International trade and commerce has opened a crucial spot for bonded warehouses such as ALP warehouses. Businesses that choose a warehouse within ALP West Logistics Park can seamlessly apply for a bonded licence through the Kenya Revenue Authority (KRA) website. Bonded warehouses play an important role and offer valuable cost-saving and flexibility advantages to businesses engaged in trade, making them a crucial component of global supply chain and logistics strategies. These controlled facilities allow for the storage of certain types of goods under specific conditions. However, not all types of goods are eligible for storage in bonded warehouses, and there are restrictions and prohibitions in place to maintain safety, security, and compliance with relevant regulations. Once granted the licence, a KRA officer is appointed to handle this bonded facility.
Eligible Goods for Storage in Bonded Warehouses
1. Imported Goods.
Bonded warehouses are primarily used 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. These can include things like raw metals, chemicals, textiles, and agricultural products.
3. Perishable Goods
In some cases, perishable items like food, flowers, and pharmaceuticals that require controlled temperature and humidity conditions can be stored in specialized bonded warehouses equipped with appropriate facilities.
At ALP Warehouses, we have tenants that deal with perishable goods such as Oximio who have a customs bonded storage facility. Oximio is a leading supplier of end-to-end clinical trial services, bringing experience and expertise to the global clinical research industry.
4. High-Value Goods
Expensive and high-value goods like jewelry, luxury goods, and high-end electronics are often stored in bonded warehouses to defer taxes and duties until they are sold or distributed.
6. Goods for Re-Export
Goods intended for re-exportation, such as exhibition goods or 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, there are certain restrictions and prohibitions regarding the types of items that can be stored. These restrictions are put in place to ensure compliance with legal, safety, and public health regulations. Here are some common restrictions and prohibited items:
1. Hazardous Materials
Bonded warehouses typically do not accept goods that are considered hazardous or dangerous. This includes items like explosives, flammable liquids, radioactive materials, and toxic substances.
2. Contraband and Illegal Items
Any goods that are illegal to possess, trade, or transport are strictly prohibited from being stored in bonded warehouses. This includes counterfeit goods, illegal drugs, smuggled items, and stolen goods.
3. Perishables Without Proper Facilities
While some bonded warehouses can accommodate perishable goods, those without appropriate temperature and humidity control facilities are unable to store such items due to the risk of spoilage and contamination.
4. Live Animals and Plants
Living organisms, including animals and plants, are typically not eligible for storage in bonded warehouses, as they require specialized care and conditions that these facilities cannot provide.
5. Restricted by Trade Agreements or Laws
Goods that are restricted by international trade agreements, embargoes, or domestic laws may also be ineligible for storage in bonded warehouses. These restrictions can vary based on the country and the 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.
