What is Bonded inventory?
Posted On 19 November 2023
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Bonded inventory, also known as bonded products, plays a crucial role in the world of warehousing and logistics, offering businesses a unique solution to manage their goods more efficiently while adhering to customs and tax regulations. This specialized type of inventory is typically stored in bonded storage facilities until the necessary customs duties, taxes, and other import regulations are satisfied. In this article, we will explore the concept of bonded products and their various types.
Whether you're a manufacturer, importer, or distributor, understanding the ins and outs of bonded goods and utilizing bonded storage can open new doors to optimizing your logistics processes.
What is bonded inventory?
Bonded inventory is a term used to describe goods that are imported into a country without paying customs duties or taxes. These goods are stored in a best bonded warehouse, which is secured by a customs bond.
The purpose of the bond is to ensure that, upon the goods' release from the warehouse and entry into the domestic market, the importer will pay all applicable duties and taxes.
Bonded goods can help importers and exporters save money, improve cash flow, and avoid paying duties to multiple countries during transit.
Types of bonded inventory
Depending on the nature of the items and the need for storage, there are many forms of bonded goods. Common types include the following:
This is the type of inventory that is stored in a dry customs-bonded warehouse, which is used for the storage of all goods except alcohol and tobacco goods. It can include items such as electronics, clothing, furniture, toys, etc.
Wet-bonded inventory (wet bonded warehouse)
limited to alcohol and tobacco, this kind of inventory is kept in a wet-bonded warehouse. It may contain goods like liquor, wine, beer, cigarettes, cigars, and so on.
Anybody is able to store goods in a public bonded warehouse using this kind of inventory. All types of imports and exports, provided they comply with customs regulations, are eligible to be included in public-bonded goods.
Private bonded inventory
This kind of inventory is kept in a private bonded warehouse that is only accessible to individuals who have a permit issued by the customs authorities. It can also include any kind of goods that are owned by the permit holder or their authorized agents.
What are the main benefits of bonded inventory in global trade?
Customs storage of goods in warehouses or bonded inventory facilities provides several key benefits in the global trade process, including:
Customs storage helps ensure compliance with customs laws and regulations in different countries. Necessary customs procedures are applied to goods and products stored in customs warehouses or storage facilities, ensuring adherence to customs and trade controls.
Facilitation of Customs Procedures: Customs storage is part of the international supply chain, contributing to the facilitation and simplification of customs procedures related to import and export. Storing goods in customs warehouses allows for the efficient and organized processing of required customs procedures, reducing the time and effort needed for international trade operations.
Protection of Goods and Commodities: Customs storage provides a secure and protected environment for storing goods and commodities. Security and safety procedures at the customs level, including inspection and customs examination of goods, ensure their safety, quality, and minimize potential risks of tampering, damage, or theft.
Achieving Control and Oversight: Customs storage offers a platform for customs authorities to control and oversee the movement of goods and commodities. Goods stored are documented and recorded, facilitating their tracking and identification of their source and destination, essential for customs control, anti-smuggling, and anti-counterfeiting efforts.
Achieving Flexibility in Supply and Distribution Operations: Customs storage allows companies, suppliers, and exporters to control the timing and quantity of goods and commodities supplied. Goods can be stored in customs warehouses for specified periods, enabling the organization of supply and distribution operations to meet market needs flexibly and efficiently.
Cost Savings and Efficiency Improvement: Customs storage can lead to cost savings and efficiency improvement in global trade operations. Instead of paying customs duties and taxes upon arrival in the country, companies can store goods in customs warehouses and pay fees and taxes later when the goods are used or distributed.
What are bonded goods (bonded items)?
Bonded goods, also known as bonded merchandise, refer to goods that have not yet been cleared by customs authorities for entry into a country's domestic market. These goods are typically stored in a customs bonded warehouse or area until the required customs duties, taxes, and other import regulations are satisfied. Bonded goods can include a wide range of products such as raw materials, finished goods, and equipment. Until they are released from the bonded status, bonded goods cannot be sold or distributed within the country where they are stored. This system allows businesses to defer payment of duties and taxes until the goods are ready for sale or further processing, which can help with cash flow management and logistics planning.
The Relationship between Customs Storage and Customs Warehouses:
Customs storage and customs warehouses are two essential components of the customs storage and trading process for goods and commodities. While they share similarities in many aspects, they differ in terms of scope and core function. For instance:
Customs Storage Process for Goods: This process involves storing goods and products in designated customs areas to ensure compliance with customs laws and regulations in the country. The customs storage process aims to provide a safe and organized place for goods until necessary customs procedures, such as customs duties payment, are completed.
Customs Warehouses: Customs warehouses, on the other hand, are the actual facilities used for storing goods in customs areas. Customs warehouses are locations where goods are stored, documented, and controlled with the presence of customs authorities. These warehouses are equipped with facilities and amenities that facilitate the trading and execution of required customs procedures.
In summary, customs storage is a comprehensive process that includes the storage, organization, and control of goods in customs warehouses, aiming to ensure compliance with customs laws, facilitate import and export operations, and guarantee the smooth flow of global trade.
Why Choose Teda for Customs Warehousing and Logistics Services?
Teda Royal Customs Warehousing and Logistics is one of the leading companies in this field, providing your project with professional customs storage services. With extensive experience in the trading of goods, the company:
Owns fully equipped warehouses with high-level shelving systems and sufficient equipment, allowing the warehouse to provide multiple services simultaneously, given its flat space, enabling efficient goods handling.
Has 3 platforms for receiving transport vehicles with a capacity of 6 vehicles that can be handled simultaneously.
Possesses a strategic location connected to major roads and transport networks, linking to a 6-lane fast road for easy access to a large number of consumers.
The exceptional location also connects the company to all major industrial zones such as the Northwest Gulf of Suez Economic Zone, Teda Industrial Zone, the Tenth of Ramadan Industrial Zone, the Sixth of October Industrial Zone, Sadat City Industrial Zone, and Al Obour City Industrial Zone.
If you have a project that requires customs storage, we recommend working with us. For any inquiries, you can contact us through the numbers provided on the website.
Explore Teda Royal Bonded Warehouse for comprehensive solutions to your bonded inventory requirements and expert assistance in efficient management of bonded goods. With our state-of-the-art facilities and skilled team, we are equipped to guide you through intricate customs and international trade matters.
Reach out to us now to uncover the ways we can bolster your business operations and elevate your supply chain management. Your prosperity in global trade is paramount to us.
Why use a bonded inventory?
A bonded warehouse makes storage easier, boosts productivity by enabling the storage of goods close to distributors, and enables importers to hold onto goods longer at a reduced cost.
What does bonded mean in warehousing?
In warehousing, "bonded" refers to items that are under customs supervision and have not yet paid customs duties or taxes. In order to ensure that duties and taxes are eventually paid upon release, the warehouse operator posts a customs bond.