BONDED & NON BONDED WAREHOUSE

As you continue to grow your import and export activities, we understand that choosing the right type of warehouse is essential to managing both cost and compliance effectively. We would like to briefly share the key differences between bonded and non-bonded warehouses, so you can make an informed decision based on your needs.

1. Bonded Warehouse

Definition:A bonded warehouse is a secure facility licensed by customs authorities where imported goods can be stored without paying duties or taxes until they are officially cleared for entry into the country.

Key Features:

• Customs duties and taxes are deferred until goods leave the warehouse.

• Ideal for cargo that is:

• Awaiting buyer confirmation

• Meant for re-export

• Imported in bulk to reduce tax exposure

  
  

Examples of Goods:

• Imported electronics, alcohol, fashion products

• Goods in transit for transshipment

  
  

Benefits:

• Helps manage cash flow by deferring taxes.

• Allows labeling, repacking, inspection under customs control.

• Secure and regulated by government authorities.

  
  

2. Non-Bonded Warehouse

Definition:A non-bonded warehouse is a standard storage facility where goods have already been customs cleared and duties & taxes are already paid.

Key Features:

• Only domestic or duty-paid goods can be stored.

• No customs officer oversight required.

• Faster access and movement of goods.

  
  

Examples of Use:

• Local distribution centers

• Storage for e-commerce or retail stock

• Ready-to-ship inventory

  
  

Benefits:

• Quick turnaround for local delivery

• Easier logistics for domestic sales

• Lower regulatory requirements

  
  

⚖️ Summary Comparison

Feature	Bonded Warehouse	Non-Bonded Warehouse
Duties/Taxes	Deferred until clearance	Already paid
Customs Supervision	Yes	No
Storage for Imports	Yes (before clearance)	Only after clearance
Ideal For	Re-exports, tax savings, bulk import	Local distribution, fast delivery
Processing Allowed	Yes (under customs rules)	Yes