Governments developed the concept of bonded inventory to encourage international trade. When a good is transported across the world, it may be transported through several countries before it reaches its final destination. Through the use of bonded warehouses, the importer avoids excessive taxation from the intermediary countries during the transport of the good.
Bonded Inventory : The duty tax is meant to be charged on foreign goods entering a country’s domestic economy. If a good enters a country only as part of its transportation, it is considered bonded inventory. The inventory is called bonded because the importer must post a customs bond to the government as collateral for the duty on the goods. When the importer transfers the goods to another country, it may redeem the customs bond and get paid back its customs deposit.
Bonded Warehouse : A building or other secured area, in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government. This system exists in all developed countries of the world.
At MAZE Consultancy we specialize in setting up Customs Bonded Warehouse and Customs Bonded Highway Carriers all over USA and Canada. If you are planning to convert your Warehouse into Customs Bonded Warehouse or Sufferance Warehouse, or want to start moving bonded shipments across Canada and USA call us at +1-888-315-6293 or +1-905-826-2919. Alternatively you can send us email at firstname.lastname@example.org . We also issue Highway Carrier Bonds covering the amount of CAD 25,000 and USD 25,000.