Bonded Warehouse is a type of active bonded area where foreign products are set up. It is a patented area designated by the commissioner of customs. A bonded warehouse is generally located near ports or airports, and it is designed to provide temporary storage for goods that are subject to import duties or other taxes.
When goods arrive at a bonded warehouse, they are placed under customs control and cannot be released until all import duties and taxes are paid. This allows importers to defer payment of taxes and duties until the goods are released from the warehouse. In addition, a bonded warehouse provides provide a secure environment for the storage of goods and may offer additional services such as inventory management, packing, and labeling.
One of the main advantages of using a bonded warehouse is that it allows importers to avoid paying import duties and taxes until the goods are actually released for distribution or export. This can help to reduce the cost of importing goods and improve cash flow for businesses. In addition, bonded warehouses provide a level of security and protection for goods that may be subject to theft, damage, or other risks while in transit or storage.
Source : ChatGPT