What is Customs Bonded Warehousing & its Importance - PowerPoint PPT Presentation
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What is Customs Bonded Warehousing & its Importance
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In international trade, customs duty is one of the most expensive in cost, which is why some enterprising people considered doing customs bonded warehouses for trade. Read the blog post for more information. – PowerPoint PPT presentation
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Title: What is Customs Bonded Warehousing & its Importance
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What is Customs Bonded Warehousing And Its
Importance
- Customs duty is a major expense in international
trade and this is the reason that some
enterprising people came up with the idea of
customs bonded warehousing. The warehouse itself
is a facility in which the goods imported into
the country are stored for safe keeping. - The cargo can be stored in the customs bonded
warehouse for up to 5 years. Here the cargo can
also undergo manufacturing operations and no
customs duty has to be paid for this purpose. The
owner of the customs bonded warehouse incurs a
liability when the goods are brought to the
warehouse. The liability in turn is protected by
a warehouse bond. When the goods are vacated from
the warehouse the liability no longer exists. - The goods may be vacated from the warehouse for
the following reasons - In order to provide supplies to aircraft or ships
- In order to be destroyed under the rules and
supervision of the authority taking care of the
international trade. - In order to be exported
- To be consumed within the country which has
imported the goods - Importance of customs bonded warehouses in
international trade - Customs bonded warehousing plays an important
role in the import procedure and allows the
businesses to operate smoothly without any
glitches. The owners of the warehouses usually
provide the extra services like managing the
inventory and cash flow on behalf of the
importers. Other than merely storing cargo the
warehouses also often aid in import of goods
without the consequences of custom delay or when
the delivery of the goods takes too long due to
ongoing negotiations. - The reasons why customs bonded warehouses are
important for importers - The security of the goods and containers is
assured - The importers can enjoy duty free storage
- The goods are stored in safe facilities
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