What is the usefulness of bonded warehouse in international trade?
People know of the usefulness of bonded warehouse in international trade, which is why they are popular. Bonded warehouses allow making supply chain management and cash flow more efficient. It is good to accept this way of storing goods before transporting and importing. However, it can take time to take advantage of this opportunity. Therefore, you should rely on a professional company that rents storage and understand the importance of using this job. Kokusai Express Japan is a company with experience and logistics, so you can entirely rely on them.
Which types of bonded warehouses are there?
Although bonded warehouse relies on everyday use for the stuff you want to import, there are a lot of different usages. There are important things that both have in common. All applicable duties become payable for goods that will be delivered to their next destination. There is more than one bonded warehouse, and you should learn more about it.
Wet bonded warehouses
Wet bonded warehouses allow storing of alcohol and tobacco. They are separated from the other type because they have conditions for storing those items. These storages must keep the temperature below average, so liquids will not spoil. It is one of the advantages of using a CFS-bonded warehouse.
Dry bonded warehouses
Dry bonded warehouses can store most other imported goods that are not food and drink. Although it does not need a specific temperature, it must still fulfill some conditions. Overseas shipping companies and individuals use it for keeping items before going to the destination. You can also postpone duty payments until the product is moved, which helps companies to keep their business effective.
The usefulness of bonded warehouse in international trade
Firstly, you need to understand what a bonded warehouse is and how to use all its benefits. Clients know the effectiveness of bonded warehouses in international business and rely on them for a reason. You need to know this process better to use it for your future jobs.
You can avoid duty and tax payments
It is excellent when you can avoid or defer duty and tax payments, and bonded warehouse allows it. For that reason, warehouse in Japan keeps the items until you remove or ship them. Bonded storages also have breathing room and space to carry out additional pre-sale activities. You can export these goods and avoid costs entirely until they are shipped. Thanks to that, companies save 25-30%, which is a significant saving.
You can use it in long term
One of the best benefits of bonded warehouse in international trade is that you can use it long-term. Most bonded warehouses can store your goods for up to five years or more. It is beneficial to satisfy import licensing requirements or demand is lower than expected. These warehouses allow storing goods until you meet requirements or needs for the goods are increased.
They allow improving services for the customers
All we said above show that bonded warehouses have a lot of usefulness in international trade. You can order goods in advance or anticipate demand. When goods are closer to the customer, you can quickly deliver and offer a better service. Also, you can get more trust from the clients and provide good communication.
Preserving the quality of the products
Although storage’s most important feature is providing quality products, bonded warehouses go further. They can store all kinds of products for as long as you need. During that time, you can quality maintain the store. Those storages have dry containers, deep freeze systems, temperature control facilities, and bulk storage facilities.
Your items will be safe
Clients mostly want to put their goods in safe and secured storage. Not only that you need to provide good conditions, but you must also follow the storing with proper documentation.
- All goods must be fully documented, meaning that you need to put all on paper and file;
- One of the usefulness of bonded warehouse in international trade is that they are monitored 24 hours a day;
- You can feel confident working with a reputable organization, so choose storage from professional companies.
Those storages are close to ports
Companies locate bonded warehouses near major ports, so your goods are prepared for loading as the vehicle arrives. Companies can store your goods if needed until they are ready to be distributed. However, the most important for the clients is that they can operate with them accordingly and in a short time. It also allows significant savings and reduces costs, lead time, and potential damage.
Bonded storage simplifies the shipping
If you are a client, you surely want to simplify the storage process as much as possible. Bonded storage allows it and even more. You can use them to keep the items close to you or for more accessible transport. However, make the process easy and rely on good companies and storage. Choose professionals and experienced workers for this job.
Some industries are more oriented to this storage
Although bonded storages have a lot of advantages, some industries are more oriented toward them. Mostly their benefits use companies that sell finished products, like jewelry or cars, or intermediate goods like engines. Also, companies usually store goods that will be re-exported or destroyed. You can find in these storages products like tobacco, or alcohol products, that are restricted in some countries. The reason is special paperwork that companies must prepare, which takes some time, during which companies store their goods.
Cooperate with the company and workers
Even the best companies and storage can only fulfill your needs if you cooperate with the company properly. In most cases, you will need to communicate well, inform the company about the company’s problems and conditions, and set demands. Also, if you have reason to get those goods fast, the company must have information about that. The best companies will surely do whatever you need to improve cooperation. Only in that way can you use the usefulness of bonded warehouse in international trade.