Bonded warehouse
| Bonded warehouse |
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| See also |
Bonded warehouse allows to storage the product, which are from other country in this way that companies do not have to pay export fees and value added tax while they will not sold them on topical market goods and services. When some business intend to deliver back the product which are on the bonded warehouse, they do not have to make a payments for duty (Galchhaniya, Iyer R, 2018).
Benefits
Benefits which are result from bonded warehouse (Manresa, 2010, s. 210):
- Suspension, through which company can avoid duty pay,
- It is easier to set a bonded warehouse in place which company dispose, than a foreign-trade zone,
- Also, the charges are lower, when there is a need to set and function this type of storage goods compared with foreign-trade zone,
- Product, which are on the describe concept, can be almost always transported to the other bonded warehouse.
Inconvenience
Inconvenience which are result from bonded warehouse (Manresa, 2010, s. 210,211):
- Restriction, which do not let for some maneuver for merchandise, for example production is prohibited,
- It is possibility to store the goods, only at a certain time, this period is five years,
- In case of destruction the goods and the loss, there is no reduction for duty, company have to make payment for totality consignment,
- There have to be some kind of protection to stored merchandise.
Division of the bonded warehouse
The bonded warehouse can be divided into twelve classes (Manresa, 2010, s. 203). To this subject it can be distinguished three main type of bonded warehouse. It is: self-owned bonded warehouse, public bonded warehouse and export bonded warehouse (De Toni, 2016, s. 236). The first of them mean that business set a bonded warehouse, exclusively for yourself. Public bonded warehouse can be understand as a possibility, obtained through the Customs to have influence for this type of storage goods. The last items means that the merchandises are waiting for receiving and cannot be delivery through deficiency information data (De Toni, 2016, s. 236).
Described subject is currently intended to storage for goods. A lot companies store their merchandise in this way, what is caused by companies forethought connected with the change price's on a worldwide. Moreover, the organization has the option to not make a payment, which is related to duty and may to control rightful business (De Toni, 2016, s. 236).
Composition the bonded warehouse
Bonded warehouse consist of: bonded warehousing, international logistic distribution and simple processing and value-added service (Manresa, 2010, s. 203).
Difference between foreign trade zone
In contrast to foreign-trade zone in bonded warehouse, the company cannot do produce goods. Another form of maneuver related to merchandise is possible. For example, unpacking the commodity and re-placing it on the package (Manresa, 2010, s. 203).
In this type storage the merchandise is impossible keep the products which are flammable, difficult to maintain and the transport to country is forbidden. Although in some case are special exceptions (Hinkelman, 2003, s.203).
References
- De Toni A. F., (2016), International Operations Management: Lessons in Global Business, Gower Publishing.
- Galchhaniya A., Iyer R., (2018), Practical Guide to SAP GTS Part 3: Bonded Warehouse, Foreign Trade Zone, and Duty Drawback, Espresso tutorials.
- Hinkelman E. G. (2004) Importers Manual USA: The Single Source Reference Encyclopedia for Importing to the United States, World Trade Press.
- Keller S.B., Keller B.C., (2014), The Definitive Guide To Warehousing Managing The Storage And Handling Of Materials And Products In The Supply Chain, Pearson Education.
- Manresa M., (2010), How to Open and Operate a Financially Successful Import Export Business, Atlantic Publishing Group.
- Murray M., (2011), Warehouse Management with SAP® ERP: Functionality and Technical Configuration, Galileo Press.
- Wulf D.W, Sokol J.B., (2005), Customs Modernization Handbook, The World Bank.
Author: Anna Skórka
