How can bonded warehouses increase efficiency?

COVID – 19 has definitely affected the world’s logistics sector, making it hard for enterprises to purchase goods across borders. Advanced storage is now a priority for both manufacturers and merchants to streamline their business.

Bonded Warehouses

Image source: Internet. 

What is a bonded warehouse?

Bonded warehouse (Customs warehouse) is a place suitable for long-term storage of goods that allows the goods’ owner (importers or exporters) to postpone their duties until the goods reach their final destinations.

The goods permitted in a bonded warehouse include: Goods awaiting for Customs clearance; Temporary import and re-export goods; Goods imported to distribute to the domestic market.

The goods banned from a bonded warehouse include: Goods with fake origin trademark or appellation; Goods that cause danger to people or pollute the environment; Goods banned from export, import, unless otherwise permitted by the Prime Minister.

Advantages of bonded warehouses

Optimize cash flow efficiency

It is not until the goods deposited are re-exported or sold do the goods’ owners have to pay the customs duties. In other words, companies can better manage their budget if there is an unexpected demand shock or the Customs procedures take longer to complete.

Shorten delivery times

Bonded warehouses are usually established in strategic locations such as logistics parks, industrial parks, free trade zones or big cities with convenient transportation. As a result, many manufacturing companies have chosen to import their inventory and assemble parts to a bonded warehouse in advance and re-export instead of direct exporting.

Better preservation

Modern facilities inside a warehouse (the racking systems for instance) help organize goods and products systematically. Frozen products are preserved in better conditions with a temperature-controlled system. Bonded warehouses are suitable for extended storage since the lease term is up to 5 years.

Secured storage

Under the supervision of the Sub-Customs Department in charge, bonded warehouses must follow strict regulations relating to the labor force, preserving conditions and security measures.

Bonded warehouses have incredibly changed the world’s logistics sector. They prompt delivery of goods and products within the shortest time frame, improve customers’ satisfaction and promote seamless business development.


Image source: Internet.

Bonded warehouses in Vietnam

It is reasonable to say Vietnam’s competitiveness partially comes from our logistics industry.

Vietnam has an ideal geographical location on the eastern edge of mainland Southeast Asia. We present as a bridge between the upper parts of the continent and the world. Our 3.000 kilometers of coastline and a vast network of rivers facilitate maritime transportation.

Vietnam has been developing the warehouse infrastructure to accommodate the global outsourcing wave. We are able to offer warehouses of different purposes for international partners: from cold to bonded warehouses with integrated transportation services.

The Southeast Asian region is becoming more and more attractive thanks to its dynamic economic growth and potential market. By storing inventory in local bonded warehouses, global trading companies can deliver goods within the shortest time frame and meet their market’s demand. These warehouses are particularly helpful among e-commerce companies since they can unpack, classify and repack the parcels. This function increases work efficiency and customer satisfaction.

Moreover, Southeast Asia is a destination for manufacturers who look for abundant low-cost labor. In order to avoid sudden supply chain disruption, manufacturing firms can utilize the bonded warehouses to store their inventory in advance and re-export to the nearby country.

Thang Long III IP., Binh Xuyen, Vinh Phuc, VN
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