Going into the import and export business involves coordinating multiple moving parts. Arranging shipping and warehousing while keeping up with documentation to pay duties can slow you down. There are advantages of a bonded warehouse that can help you solve some of those challenges.
Contact us to discuss your requirements of Bonded Seal Suppliers. Our experienced sales team can help you identify the options that best suit your needs.
U.S. Customs and Border Protection (CBP) regulates the establishment of customs bonded warehouses. Benefits to using a bonded warehouse may include:
Keep reading to learn more about bonded warehouse advantages and how working with a 3PL provider can be beneficial.
Learn about six ways that bonded warehousing can give your business an advantage and provide you with peace of mind.
Advantages of Bonded Warehouse
A customs bonded warehouse, or simply a bonded warehouse, is one where imported goods can be kept until duty tax is paid. Bonded warehouses are regulated by the CBP. Importers can store merchandise in a bonded warehouse for up to five years without paying the import tax.
This and other benefits may provide importers with financial and logistical advantages. The CBP authorizes 11 different classes of bonded warehouses to cover multiple types of merchandise. Warehouses can be public or private and some can even be used for manufacturing purposes.
Consider six specific ways that bonded warehouse advantages can help you and your business.
1. Long Term Storage Solutions
A common problem in international trade is figuring out where merchandise can be kept. Goods need to be stored for domestic market distribution or for manufacturing to export back out. Dutiable imported goods can be stored in a bonded warehouse for up to five years without having to pay import tax.
This benefit may be beneficial for businesses trying to manage the challenges of international trade during an ongoing global pandemic. Being in bond also locks in the amount of duty tax.
Demand for certain goods has dropped sharply leaving some with an overwhelming amount of inventory.
Store merchandise safely in a bonded warehouse until the market for them picks up again. A business may still make a profit from their imports this way. Otherwise, they may be forced to sell far below value in an attempt to reduce upfront costs.
These long-term solutions are available for a variety of different goods. There are facilities with refrigeration, dry storage, temperature control, and more.
For help with inventory management, check out our article, “How to Manage Warehouse Inventory.”
2. Saving Money
The cost of international shipping keeps going up. At the same time, the cost of getting freight from ports to distribution centers and retailers is also rising. Businesses need to find a way to maximize their profits while keeping products affordable enough to be sold.
Bonded warehousing can help shippers meet that goal in two different ways:
Defer import duties while merchandise is in storage
Avoid import tax on goods that will be exported back out
Each of these can help your business in a different way.
Deferred Import Duties
When merchandise enters a bonded warehouse, the owner of the warehouse assumes a liability, or bond, for that merchandise. Customs duties will not need to be paid until merchandise is withdrawn for domestic consumption in the United States.
Keeping goods that aren’t selling can drag your business down. You’re paying duty and storage up front without turning a profit quickly or at all. Transferring imported inventory to a bonded warehouse can save a company enough money in the short term to survive long-term.
Wait for supply chains and demand to return to their normal behaviors. Your business may then be able to sell your inventory at a profitable price.
Avoiding Double Tax on Import/Export Service
A business that imports to export after manufacture or alteration can also benefit greatly cost-wise. In a non-bonded warehouse, import duties must be paid upon arrival in the majority of cases. Depending on the goods, there may also be an export tax once the items are ready to sell overseas. Payment of import duties is not required for merchandise being sold for export.
Certain classes of customs bonded warehousing allow your business to alter and manufacture imported items without paying the import tax. So long as the items don’t enter the domestic market, the payment is deferred. Double tax is then avoided when possible, providing some companies with 25-30% in tax savings overall.
Perhaps you were using the facilities for storage of items to be sold domestically but have been unable to do so. If demand picks up elsewhere, your business can take advantage and sell for export without paying the import duties.
3. Improve Customer Service
Some product demands are more predictable than others such as seasonal items. Merchandise connected with major holidays or national events can also be predictable.
Because long-term storage is possible at a bonded warehouse, merchandise can be ordered and stored ahead of demand. Having in-demand merchandise already in place may improve customer relations.
