A customs-bonded warehouse may sound like an unnecessary expense. However, it has several advantages over a non-bonded warehouse that makes it worth considering. So, if you work in international trade, you must be aware of the following advantages:

1. Deferred Duties

The great part of customs-bonded storage is that it is cost-effective. When imported products are held in a customs-bonded warehouse, tariffs are delayed until the commodities depart the warehouse. This permits the importer to save money on the storage of their goods regardless of their intended use. This also provides the importer additional time to fulfill the necessary legal paperwork for importing products into the country. Some importers report deferred tax savings of 25 to 30 percent when compared to non-bonded facilities.

2. Long-Term Storage

Customs-bonded storage facilities are excellent for long-term storage. In the US, you can hold goods in a bonded warehouse for up to five years without paying customs duties; in some nations, the storage duration is limitless. Long-term storage eliminates unnecessary travel and enables importers to establish relationships with dependable, trustworthy suppliers.

3. No-Stress Relationship

Keeping products in a customs-bonded warehouse relieves merchants of stress, and finding a certified warehouse will ease the storage and shipment of international commodities. There is no rush with documentation, payment, or inspection; if demand is low, products can be stored for years. On the other hand, non-bonded warehouses will destroy stored items due to late payments and improper documentation.

4. Ideal for Storing Restricted Items

Customs-bonded storage facilities are ideal for keeping banned items. Importing restricted items requires more documentation and legal procedures than importing common goods. Regrettably, for importers, there is a limited amount of time during which restricted items can be held in a warehouse prior to the approval of the necessary documents. Customs-bonded warehouses are excluded from this probation term. As a result, importers can keep restricted products for up to five years while filing the necessary paperwork, which is similar to duty deferral.

5. Perfect for Worldwide Shipping

Foreign shippers can also benefit greatly from the convenience of a customs-bonded warehouse. A business can import goods to a customs-bonded warehouse anywhere in the world and keep them duty-free until further notice.

At the end of the day, there are numerous reasons why a company would prefer a bonded warehouse over any other option. Of course, your decision will be unique to you and your company, but hopefully this list will help you understand the value of having a customs warehouse.

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