Warehouse guide

Warehouse Guide: How Is A Bonded Warehouse Beneficial for the Importers?

Warehouse Guide: How Is A Bonded Warehouse Beneficial for the Importers?

Bonded Warehouse is useful in case of import. Here, you do not have to pay custom duty till you resell or export imported products. You have to file a bill of entry when your impor product arrives. There are many other functions of bonded warehouse which we will get to know in this blog. 


“Chase the vision, not the money, the money will end up following you.” 

 – Tony Hsieh

Functions of Bonded Warehouse

In simple words, a custom controlled warehouse. wherein goods are kept for processing before delivery. Private companies or governments, both can own these warehouses. In such warehouses, goods are retained until the custom duty is paid. Though certain timeline rules are regulations are it. Or else, shipment is confiscated according to the laws of a particular country. Majorly, they dispose such shipments. Overall, functions of bonded warehouses have made things easier. Thinking to grow your business at a global level? It’s mainly necessary to store your goods in custom bonded houses. 

Functions of Bonded Warehouse

Difference Between Bonded & Non Bonded Warehouse

The Importance of bonded warehouses is quite high. But, it does not mean to ignore non bonded warehouses. Let’s Try understanding them one to one.

Bonded Warehouses

To export, import or store goods, bonded warehouses are a safe place. The importer pays the duties when the goods are empty or removed from the storage. Warehouse owner & importer signs on a bonded agreement. That’s why we call it ‘Bonded Warehouses’. Directly or indirectly, it encourages exporters & importers. Majorly, government owns bonded warehouses. Private companies own too but not as much as the government. Bonded warehouses, need to designate a specific area for storage of goods. Once approved, different agreements are done to the various customs inspections. 

Non Bonded Warehouses

In Non Bonded Warehouses, the duty is already paid, unlike bonded warehouses. Understood the difference? Unlike custom authority, port authorities supervise these warehouses. To use the goods in the domestic market, non bonded warehouses are the best. 

Non Bonded Warehouses

Benefits of Bonded Warehouses

We have cleared, Functions of Bonded Warehouses. Little extra technical, right? See, if you really want to be a successful International businessman then you ought to go technical. In clear words, there is no other option. Commonly, use of bonded warehouses is done to deliver the products to customers safely. 

Let’s quickly check out Benefits of bonded warehouses:

* Here, No Duty needs is paid until the goods are released for delivery to the buyer. So, this gives the full control of payment to the respective importer. 

1. Different facilities are equipped to tackle various types of storage 

2. Bonded warehouses offer additional logistic solutions as well. 

3. Even restricted goods are allowed to be stored in the bonded warehouses. 

4. In bonded warehouses, storage can be long term.

5.  Also, safety & Security is comparatively more. 

Importance of Bonded Warehouses

Time For Storage: From the date of it’s arrival, bonded warehouses are supposed to provide storage. Still, That too for the shipments till 24 months. 

Security of shipments: In custom bonded warehouses, the shipment is safe. Here, 24×7 monitoring cameras & other safety precautions are to be taken care of. 

Global Shipping: Bonded warehouses are situated near ports. which makes it quite easy to transport the goods anywhere in the world. 

Value Assurance: As custom authorities provide a bond to product holders, while releasing the products. Financial loss is minimised. Once the business pays out entitled taxes & duties, only then the goods are released.

Storing Restricted Products: Storing restricted products after completion of proper legal work. Imagine, how Great the benefits of bonded warehouses are!! 



As far as I am concerned, major things are covered. From, Functions of Bonded Warehouse to importance of bonded warehouses. I just want to highlight one more thing here, don’t go blindly. So, in the export import business, you must keep your eyes open. Whatever decision you take from warehousing to revenue, you ought to decide carefully. So, the stage of decision is hugely crucial. Join Digital exim, the best export import consultancy company in India. You heard that right, India’s fastest appreciated export import consultancy program is conducted here. Call on 9505506333 for ultimate export import consultancy with dozens of features. So, start your export import journey with us today! East or west, Digital Exim is always the best. 

Happy Trading! 🙂 


Kavit Shah

Founder of Impexperts & Digital EximSharing the 33+ years of experience in the Exim Industry, with the aim to help every Indian Entrepreneur achieve their Business Goal!

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