What is a Bonded Warehouse and When Is It Necessary for Ocean Freight Shipping?

Posted by Sujit BIswal on February 27th, 2023

If your ocean freight shipment involves crossing a national border, there’s a chance that you may need to use a bonded warehouse. Depending on the goods and countries involved, this can be an involved process that requires a careful understanding of customs regulations. Learn what you need to know about bonded warehouses here.

What is a Bonded Warehouse?

A bonded warehouse is a secure storage facility authorized by Customs and managed by a customs broker. It allows shipments to remain in storage without paying duties until they enter the country, ensuring that companies don’t end up out of pocket for unexpected taxes. When ocean freight shipping across international borders, your shipment may require a bonded warehouse if it’s not delivered to its destination immediately.

When Is A Bonded Warehouse Necessary?

A bonded warehouse is necessary if the shipment arrives at a port before the importer is able to take possession of it and transport it to its final destination. In this case, the goods are stored in the bonded warehouse while they wait until they can be shipped out. Goods may also need to be stored in a bonded warehouse when there is a particular duty or tax that needs to be paid at the time of delivery. This holds true, especially for hazardous cargo, such as fuel or chemicals.

What Types of Goods Are Suitable for Storing in a Bonded Warehouse?

Goods stored in bonded warehouses are usually items that are subject to higher taxes or high levels of regulation. Permissible items may include alcoholic beverages, tobacco products, pharmaceuticals or medicines, automotive parts, electronics, and fuel. Generally, goods in bonded warehouses can remain there indefinitely until they are released by the relevant customs authority.

Who Controls and Manages the Goods In Bonded Warehouse?

Bonded warehouses are controlled and managed by both the warehouse proprietor, who is responsible for security and compliance with regulations, and customs officers, who are responsible for the taxation of imported goods. This ensures that all necessary taxes and duties are collected from the importer when the goods enter a country or region. The use of a bonded warehouse also safeguards against any illegal smuggling or trade of contraband materials+.

What Requirements Must be Followed When Shipping Goods to a Bonded Warehouse?

To ship goods to a bonded warehouse, certain requirements must be met. The importer is responsible for providing documentation that includes commercial and customs invoices, bills of lading, and any other documentation required by the local port authority. In addition, the goods must be secured in a manner that prohibits unauthorized access or removal. Additionally, all shipping containers must have seals on them that indicate whether they have been opened since being sealed at the origin.