Bonded Warehouse | Shipping Term Explained | Logistics Glossary

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GLOSSARY

Bonded warehouse

A bonded warehouse stores the goods that undergo customs and are waiting for the import duty and VAT to be paid before release.

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What is a bonded warehouse?

A bonded warehouse is where the imported or exported goods are stored. The bonded warehouse is similar to regular warehouses but closer to the foreign customer. During export and import of merchandise, the payment for VAT and duties can be deferred until the goods are sold.

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