What are Bonded Warehouses and Major Benefits of Bonded Warehouse?

1. WHAT ARE BONDED WAREHOUSES AND THE MAJOR BENEFITS OF BONDED WAREHOUSE? 1

2. Introduction The global warehousing market as well as services of warehouse storage and distribution in Goa are always expanding to meet the demands of the industry, particularly the e-commerce business. The industry heavily relies on what is popularly known as bonded warehouses also known as bonds. A bonded warehouse is a place where imported goods that are yet to be cleared by customs are stored. In bonded warehouses imported goods are segregated, cleaned, stored, packaged, or sorted without the need to pay import duties. In a bonded warehouse one is permitted to defer payment of duty as well as any other taxes due until these imported goods are distributed in the market for sale. Bonded warehouses bring a lot of cheer for businesses that carry on trade across diverse jurisdictions by providing significant benefits which we discuss below. 2

3. PAYMENT OF DUTY CAN BE DEFERRED The biggest advantage and a big financial breather for businesses is the fact that bonded warehouses help save taxes. Taxes on goods are to be paid only when the goods leave the warehouse and not during storage. This gives businesses plenty of time for per-sale formalities and processes. If you only export these goods, then you do not have to pay taxes and save tax there too. With this big reduction in tax expenses, businesses can increase their cash flow during the sale process. LEAVES YOU WITH A LOT OF HAPPY CUSTOMERS Facilities at bonded warehouses in Goa offer customers the opportunity to stock goods well in advance of their demand. This allows businesses to store goods close to places of delivery that too without having to pay any taxes. Once the demand arises, the businesses can then assure speedy delivery to their clients who are always happy with quick service. 3

4. MEETS THE REQUISITES OF QUALITY ASSURANCE PRESCRIBED BY THE INDUSTRY Bonded warehouses are well equipped to store various goods without any compromise on quality or damage to goods. With the use of temperature-controlled facilities, dry container services, bulk storage facilities and so on bonded warehouses are continuously providing much-needed support to the logistics business in the country. LOCATED CLOSE TO PORTS Bonded warehouses are located very close to the ports. Goods that are imported are then stored in these bonded warehouses thus easing the process of delivery of goods. Faster deliveries with low logistical expenses are one of the prime benefits of storage in bonded warehouses. It also saves you transportation costs and lessens the chances of damaging goods in transit. 4

5. WORKS PERFECTLY FOR INTERNATIONAL SHIPPING Bonded warehouses play a major support role in imports and exports of goods. When it comes to importing, the goods can be stored in warehouses for up to 5 years. Tax is to be paid on it only during transit outside the state. Similarly, when it comes to exporting goods, merchants hold goods to conduct asset consolidation before the commodities are exported once again. These products are under the supervision of customs and there is no tax liability on them. Bonded warehouses are very advantageous for those businesses that are expecting an increase in demand for their goods and so are looking for storage options to meet the right supply requirements. Bonded warehousing plays a very important role in the logistics industry with several financial and logistic benefits. Investing in the services of the best logistics service provider in Goa saves time and money. 5

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