The Warehousing industry is a colossal industry in itself and has been a witness to different diversification and classifications. Warehousing is divided into some of the niche segments, and one of them is the custom bonded warehousing. A custom bonded warehouse is authorized and used for storing the goods that fall under the control of the customs department. The duties and taxes of the goods are waived off while the goods are stored in it during the time window between import and distribution or before its export.
These Warehouses are used for international trade and the inflow or outflow of the goods cannot take place without the consent of the customs department. However, the owner of the goods is allowed to visit the facility to inspect and carry out necessary maintenance operations until and unless it does not alter the nature and characteristics of the goods.
The custom bonded warehouses are classified into three different types, according to their authorization.
- Public Bonded Warehouses: They are authorized by the Ministry of Economy and Finance and can be used by anyone having the legal rights to the goods. Importers, having the right to distribute the goods can use this facility.
- Private Bonded Warehouses: These are the custom bonded warehouses that are authorized by the Director-General of Customs and are to be solely utilised by the permitted personnel for storage of specific goods for their own use. Duty-free shop operators can avail this facility.
- Special Bonded Warehouses: These warehouses are authorized by the Director of Customs for the storage of the goods that are of hazardous nature. They provide a special storage facility as per the requirement. These warehouses can be both private or public.
There are a number of reasons to consider customs bonded warehouses with the goods allowed to be stored for up to 2 years from the date of registration of the customs declaration.
- You can get an Indefinite storage time so that if an importer fails to find a buyer in the market, then the goods can be exported without paying the duty on the goods.
- Companies engaged in export of goods that are manufactured/assembled with imported components can utilise it.
- It can be used when Companies engage in manufacturing-related operations such as packaging and labelling.
Such facilities are very specific to the domain that it deals with and due to that, it ensures security to your goods. It helps you not just with the cost-cutting but also gives a push to the growth of your business at a Global scale with overseas bonded warehouses. Chowgule brothers