Get to know the vital terms of Logistics and Supply Chain Management.
When it comes to the international transport of goods – the term ‘bonded’ means those shipments that are imported and have some charges pending due to customs such as taxes, tariffs, or fines. These goods remain in a customs-bonded warehouse until the last payment is made towards any tariff and duties. Bonded goods are used in the customs process to ensure that all the government duties and regulations have been complied with before the goods are delivered to the importer.
What are Bonded Goods?
Bonded goods are in a way consignments of goods that have arrived in a country but are still controlled by customs due to unpaid charges. Such costs may entail import duties, taxes, or any other regulatory charges that may be incurred. The goods are warehoused in a bonded warehouse which is a secure place for the stocks where they are kept until all the customs requirements are met.
The Role of a Customs Bond
Someone may be required to deposit a customs bond, especially if they are in a third-party bonded warehouse. This bond serves as security that the importer will make all necessary payments as required. The buyer is also responsible for paying for the goods and customs only releases the goods after the full amount has been paid. This is very beneficial to the importers since they can use the bonded warehouses while waiting to pay duties when the products are required.
What Happens If Fees are Not Paid?
If the importer does not pay the outstanding customs charges that have been imposed, some customs officials have a legal right to hold the goods or even destroy or dispose of them. This is used as a measure to prevent any violation of customs practices that take place in the country.
Conclusion
Bound goods remain an essential component of the global market because they show full compliance with customs charges and requirements. Businesses that engage themselves in the importation business, need to gain knowledge on bonded goods and customs bonds to avoid being trapped or slowed down by the system.
