BlogCustoms Bonded WarehousesFTZ
The term bonded warehousing may be similar if you have worked or known about international trade or global supply chains. How does a customs warehouse operate and how can it help your business? This should be your point of focus. Understanding the finer aspects of bonded warehouse or warehouse customs can assist you in making informed decisions and streamlining your export/import trade and supply chain accordingly. A bonded warehousing facility can also give you the option for affordable storage choices.
Explain Bonded Warehousing Solutions
A bonded warehousing is a unique storage facility wherein imported products or commodities can be contained and stored under certain rules and regulatory conditions. Such warehouses are mostly government-authorised and are designed to help businesses find storage spaces for their goods without having to pay upfront customs duties and taxes. So, how does all this work out smoothly?
The Process
When products or goods arrive at a customs warehouse, they are duly given the status of ‘in bond’, which means they are held under the direct supervision of customs officers until a specific time frame. The businesses should also meet specific requirements as regulated by the customs authorities.
Such an arrangement offers flexible options for companies helping them to defer customs duty and taxes until the time when goods or products are released from the bonded warehouse. You may notice some differences when compared with FTWZ facilities across India.
A customs warehouse can save your time and money in different ways:
- Improving Cash Flow – Bonded warehouses let you decide when you want to pay customs duty. You can delay the payment till the goods have been moved from the warehouse for local consumption can be seen as a major monetary perk. This can allow companies to manage their cash flow conveniently and store imported goods and commodities in secure locations before payment of import-related tariffs.
- Workable Stock Management – One more benefit is that it gives an additional leeway for stock management. Customs warehouses allowed for flexible choices in inventory management and allocation of storage space for companies. This can aid businesses in aligning their stock management processes and successfully cutting costs by storing old products or goods.
- Safety Features in Bonded Warehouses – Customs-bonded warehouses offer a good layer of protective cover for the different types of items they hold. Customs officers are the ones who regulate and monitor such facilities to stop loss or damage to the products or merchandise. Bonded warehouses also provide the best climate-controlled storage units and management of hazardous products.
FTWZ & Bonded Warehousing Facilities
While both provide supply chain efficiency, some feel customs warehouses offer enhanced supply chain management over free trade warehousing zones in India. Businesses can cut down on costs, save fuel money and enjoy reduced delivery times for the import and export of goods by choosing bonded warehousing places that are closer to prime transportation hubs.
Long-Term Commitments Delivered by FTZ & Bonded Warehouses
Both customs warehouses and FTWZ are ideal for long-time storage purposes. For a minimum of 5 years, clients of bonded warehouses are free or exempt from having to pay customs duty fees. Importers can feel less stressed and think about saving time, effort, and money by storing goods in warehouses with long-term benefits. Strategic warehousing plans can also limit their frequent travel to suppliers.
Bonded Warehouses & Storage of Restricted Commodities
Customs warehouses are secure locations for keeping restricted goods and commodities. Such goods require heavy paperwork and legal regulations when they are imported into a country. Importers have a limited timeframe to wait for the legal papers to be issued before they start warehousing these restricted goods. Businesses using customs or bonded warehouses enjoy 5-year freedom from paying customs duty. They can import and store their commodities there for a long duration until they finish completion of the important legal paperwork.
Assurance of Quality Storage
Bonded warehouses can store goods for an indefinite period of time without compromising on their quality. They offer climate-controlled high-tech warehouses, advanced technology cold storage freezers, and also dry storage units are made available on customer demand. From normal to restricted goods, everything can be stored safely in a bonded or customs warehouse storage facility.
Bonded warehouse is a great option for perishable goods and items or those items that will only survive in a specifically controlled environment. Just like a free trade zone warehouse, you can consider goods storage in a bonded warehouse for as long as you want without getting stressed about the goods getting damaged or deteriorating due to unsafe or poor quality environment.
In the case of free trade zones in India, you may consider the services of top-rated FTWZ facilities such as OSV FTWZ, which includes duty deferment, tax incentives, low-cost options, high-end distribution channels, and more. FTWZs are known to aid foreign entities expand and enter the complex Indian market without the need for setting up a distinct company or deal with Indian government officials and tax systems.