What is a Bonded Warehouse? How is Bonded Warehouse Management Done?

Bonded warehouses are the places where transported goods are stored under appropriate conditions during import and export operations until the customs procedures are completed. Companies have customs and paperwork procedures they need to handle when importing or exporting.

Since handling these procedures takes time, the goods must be stored in a specific place. In order to monitor the status of the products in this process, their management must be done well. Therefore, if you are a company that wants to realize a good import or export, you can read the rest of our article to master these processes.

What is a Bonded Warehouse?

Briefly, it is the name given to the warehouse where goods coming to customs wait. Commercial products that require customs procedures must be stored in the warehouse under customs supervision until the procedures are completed.

There is no time limit for storing and keeping the products in compliance with the legislation. Furthermore, it is not necessary to pay taxes during this period.

Permission is required to open a bonded warehouse. Upon the application of those who wish to open one, the customs administration initiates an investigation. Subsequently, it reports the status and its opinion to the regional directorate.

After the request is evaluated in the same manner, it is forwarded to the General Directorate of Customs. Here, too, the request is evaluated, and after being deemed appropriate, permission to open is granted. These warehouses are basically divided into many types, mainly private and public.

What are the Types of Bonded Warehouses?

Bonded warehouse types are gathered under two main groups: private and public. For example, duty-free shops and their warehouses are in private status. While public ones are divided into 2 different groups, private ones are divided into 3 separate groups.

When private ones are leased, a price is determined according to various factors such as the total duration the goods to be stored will be kept, the volume, and the type of the goods, and an agreement is signed accordingly. Only the leasing company can use the private ones. However, companies use those in public status jointly.

The types of public ones are called type-A and type-B, while those of private ones are called type-C, type-D, and type-E bonded warehouses. 

Type-A Bonded Warehouse

In type-A, stock records are kept by the operator of the warehouse and the responsibility for the products belongs to the operator. In the event of a shortage among the products stored here, the customs duty on the missing goods must be paid by the operator. 

Type-B Bonded Warehouse

In type-B warehouses, the operator has no responsibility for protecting the products. The operator is only interested in leasing the warehouse. In addition, no stock records are kept. For this reason, a declaration is submitted beforehand for information about the stock records and content of the goods placed in the warehouse. In case of leasing type-B, if there is a shortage among the products, the operator cannot be held responsible. The company that owns the goods to be settled rents the warehouses in private status.

Type-C Bonded Warehouse

In the private type-C bonded warehouse, only the commercial products in the goods list can be placed in the warehouse. It is forbidden to place those not included in the list. 

Type-D Bonded Warehouse

In type-D, operations can be carried out without the need to present the stored goods to customs. The goods here are evaluated under the simplified procedure. Customs duty is calculated based on their prices at the date they were placed in the warehouse. This way, after the procedures are completed, they are released into free circulation. 

Type-E Bonded Warehouse

In type-E, warehouse rules are applied without a physical storage area and records are kept with a stock book. Wherever the company's storage place is, it can be counted as such.

What is a Bonded Warehouse Declaration?

The customs declaration you will make in order to store the goods to be preserved while carrying out customs procedures is called a bonded warehouse declaration. After making a declaration, your declaration must be registered in the software system of the customs administration.

After the accuracy of the declaration is controlled by the customs administration, the goods are also inspected. As a result of the controls made, if the products are in accordance with the declaration, they are taken into the warehouse. The customs duty to be paid for the commercial products within the scope of your declaration is secured and stamp duty is paid.

What is the Bonded Warehouse Regime?

The regime applied to placing goods that are not in free circulation into a customs warehouse during import and export operations is called the bonded warehouse regime. Products subject to international trade must be subject to one of the 8 customs regimes in accordance with customs legislation. This type of regime, on the other hand, is the most widely used regime type. The characteristics of this regime type are explained in Articles 93-107 of the Customs Law and Articles 328-348 of the Customs Regulation.

What is a Customs Bonded Warehouse?

Customs bonded warehouses, also called type-F, are in public status and the goods here are under customs supervision. Commercial goods coming from abroad must be stored in these warehouses in order to be kept under customs supervision. It is similar to other storage types and the same conditions apply. The company must decide which type of storage to prefer, making it the most advantageous and appropriate for itself and its products.

What is Bonded Warehouse Management?

Bonded warehouse management means monitoring the status of goods arriving at customs during the time customs procedures are being handled. In contrast to classic storage operations, there are procedures that must be fulfilled for customs clearance in this process.

In this management process, the current situation of the goods and the process of inclusion in customs procedures are monitored. Modern software is used for the management to progress regularly and completely. In this way, elements such as the entry-exit transactions and stock status of the goods entering the warehouse are easily tracked.

What is the Difference Between a Bonded Warehouse and a Regular Warehouse?

One of the differences between a regular warehouse and a bonded warehouse is that regular warehouses have a time limit because they are rented temporarily. Although they resemble each other, there are functional differences between them. In both, commercial goods are kept waiting for storage, packaging, and export.

While goods wait in a regular warehouse for the logistics process, in the other, goods that have not yet entered the customs scope and are in the customs process are kept waiting, and legal procedures are carried out depending on many procedures that must be complied with during the customs clearance process. 

What Kinds of Goods Can Be Placed in a Bonded Warehouse?

The goods that companies can place in a bonded warehouse are fundamentally divided into two: goods not in free circulation and goods in free circulation. All kinds of commercial goods that can benefit from export-related measures can be stored here.

However, in some cases, restrictions may be imposed by the customs administration depending on the legislation and practices. Restrictions or special regulations may be applied to flammable, explosive products that are dangerous to be kept together.

How is the Classification of Goods Placed in a Bonded Warehouse Done?

In bonded warehouse management, goods are classified under three separate headings. These are:

• Flammable, Explosive, Combustible, and Combustion-Enhancing Goods

• Other Dangerous and Harmful Substances

• Goods Requiring Special Apparatus for Protection

What are the Goods that Can Be Placed in a Bonded Warehouse with Permission?

Some commercial goods can only be placed in a bonded warehouse with the permission of customs and foreign trade regional directorates. These commercial goods can be listed as follows:

• Foreign country goods that are prohibited from entering and passing through Turkey

• Goods containing names, symbols, etc., that give the impression that they are products of another country, except the country they were manufactured in, on any part of them

• Except for those to be used in export, all kinds of empty envelopes, ribbons, labels, stamps, blank invoices without signature, etc., printed in a foreign language, which will show or give the impression that our domestic products are of foreign origin

• Products of a nature that infringes on the rights of the right holder within the scope of the law on intellectual and artistic works

• Goods permitted by the customs administration and requiring liquidation because their legal period has expired, or surplus goods found as a result of examinations made