Bonded Goods

What is Bonded Goods?

Bonded goods are imported goods that have not paid customs duties, taxes, and other import fees. They are stored in a bonded warehouse or area under customs supervision. Through this arrangement, importers can defer payment of customs duties and taxes until the goods are released for domestic consumption or re-export. The main feature of bonded goods is that they can be stored, processed, distributed, or transshipped while in a bonded state, helping companies reduce costs, improve cash flow, and enjoy preferential tax policies.

Storage and supervision of bonded goods

Bonded goods are usually stored in bonded warehouses approved by customs, which are strictly supervised by customs authorities to ensure the safety and compliance of the goods. Bonded warehouses can be government-run or privately operated, but in either case, they must comply with customs regulations. The storage period for goods in a bonded warehouse is usually five years, depending on the customs policies of each country.

The main advantages of bonded goods

1. Deferral of customs duties and taxes: Businesses can pay customs duties and taxes when goods are sold or delivered, improving cash flow management.
2. Flexible inventory management: Bonded warehouses allow businesses to store seasonal goods or slow-moving inventory without immediate customs obligations.
3. Simplified re-exporting: Bonded goods can be easily re-exported to other countries without paying customs duties and taxes, facilitating international market expansion.
4. Safety and compliance: Bonded warehouses provide a secure storage environment and ensure that goods comply with customs regulations, reducing legal risks.

Classification of bonded goods

According to different uses and supervision methods, bonded goods can be divided into the following categories:

• Bonded imported goods: refer to the import of goods by enterprises for storage in a bonded area, without customs clearance for the time being, which can be re-imported or re-exported according to demand.
• Processing trade bonded goods: after importing raw materials, enterprises process and manufacture them in a bonded area and ultimately export them as finished products, enjoying a tax exemption policy.
• Transit trade bonded goods: After entering the bonded area from country A, the goods do not enter the domestic market but are directly transferred to country B for sale. This model is usually used in international transit trade.
• Temporary storage of bonded goods: Used for short-term storage, it is suitable for enterprises to optimize inventory management and the overseas warehouse model of cross-border e-commerce.

The difference between bonded and non-bonded goods

The main difference between bonded and non-bonded goods is the timing of the payment of duties and taxes. Bonded goods do not have to pay duties and taxes during storage, while non-bonded goods have already paid all relevant fees upon import. This difference makes bonded goods more flexible in international trade, especially when delayed payment or re-export is required.

Related FAQs

How long can bonded goods be stored?

The storage duration of bonded goods is typically five years, contingent upon the customs regulations of the respective nations.

What is the customs clearance process for bonded goods?

The customs clearance process includes submitting documents, paying duties and taxes, customs inspection, and final release permission.

How are the storage fees for bonded goods calculated?

Storage fees are usually calculated based on the type of goods, the storage period, and the warehouse’s specific policies.

Can bonded goods be processed during storage?

Yes, bonded goods can be processed during storage, but customs regulations must be followed, and the appropriate permissions must be obtained.