogic, Sketchup, etc.
However, hiring a freelance CAD designer will make the entire process much more manageable if you don’t know how to operate these design tools. Just ensure that you provide them with the necessary space and layout requirements to ensure they create an appropriate design.
Apply to the CPB
The next step to setting up a bonded warehouse is to apply to the CPB (U.S. Customs and Border Protection). You will have to provide them with a You must provide a description of the site and the premises, attach a blueprint with the building’s measurements, and include a certification from a fire insurance underwriter attesting to the structure’s appropriateness for warehouse operations.
Once you receive authorization from the CBP, potential exporters or importers can use your bonded warehouse for one day and up to five years.
The Bonding Process
As the bonded warehouse owner, you will store your customers’ products inside your facility. However, you must be bonded to do such a thing. Regarding the bonding process, your local port director will decide the amount for each area or building, typically not less than $25,000.
You must also pay the corporation with a Treasury license and get the customs bond. When you store products, you and the importer will assume responsibility for them under a bond that cannot be released until the stored items are exported or released from your warehouse or destroyed under the supervision of U.S. customs agents.
Set Up the Transport and Logistics Process
The last step to setting up a bonded warehouse is offering your clients transport and logistics services. This is necessary as your customer expects you to keep their goods secure while transporting them to their destination.
Of course, you can purchase a fleet of vehicles to do this yourself. However, you can also outsource the transport and logistics process to a third party. You must ensure your client’s products reach their destination without hiccups or delays.
Wrapping Up
These were some of the steps involved in setting up a bonded warehouse. Equipped with the correct information, we hope you can now set up a bonded warehouse of your own and tap into a sub-sector of transport and logistics that is booming right now!
