The demand for Bonded Warehouses and Foreign–Trade Zones (FTZ)
At the border crossing of the United States and Mexico, there is a massive demand for bonded warehouses and FTZ. These provisions are highly beneficial for companies as they allow them to defer payment of duties when the goods are being imported in the United States. Bonded warehouses are private facilities that fall under the United States custom supervision. It allows storing products duty-free as long as they are not withdrawn. Once someone decides to finally withdraw the product, they have to pay requisite duties. This is an excellent option for shippers who import and export products that are extremely high duty rates. They can defer the overall payment up till they finally decide to withdraw their goods. That being said, the goods cannot undergo additional manufacturing while staying at bonded warehouses.
How using a bonded warehouse can help Importers and Exporters
Importers and exporters are always on the lookout to save money when it comes to transporting their goods from one destination to the other. Once they are ready to begin importing their goods, the next step for them is to get their customs bond. That being said, have you ever given any thought to what it actually is? More importantly, have you ever wondered which type of bond would suit your business needs the most? Well, let us start with perhaps the most important of them all (custom bonds) and how businesses who want to import and export their goods via the U.S parts can benefit from it. To make things simple, a customs bond is essentially an insurance policy that makes sure the government of the United States will pay for your taxes and duties.
Businesses that are preparing to start transporting products in the U.S but are not prepared to start selling their merchandise at once can greatly benefit from a custom bonded warehouse to store their goods. The main reason behind it is that imported goods tend to be a little vulnerable to border or custom seizures. In addition, unexpected changes in warehousing, legislation, economics, and politics can play a huge impact on your products in custody, especially if you are transporting your goods to or from Mexico.
Therefore, it is important for every business manager to make sure that their goods are completely protected during the inspection process. The goods are in a duty-free state for the complete duration they are in safe storage at customs bonded warehouses (until being exported). These goods will stay in a duty-free state until they are withdrawn, destroyed, or exported after payment of the duty.
The only challenges that businesses face during this kind of import are facing the customs and/or finding a location with adequate storage space for containers or goods. Opting for a bonded warehouse makes sense for transporters as it is more than capable of reserving partial or consolidated shipments along with group consignments.
How U.S companies make bonded warehousing work in their favor
According to the United States trade strategy, warehousing permits businesses to conduct their work, take care of their inventory levels, and flow of cash all at once. This option proves to be more than valuable for them to import goods, especially during custom delays or the ongoing negotiations processes where the delivery takes longer than expected.
Custom bonded warehousing plays its role by offering the traders secure yards for their containers and safe buildings for their goods. It helps with duty-free storage. While the goods are being transported to the designated warehousing facility, the bond conveys the good’s liability to the proprietor of the warehouse. This makes sure that the goods are kept safe and secure in the proper storage solutions to ensure that they do not attain any kind of damage.
As it is abundantly clear by now, the various modes of bonded transportation can help businesses save tons of money.
That being said, the business that plans to transport those goods does not know how to oversee the whole process. More importantly, even if the business is aware of how logistics and import and export work, they do not know all the ins and outs in most cases. This is where the role of the freight company comes into play. An experienced freight company like ours knows exactly how to take advantage of the different kinds of bonds available and make them work for a particular type of business.
Since the laws regarding transporting goods to Mexico are quite strict, we make sure that we contract reliable sources to get your goods over there without any security issues or other kinds of hassles. Moreover, a logistics company will also save you a lot of money by choosing the right type of bond making sure that not only are able to avoid paying duty but also get your goods delivered on time.
Have you ever wondered which type of bond would suit your business needs the most?
Talk to the experts in the department of Transportation & Customer Service!