Trying to get ahead of next fall’s pumpkin spice craze? Want to have popular jerseys on hand for the FIFA World Cup? Using bonded warehousing services allows you to stock up ahead of time. When the demand goes up, items are sold and distributed in a timely manner, earning your business happy and loyal customers.
See our article on demand planning to see how you can maximize this benefit.
4. Safety and Security
Getting your merchandise into the U.S. is only one step of the import industry. Once it gets here, you need to be sure it will remain at a secure location while awaiting distribution. While any decent warehouse can offer security, bonded warehouse facilities are still a step above. Merchandise stored in a bonded warehouse is under the joint custody and supervision of the CBP and the warehouse owner.
Because of government oversight on the facilities, extra precautions are in place to ensure security of goods and related documentation. Regular audits ensure that these measures remain in place.
Safety and security requirements that must be met by bonded warehouses include:
Providing a regularly updated employee list
Ensuring enough employees are on hand for required maintenance and safety
Having entrances and exits guarded by seals or locks
Allowing CBP officers to conduct searches and reviews at any time without requiring a warrant
Reporting and setting aside merchandise with any broken, missing, or improperly set seals
Separating out incorrectly labeled merchandise
Maintaining auditable inventory records, security measures, and storage conditions
Physical supervision by a CBP official for merchandise requiring a permit
Depending on the class of warehouse, other customs supervision may be required of the warehouse owner. The oversight means bonded warehouses are extremely secure, providing you with peace of mind when importing and storing high-value items.
Secure Storage of Restricted Goods
While excellent for secure storage in general, bonded warehouses are also a unique solution for storing restricted imports. Direct CBP oversight of many bonded warehouse facilities allows storage of restricted goods for longer periods of time than standard warehouses.
Besides the money and security benefits of storing restricted merchandise, the time frame for storage in a bonded warehouse also helps. Restricted goods come with a large and varied amount of paperwork. Haste makes waste. Errors on the documents are likely to get your goods destroyed upon entry and land you with the cost for it.
Reviewing documents for errors may be easier when the pressure to get it done quickly isn’t so bad.
For more Bz1335einformation, please contact us. We will provide professional answers.
However, as with any restricted import, be sure to carefully research before beginning the process. Speak directly with the CBP or get in touch with a customs broker who can guide you through.
5. Near Ports of Entry
Bonded warehouses are usually kept near ports of entry since they deal with imported goods. The CBP has over 300 ports of entry between the continental U.S., Puerto Rico, and the U.S. Virgin Islands.
When shipping to any of these ports, the CBP will likely have a bonded warehouse nearby that can meet your needs. Many of the main import venues in the U.S., such as the Port of Los Angeles, are overwhelmed with shipments. The same can be said of nearby warehouses.
Since bonded warehouses can be found even at less popular ports, you may find a long-term storage solution more easily. A warehouse in close proximity to a port of entry may also save you money on freight forwarding and transloading services.
6. Connecting to Reliable Logistics Services
Bonded warehouses, public and private, rely on logistics services for transport. Many bonded warehouses contract with various carriers and freight forwarders. Bonded warehouse partnerships with logistics services are usually reliable because of the strict regulations.
Owners of bonded warehouses wouldn’t want to do business with questionable carriers. The CBP may be quick to revoke their operating permission in case of a violation.
Bonded warehouses are used frequently with in-bond transactions. An in-bond transaction allows cargo to be moved from port and through the U.S. without paying customs duties. Bonded carriers would be used in these transactions and are regulated in much the same way warehouses are.
Bonded carriers can be:
Common Carriers
Contract Carriers
Freight Forwarders
Private Carriers
Safety and security continue to be priorities outside of the physical location too. Carriers, cartmen, or container stations that handle “in-bond” merchandise must have an Activity Code 2 (C2) Bond from the CBP. The bond keeps them compliant with all the same regulations as a warehouse.
