What is the Function of a Bonded Warehouse? The bonded warehouse is the space which is in the custody of Customs but space is acquired by the manufacturer and it is locked by customs and the material is kept in bonded warehouse which has been imported by the manufacturer and of which duties are not paid at the time of arrival of shipment are taken out in the bonded warehouse. Duties and taxes are paid at the time of clearance of goods from Bonded Warehouse.
The stakeholders involved in the bonded warehouse operations are mentioned below:
- Customs
- Ports
- Shipping Companies
- Banks
- Clearing Company
Benefits of Bonded Warehouse
- The manufacturer has the option to optimize their cash flow by not paying duties and taxes
- The material can be stored for a long term thus it can also save your stock holding cost
- The manufacturer can store the goods which are restricted in the country until the government allows it to import and further process
- Most of the bonded warehouse good quality equipment to keep the quality of goods in sound condition.
- There is no chance of theft of goods, as it is customs responsibility for goods stored in a bonded warehouse.
- The location of the warehouse is set out by the agreement of the manufacturer as per their convenience.
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