Warehousing & Supply Chain
Bonded Warehouse Explained: Defer Duty on Imports
4 min read
A bonded warehouse is a secure facility, approved by customs, where imported goods can be stored without paying import duty until they are released. It is a useful tool for managing cash flow and re-exports.
How bonded warehousing works
Goods are placed in the bonded warehouse on arrival, and duty is deferred while they remain there. Duty becomes payable only when the goods are cleared for home consumption. If they are re-exported instead, import duty may be avoided altogether.
When it helps
- Deferring duty to ease cash flow until goods are sold.
- Storing goods intended for re-export.
- Holding stock close to market before final clearance.