Connect with R+L Global Logistics For Your Warehouse Needs
Moving and storing freight can be expensive. Current events have made those costs even higher and might be making it harder for you to do business.
These six bonded warehouse advantages may help your import business keep growing despite the challenges. Connect today with R+L Global Logistics to help you answer any questions you have about your fulfillment and distribution needs.
R+L Global Logistics can be your partner for 3PL warehousing, fulfillment services, kitting services, and more. Request a quote now and see how our services can help you.
Our Global Bonded Seal Market Report provides an in-depth analysis of the current and future market trends to help your business make informed decisions. This report helps you identify key growth drivers and opportunities in the market, assess competitive dynamics, and explore the segment dynamics and regional market share. It also provides an assessment of the impact of recent developments such as the introduction of novel product offerings and technological advancements.
In addition, our report offers a comprehensive overview of current and future industry trends, including market size estimates, segmentation, and competitive landscape. Furthermore, you can use this report to assess the potential of your business in the bonded seal market by evaluating the performance of over 200 market players. It also helps you determine the most profitable markets to focus on, identify the factors driving the growth of the industry, and gain valuable insights into the market entry strategies. In addition, the report includes detailed analysis of the key market segments, drivers, opportunities, and challenges that will help you better plan and manage your product portfolio.
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Bonded Seal Market report also includes a pricing analysis for each type, manufacturer, region, and global price from 2018 to 2030. This information will help stakeholders make informed decisions and develop effective strategies for growth. The report's analysis of the restraints in the market is crucial for strategic planning as it helps stakeholders understand the challenges that could hinder growth. This information will enable stakeholders to devise effective strategies to overcome these challenges and capitalize on the opportunities presented by the growing market. Furthermore, the report incorporates the opinions of market experts to provide valuable insights into the market's dynamics. This information will help stakeholders gain a better understanding of the market and make informed decisions.
One of the important sections of the research study includes the company profiling of key figures of the Bonded Seal Market . The authors of the report closely analyze all of the leading companies considered for the research study on the basis of different factors such as their main business, gross margin, and markets served. They also take into account their prices, revenue, and production apart from the specification and application of their products. The review period considered here is of nine years.
The research study includes profiles of leading companies operating in the Bonded Seal Market :
KLINGER, Hutchinson, Eastern Seals, Trelleborg, AOK Valve Seal, Gapi Group, Hi-Tech Seals, Dowty Group
Bonded Seal Market by Type
Bonded Seal Market by Application
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Some of the Key Questions Answered in this Report:
Each chapter of the report provides detailed information for readers to understand the Bonded Seal Market further:
Chapter 1: Bonded Seal Market Product Definition, Product Types, Volume, and Revenue Analysis of Each Type in North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa from 2023 to 2030.
Chapter 2: Manufacturer Competition Status, including Sales and Revenue comparison, Manufacturers' commercial date of Bonded Seal Market , product type offered by each manufacturer, Mergers & Acquisitions activities, and Expansion activities that occurred in the Bonded Seal Market .
Chapter 3: Bonded Seal Market Historical (2023-2030) and Forecast (2023-2030) Volume and revenue analysis of Bonded Seal Market in North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
Chapter 4: Bonded Seal Market Product Application, Volume, and Revenue Analysis of Each Application in North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa from 2023 to 2030.
Chapter 5 to 9: Bonded Seal Market Country Level analysis of North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa, including volume and revenue analysis.
Chapter 10: Manufacturers' Outline, covering the company's basic information like headquarter, contact information, major business, Bonded Seal Market introduction, etc. Bonded Seal Market Sales, Revenue, Price, and Gross Margin of each company, as well as Recent Developments, are also contained in this part.
Chapter 11: Industry chains, like raw materials, and manufacturing costs, are covered. In addition, market opportunities and challenges are emphasized as well in the chapter.
Chapter 12: Market Channels, Distributors, and Customers are listed.
Chapter 13: Verified Market Reports Conclusions of Bonded Seal Market based on comprehensive survey.
Chapter 14: Methodology and Data Sources.
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