The world has become one big market and traders have benefitted from new opportunities and applying efficient methods to thrive and sell. Having a warehouse for safely storing valuable goods is a link most companies, importers, and exporters, count on to fulfill their demands. Now the question is: what kind of warehousing do you need? Our guide will share all the details for considering and selecting the right choice.
A warehouse is a secure place to store and manage products according to orders that are underway. All imported freight must be inspected and approved by Customs agents before it can be delivered to its destination, being, in this case, a storing facility.
When using a bonded warehousing service, an importer will sign a bonded agreement, hence the name. Terms are established so the importer has to pay the duties only when the goods are removed from the storage. To get approved, bonded warehouses have to designate a specific area for the storage of the goods and also prove their financial and operational integrity. Once approved, the bonded warehouse has to post a customs bond and agree to the various customs inspections. Most customs bonded warehouses are owned and coordinated by the government but private facilities are also available. If you considering partnering with a private-owned warehouse, make sure they are certified by the customs office.
On the other hand, the non-bonded warehouse is a storage space for goods on which the duty is already paid. The main reason why importers would choose a non-bonded warehouse over a bonded warehouse is to use the goods in domestic markets, rather than to re-export. Upon its entry, duties are to be paid before it reaches its final destination. No deferred payment is involved and these are supervised by port authorities.
Why is having a bonded warehouse a great advantage for your supply chain? For starters, in March of 2020, the US reported that imports stand at $232.2 Billion and exports at $187.7 Billion. The booming globalization of markets needs Bonded Warehouses to encourage budding entrepreneurs to enter this business.
What’s the bottom line? Warehousing services are differentiated in the import-export field by four factors: estimated time held in storage, deferred duties, managing restricted goods, and the scope of international shipping. Defining each of these factors will help you decide the kind of service most beneficial for your demand and budget.
Looking for long-term storage? Bonded warehousing is the way to go. In the US alone, products can go long as five years without worrying about duties. Many countries have established storage periods to infinity. Unnecessary travel and payments are avoided with this choice of storage and allow you to develop a good professional relationship with their clients. On the other hand, you are saving on additional costs that are generated in a non-bonded warehouse.
Customs compliance by bonded warehousing is made possible through the payment of deferred duties which means that it is possible to save money with this model of warehousing. How? These duties are applied until goods leave for the final destination and that way you can buy time to complete all the legal framework needed, essentially to export goods and fulfill your demand. In comparison to non-bonded warehouses, you can save up to 30% in terms of deferred taxes in this field.
There are many benefits of investigating and finding the right logistic service for successful import-export operations. If you want to find out more about how you can save money, and time and simplify your chain supply with the best strategies, the G-global family is ready to help you meet your goals with efficiency. Find a trustworthy warehousing partner with G-Global.