Bonded Warehouse

Bonded warehouse is a warehouse approved by customs for the exclusive storage of goods for which customs duties have not yet been paid. During storage in a bonded warehouse, goods may temporarily be exempt from import duties, value-added tax, and other taxes and fees, and may undergo simple processing such as packaging, grading, mixing, and labeling. Use cases include: when an importer has not yet determined whether the goods will be sold domestically or re-exported, using a bonded warehouse to defer tax payment; cross-border e-commerce storing goods in bulk in a bonded warehouse and then clearing and shipping them in batches after orders are generated; and goods being transshipped through a bonded warehouse in entrepot trade. Points to note: the storage period for goods is usually one year and may be extended upon application; if the goods are ultimately sold domestically, the taxes due and deferred tax interest must be paid retroactively; if they are re-exported, they are exempt from tax. Unlike a "bonded zone," a bonded warehouse only has a warehousing function, whereas a bonded zone also permits broader business activities such as processing and trade; unlike an "export supervised warehouse," the latter is used to store goods for which export procedures have already been completed. Enterprises must comply with customs supervision regulations and regularly reconcile inventory.