Step-by-step explanation:
There are many advantages associated with using a bonded warehouse. Here are just some of the benefits:
You can defer or avoid duty and tax payments
You can defer VAT payment and other duty taxes in a bonded warehouse until the goods have been removed and shipped. This can provide you with breathing room and space to carry out additional pre-sale activities. Additionally, if you export these goods, you can avoid these costs entirely.
Companies have reported tax cost savings of 25-30% due to utilising bonded warehouses.
Storage can be long term
Most bonded warehouse facilities can agree to store your goods for up to five years or more. This can be useful if work is required to satisfy import licensing requirements or demand isn't as high as expected. With a bonded warehouse, you can store your goods until you've met the requirements or demand has increased.
You can improve service for your customers
By leveraging bonded warehouses, you can order goods in advance of anticipated demand. As goods are stored closer to the customer, you can quickly deliver and offer a better overall experience.
The quality of your product can be preserved
Bonded warehouse facilities have been equipped to store all kinds of products for as long as necessary while maintaining quality. For example, many bonded warehouses contain dry containers, deep-freeze systems, temperature control facilities, and bulk storage facilities.
Bonded warehouses can keep your products safe and secure
In addition to regular safety measures like CCTV, goods in a bonded warehouse must be fully documented. Security personnel monitor the space 24 hours a day, so you don't need to worry about your cargo. Bonded warehouses are subject to detailed assessment and regular auditing, so you can feel confident you're working with a reputable organisation.
Your goods are stored closer to ports
Most bonded warehouses are located near major ports. This allows companies to store goods at the port of entry until they are ready to be distributed. Utilising these bonded warehouses can create savings across the entire supply chain by reducing lead time, transport cost, and potential damage.