Our Bonded Warehouse Services
About Bonded Warehouse
A bonded warehouse, or bond, is a building or other secured area in which suitable goods may be stored, worked on, or undergo light assembly operations without payment of duty. It may be managed by the state or by private enterprises. In this concept of ‘bonded warehousing,’ the importers could store cargo and effect partial releases, thereby deferring duty payment to Customs, and at the same time, releasing the international (ISO) container in which the cargo is imported.
How does it work
While the goods are in the bonded warehouse, they may, under the supervision of the customs authority, be worked on in terms of cleaning, sorting, repacking, or otherwise changing their condition by processes that do not amount to manufacturing. After working on and within the warehousing period, the goods may be exported to another bond (EOU, etc.) without paying duty. They may be taken for consumption upon payment of duty at the rate applicable to the goods in their renewed condition at the time of withdrawal.
Bonded warehousing offers a triple advantage to the importers. On the one hand, it allows the deferment of duty payment, and at the same time, it allows the release of the shipping container back to a yard which otherwise attracts detention charges. It also allows for cargo to be stored under the relatively cheaper option of warehouse storage instead of holding on to an ISO container lying at the port for which dollar lease rentals of the container and the port / CFS rentals accrue on the importer.
Benefits of Bonded Warehouse
- Flexibility to clear cargo in part consignments (unlike in the case in other Container Freight Station (CFS) / Inland Container Depot (ICDs), thus allowing flexibility towards consumption/end distribution and availing the benefits of bulk import.
- De-stuffing cargo from shipping line containers into bonded warehouses avoids detention charges and port ground rent.
- Value addition services include labelling, packing, kitting, bar-coding, palletization, and other authorized services.
- Duty deferment benefits (freeing up working capital and reduction in costs)
- Quality control before duty payment is to be paid on cleared goods only.
- And all you pay is Per Box per Day or Per Pallet Per Week.
