CUSTOMS BONDED WAREHOUSE

Suppose for a moment you are a business owner and have chosen to import items from another country to sell. You will be obligated to bring all the items through Customs and submit certain items for inspection. This can take time and it is possible that you will have to make payments of duty and pay the value-added tax. This can be hard if you are low on equity and aren’t ready to bring your items up for sale. A customs bonded warehouse bond provides you with a solution to these difficult possibilities.

The benefits of a Customs Bonded Warehouse bond

• Using a customs bonded warehouse gives you the option of deferring any payment of duty and value-added taxes until you are ready to sell your items.
• You can store all items until custom paperwork is order and all licensing requirements have been met.
• Most items can be stored with no time limit of removal except items that can spoil.
• You can increase your sales margin by choosing the best time to sell certain items based on a high exchange rate.

Understanding the Bond Side

When placing your items in a customs bonded warehouse you are going to need the supporting bond.

• Depending on the country you will need a bond of about 40 percent of the value of the items stored to secure your merchandise passport.
• You apply for the bond when you apply for the merchandise passport.
• You will need to supply financial paperwork to qualify for the bond and to meet underwriting requirements.
• The bond is your guarantee of payment of duties and all taxes if for some reason you are not able to meet your end of any agreement.

There are many advantages to using a customs bonded warehouse. This option can help you save money for your business. It can also keep you financially secure when money is tight.