If you’re involved in international trade, then you are probably familiar with paying duties and/or taxes. Did you know there are customs bonded warehouses where imported goods can be stored without paying duties or taxes for a certain period? As government-licensed facilities, customs bonded warehouses essentially help businesses manage cash flows by deferring the duty costs until goods are ready for release into the market. These warehouses help align storage time with market demand.
Interesting Facts About Custom Bonded Warehouses
Customs bonded warehouses operate with strict oversight. They adhere to customs regulations. Available for use by any entity doing international trade, importers, exporters, wholesalers and manufacturers are just some examples of who might use such warehouses.
Bonded warehouses utilize the regulatory supervision of the country’s customs agency. Non-bonded warehouses expect importers to pay taxes on goods received and those goods must be inspected immediately. Customs bonded warehouses, however, allow for goods to be held until duties and inspections are addressed– and exporters can often defer payment of duties and taxes until such goods are purchased, thus saving them money.
Customs bonded warehouses are typically used by international businesses who want to store goods long term in different areas of the world such that their goods are closer to the end-user. Oftentimes importers are able to develop and maintain relationships with local vendors, and value added services such as labelling or packaging may be involved to prepare goods for the local market.
In essence, customs bonded warehouses are meant to help simplify international shipping processes and supply chain procedures.
Affiliated Warehouse Companies can help you find U.S. customs bonded warehousing where you can store imported products without initially paying duties– instead you pay duties when the products are shipped. For more information about U.S. customs bonded warehousing, and to receive a list of rates, please call Affiliated Warehouse Companies at 888-865-1150.
