International trade and commerce have indeed opened up a crucial spot for bonded warehouses, such as those provided by ALP. For instance, businesses choosing a warehouse within ALP West Logistics Park can seamlessly apply for a bonded license directly through the Kenya Revenue Authority (KRA). Moreover, bonded warehouses play a critical role by offering valuable cost-saving and flexibility advantages to businesses engaged in trade, making them a crucial component of global supply chain and logistics strategies. Specifically, these controlled facilities allow businesses to store certain types of goods under specific conditions. However, it’s important to note that not all goods qualify for storage in bonded warehouses, as various restrictions and prohibitions exist to ensure safety, security, and compliance with relevant regulations. Once KRA grants the license, the authority appoints an officer to oversee the operations of the bonded facility.
Eligible Goods for Storage in Bonded Warehouses
1. Imported Goods.
Businesses primarily use bonded warehouses to store imported goods that have not yet cleared customs. This can include a wide array of products such as electronics, apparel, machinery, pharmaceuticals, and raw materials, among others.
2. Unmanufactured Goods
Raw materials or unmanufactured products intended for further processing or assembly are commonly stored in bonded warehouses. For example, these can include raw metals, chemicals, textiles, and agricultural products.
3. Perishable Goods
In some cases, businesses store perishable items like food, flowers, and pharmaceuticals in specialized bonded warehouses equipped with appropriate facilities, which ensure controlled temperature and humidity conditions.
ALP Warehouses, Oximio, a leading provider of sensitive clinical trial products and services, utilizes our customs bonded storage facility to ensure the secure and compliant handling of their high-value and regulated inventory. By obtaining a bonded license, Oximio can store these critical products without immediately incurring duties, allowing for greater flexibility in managing their global clinical research operations.
4. High-Value Goods
Businesses often store expensive and high-value goods such as jewelry, luxury items, and high-end electronics in bonded warehouses to defer taxes and duties until these products are sold or distributed.
6. Goods for Re-Export
In addition, goods intended for re-exportation, such as products awaiting distribution to multiple destinations, can also be stored in bonded warehouses.
Restrictions and Prohibited Items in Bonded Warehouses
While bonded warehouses offer advantages for storing a wide range of goods, certain restrictions and prohibitions apply to the types of items that businesses can store. These rules ensure compliance with legal, safety, and public health regulations. Below are some common restrictions and prohibited items:
1. Hazardous Materials
Bonded warehouses typically do not accept hazardous or dangerous goods. These include explosives, flammable liquids, radioactive materials, and toxic substances.
2. Contraband and Illegal Items
Goods that are illegal to possess, trade, or transport cannot be stored in bonded warehouses. Examples include counterfeit goods, illegal drugs, smuggled items, and stolen goods.
3. Perishables Without Proper Facilities
Although some bonded warehouses can accommodate perishable goods, those without proper temperature and humidity control facilities are unable to store such items due to the risk of spoilage and contamination.
4. Live Animals and Plants
Bonded warehouses generally do not accept live animals or plants, as these require specialized care and conditions that the facilities cannot provide.
5. Restricted by Trade Agreements or Laws
Goods restricted by international trade agreements, embargoes, or domestic laws may also be ineligible for storage in bonded warehouses. These restrictions vary depending on the country and specific regulations in place.
Understanding the types of goods that are eligible for storage in bonded warehouses and being aware of the restrictions and prohibited items is crucial for businesses engaged in international trade. Adhering to these guidelines ensures compliance with regulations and smooth operations within the bonded warehousing system, contributing to an efficient and cost-effective supply chain management process.
Benefits of Bonded Warehouses
- Less Cash Tied Up in Duties and Taxes: Free up your capital for business growth.
- Deferred Payment of Taxes: Optimize your cash flow and financial stability.
- Facilitating Free Trade within East Africa: Seamlessly navigate regional commerce.
Would you love to work with us as your bonded warehouse provider? Reach out to ALP Warehouses.
