A bond store or bonded warehouse is a secure area where goods can be stored, checked or undergo additional manufacturing, without the importer having to pay duties and taxes. In South Africa, imports may be kept in a bond store for two years.

An importer may need to delay the movement of goods into the country when they arrive (because when the goods are moved, VAT and import duties will need to be paid). If this is the case, the importer will keep the items in a bonded warehouse until they are ready to complete the importation process. There are many advantages to running a bond store but many importers feel that the costs outweigh the benefits. But, this has changed…

It took 3 days to clear and release goods.

Electronic clearing takes 5 minutes.

There was a complex manual paper trail.

There is real-time paperless documentation.

There was complicated manual auditing.

There are automated and electronic verification systems.

Elaborate warehouse management was required.

There are simplified systems for warehouse control.

A complete re-engineering of procedures was needed.

Integration means no changes to legacy methods.

There were manual customs processes.

 There has been modernization of customs’ systems.