Bonded Warehouse in Shenzhen

What is a bonded warehouse?
A bonded warehouse is a warehouse in which duty on goods stored within need not be paid until the goods are removed from the warehouse. A bonded warehouse is referred to by China Customs as a Licenced General Warehouse.

A bonded warehouse is therefore a duty free zone, akin to a port. It is usually fenced and has high security. The warehouse operator normally gives a ‘bond’ or more usually nowadays a bank guarantee (instead of a cash deposit in the old days) to customs to guarantee that there will be no loss of revenue to customs should any of the goods stored within be inadvertently released from the bonded area. In China, a license from customs is required before a public bonded warehouse can begin operations.

What are the benefits of storing in a bonded warehouse?

1.By storing goods in a bonded warehouse, traders can enjoy substantial cost savings through the deferment of payment of tax if the goods are not immediately required when they arrive in the destination port.
2.Duty need not be paid on imported goods which are intended for reexport.
3.Duty need not be paid on goods which are produced in a Free Industrial Zone pending export if they are stored in a bonded warehouse.

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