The digital age has made it possible for businesses, both large and small, to easily sell/purchase their wares overseas. Unfortunately, while the internet can do many things, it cannot eliminate the long and sometimes complicated customs process. This is where bonded warehouses come in.
What is a Bonded Warehouse?
A bonded warehouse is a secure facility that stores goods that are subject to import duty and/or Value Added Tax (VAT). These fees are deferred until the goods are either sold or removed from the bonded warehouse.
Bonded Warehouses For the Win!
A bonded warehouse is ideal for those who sell or import goods, like the suppliers of spirits, tobacco, wine, and food. Some of the advantages that they provide include:
- Certainty of supply: Goods can be imported and stored before peak season starts. This makes it possible for orders to be fulfilled without delay, even in times of high demand.
- Specialized facilities: Bonded warehouses tend to have large deep freezers that are perfect for those who need to store wine and other types of alcohol.
- Long-term storage options: Most bonded warehouses offer long-term storage. This makes it possible for entrepreneurs to store their product until there’s a demand for it.
The Bottom Line
Those who import goods that are subject to restriction are well-acquainted with the hassle of dealing with customs. A bonded warehouse gives savvy entrepreneurs the ability to store their items until they are released, sold, or until another storage facility is found. Plus, because of deferred payment of fees, it can save money as well.
At DGD Transport, we take a lot of pride in both our proprietary technology (TRUCK HUB), which allows constant tracking and direct communication with drivers, as well as our dedication to transparency at all stages of the shipping process. We invite you for more information and to learn why we should be your cold storage logistics partner of choice.
