Customs warehouses play an important role in the supply chain and movement of goods, especially in international trade activities. They serve as strategic intermediaries that allow companies to store, process and distribute their goods efficiently while delaying or avoiding the payment of import duties and VAT. Here are some key roles that bonded warehouses play in the supply chain and movement of goods:
Storage flexibility: bonded warehouses offer businesses the flexibility to store goods indefinitely for a period of time without the need to complete customs formalities immediately. This enables efficient planning of storage and better adaptation to fluctuations in demand.
Duty-free transfer: Within a bonded warehouse, goods can be transferred, sorted or further processed without customs declarations or duties being incurred. This allows for efficient use of warehouse space and better allocation of goods for shipment.
Delay of duties: The main advantage of a bonded warehouse is that import duties and VAT are not immediately due during storage. This improves companies’ liquidity and offers the possibility to store goods more cost-efficiently.
Simplified logistics: bonded warehouses can act as distribution centres from which goods can be quickly shipped to destinations without additional customs clearance.