CFS Warehouse

Some Advantages of Storing Goods in a Bonded Warehouse

1. Long-Term Storage

Customs bonded warehouses are great for long-term storage. In the United States, you can store with one for up 5 years without paying Customs Duties; in some countries, bonded warehouse storage periods are indefinite. Storing long-term prevents the need for unnecessary travel and allows importers to develop relationships with reliable and trustworthy vendors.

2. Deferred Duties

The great thing about Customs bonded warehousing is that it saves money. When goods are imported and stored at a Customs bonded warehouse, the duties are deferred until the goods leave the warehouse. This allows the importer to save money on storing their goods regardless of what they intend to do with the cargo. This also gives the importer extra time to complete the legal legwork needed to import their goods into the country. Some importers record saving 25-30% in deferred taxes over comparable non-bonded warehouses.

3. Ideal for Storing Restricted Goods

Customs bonded warehouses are perfect for storing restricted goods. Importing restricted goods involves much more paperwork and legal legwork than importing conventional goods. Unfortunately for importers, there is a strict period of time during which restricted goods can be held in a warehouse before the proper paperwork is approved. Customs bonded warehouses are exempt from this probation period, which means, similar to duty deferment, importers can store restricted goods for up to 5 years while they file the necessary paperwork.

4. Convenient for International Shipping

One of the most significant advantages of a Customs bonded warehouse is how convenient it is for businesses that ship internationally. A business can import goods to a Customs bonded warehouse across the world and store it there until further notice without paying any duty fees.

The importer can then take one of two routes:

Importing

Goods can be stored at the warehouse until there is an increase in demand for the goods, at which point the importer will pay duties on the goods as they are delivered to their destination within the country of holding. The goods do not need to be imported all at once.

Exporting

Importers can store goods at the warehouse to facilitate the consolidation of assets before being exported again. When the consolidated goods are exported out of the country of holding, the importer isn’t charged duty fees because the goods stayed under the surveillance of Customs—this prevents double taxation.