Saturday, October 16, 2021

What is Bonded Warehousing?

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In the flow of world transportation, the circulation of goods between many countries are required to Customs of current countries to verify and process Customs procedure to avoid any illegal, dangerous or unqualified goods to enter the country.

1. What is bonded warehousing?

Bonded warehouse meaning’s fairly simple, it can breakdown into: A specific and secured area to contain goods which needed to comply with customs duty before importing to desired country

Bonded warehouse are able to be built both by authorized offices and enterprises, which are certified to establish bonded warehouse and following strictly to guidance and standards in Customs regulations of the country

The limited timespan for archiving in bonded warehouse depends greatly on the targeted country, for example, bonded warehouse in Vietnam can remain up to 12 months and extendable to 6 months. After the end of the archiving period, if the owner of the goods did not show up to take on required procedures and fees, country’s custom is going to demolish the cargo following by regulations

In addition, the timespan with specific goods acts differently which has specific limited period such as: Foods, Temp-import/re-export goods, etc. 

2. Bonded warehouse advantages and disadvantages

Pros

Your goods are secured

Bonded warehouses are built with strictly supervision of country’s customs to gain maximum security. Normally, bonded warehouses are operated by supervision, goods management systems. Business’s cargoes are remained intact and precision when import/export on demand

Furthermore, bonded warehouses are built on the base of safe areas and under control by Security agencies, which exclude from any drawbacks

Deferent the fees for archiving cargo

In many countries, bonded warehouse’s storage fees are due when such cargoes being brought to other places to conduct sale. This is a large advantage for any businesses to loosen the pressure of costs before having officially imported to the country

Quality assurance for Goods:

Bonded warehouse are fully functional with equipment, facilities able to preserve any kinds of goods even with special requirements goods from dry air, frozen, cooling, liquify; you name it, bonded warehouse has it

This is one of the uniqueness of bonded warehouse to preserve quality stability for your business to consider when choosing which kind of storage you want 

Located in entrepôt of the country

As mentioned about particular locations of bonded warehouse has, this kind of storage situated near center hubs of the country such as airports and harbors with large number of visitors from locals to foreigners. 

This should be considered as an introduction or sneak peek for companies to popularize the products before entering the country 

Cons

New taxable goods to be archived 

Goods that are not on the taxable list is not going to be accepted to bonded warehouses. Therefore, this is a point that businesses should pay attention to the taxable goods of the exporting country to avoid unnecessary troubles. 

Furthermore, it should be noted that some taxable goods still be denied to bonded warehouse including: counterfeit, hazardous for human and environment, prohibited to export/import goods

Time-limited goods

The duration of storage in bonded warehouses for each country can vary, usually ranging from 1-2 years or especially in countries like the US, UK can be up to 5 years. But all have a certain deadline before being destroyed if the owners does not show up to receive the goods 

Need identification from the local customs office 

Before being stored in bonded warehouses, the enterprise’s products require customs clearance through a type of permit specified in that country. 

3. Things you should know about Vietnam bonded warehouses 

Type of goods stored in Vietnam’s bonded warehouse: 

  • Imported goods awaiting completion of procedures and preparing to enter the Vietnamese market o Transit goods prepared to be exported to a third country 
  • Goods prepared for export, customs procedures have been completed 
  • Goods must be re-exported – The term of leasing bonded warehouses in Vietnam: Not exceeding 12 months and being extended once every 06 months Service activities are performed in warehouses: 
  • Consolidation of packages, packing, splitting, packing, classifying and maintaining goods o Transfer ownership 
  • Take samples of goods to satisfy customs clearance requirements 
  • If the goods are chemicals, petroleum, if they meet the requirements, it is possible to prepare or change the product category. 

Types of customs procedures in Vietnam 

  • Goods from abroad are stored in bonded warehouses 
  • Goods from a non-tariff zone or inland are imported into a bonded warehouse 
  • Goods exported from bonded warehouses to foreign countries 
  • Goods exported from bonded warehouses for import into inland or in non-tariff zones 
  • Goods from one bonded warehouse to another

4. Bonded Warehouse companies in Vietnam

Currently, bonded warehouses in Vietnam not gaining much attention because of their specificity, strict regulations on storage conditions, operation management at warehouses. 

Bonded warehouses are mainly provided by large logistics enterprises with experience and large operating capacity to meet the needs of partners around the world. 

ALS with many years of experience with a synchronous infrastructure system spreading across the country including cargo warehouses, bonded warehouses, transportation systems, off-terminal airport systems. With our main advantages, ALS can meet the basic to advanced requirements of customers for storing all kinds of items in both normal storage conditions or specified with cold and cool storages.

 ALS’s bonded warehouse location is located at ICD My Dinh, the busy trading place in the North of Hanoi, easy to transport to the Northern cities by road, nationwide and internationally at the airport. Noi Bai

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