Bonded Goods and Shipment
The shipping process requires the sender to submit all the necessary documentation and pay certain customs charges, such as duties and taxes. If the shipper does not have the capacity to settle them at the moment or opts to do so later, the goods can be stored in a bonded warehouse until such time that the obligations are ready to be submitted or paid.
If you are looking into bonded warehouses, you’ve come to the right place. Here’s a quick guide on bonded goods and shipments, as well as a brief definition of what bonded cargo is.
What are Bonded Goods?
A bonded shipment or bonded goods are items that are subject to import duties and taxes. In order to avoid paying these charges, the importer may choose to ship the goods through a bonded warehouse. This means that the goods will be stored in a secure facility until they are ready to be shipped to their final destination.
What is a Bonded Shipment Warehouse?
Bonded warehouses are typically used to store goods that are waiting to be exported. This allows the importer to avoid paying duties and taxes on the goods until they are ready to be shipped out of the country.
In order to ship goods through a bonded warehouse, the importer must first obtain a bond from a surety company. The bond guarantees that the duties and taxes owed on the goods will be paid once they are exported.
Once the bond is obtained, the goods can be stored in the warehouse until they are ready to be shipped. When the time comes to export the goods, the importer must provide proof of payment of the duties and taxes to the customs authority to obtain a release for the goods.
Documents Required for Bonded Storage of Goods
To store goods in a bonded warehouse, businesses must submit certain documentation to Customs and Border Protection (CBP). This includes a Bonded Warehouse Proprietor's Application and a surety bond. Businesses must also provide CBP with an inventory of the goods to be stored in the warehouse.
The inventory must include the following information:
- A description of the goods
- The quantity of the goods
- The Harmonized Tariff Schedule (HTS) classification number for the goods
- The value of the goods
- The country of origin of the goods
The surety bond must be in the amount of $50,000 and must be issued by a company that is approved by the Department of the Treasury.
Advantages of Bonded Warehouses
Bonded warehouses are special storage facilities where imported goods can be stored until they are ready to be released into the market. Goods stored in bonded warehouses are not subject to import duties or taxes, making them an attractive option for businesses seeking to minimize costs. In addition, bonded warehouses provide greater security and control over inventory, which can help to prevent theft and fraud.
Disadvantages of Bonded Warehouses
While the advantages outweigh the cons, bonded warehouses can still present certain challenges, including:
- They require a high level of security, which can be costly.
- They are subject to government regulation, which can be burdensome.
- They may not be available in all locations.
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