Bonded warehouse and their management in Zimbabwe.


What is a bonded warehouse?

A bonded warehouse is a place, a building or other secured area in which dutiable goods may be stored for after importation or manufacture without payment of duties due to customs. In simple terms, it is a duty-free zone or area which has been granted the rights to store goods waiting final clearance by customs.  Bonded warehouses provide specialized storage services such as deep freeze or bulk liquid storage, commodity processing, and coordination with transportation, and are an integral part of the global supply chain. There are basically two types of bonded warehouses namely wet and dry. Wet bonded warehouses are the ones in which alcohol and tobacco may be stored. Dry storage are for any other goods as approved by the Commissioner. The main objective of using a bonded warehouse is to keep all materials at stock, till the time they are to be used, sold or transported to somewhere else in the country or outside for exports.

How does a bonded warehouse work?

 The goods may be exported without the payment of duty, or they may be withdrawn for consumption upon payment of duty at the rate applicable to the goods in their manipulated condition at the time of withdrawal. Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond. This liability is generally cancelled when the goods are:

•        Exported; or deemed exported;

•        Withdrawn for supplies to a vessel or aircraft in international traffic;

•        Destroyed under Customs supervision; or

•        Withdrawn for consumption domestically after payment of duty.

Removal of goods from warehouse

There are heavy fines for removing goods from the bonded warehouse without authority from the commissioner of customs.

Which goods are stored in the bonded warehouse?

•        New Motor vehicles

•        Excisable goods- alcohol, tobacco and cigarettes

•        Raw materials

•        Any other finished goods as approved by the commissioner of customs.

What are the benefits of bonded warehouses?

•        Customs and excise duties and taxes payment is differed to the time goods are required.

•        Increased customer satisfaction as goods are locally and readily available once duties have been paid

•        Allows for benefiting from trade and quantity discounts

•        Reduction on logistical costs as large quantities can be imported without payment of duties.

•        Increased liquidity and cash flows as duty payments are deferred

•        Standards on products can be maintained.

•        Income generating from rental income by other users.

DR. Chiukira Levious(PhD) – a Customs and Trade Consultant with Gleam Consultancy

+263773065062

Email: info@gleamconsultacy.co.zw

Facebook : Gleam Consultancy

Linkedin : Gleam Consultancy

 

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