What is a Bond Store?
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.
Why have a bond store?
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…
The evolution of bonded warehousing
Before
Stock was kept in a sealable cage with access control.
Now
Goods are stored under the same conditions as duty-paid stock.
Before
It took 3 days to clear and release goods.
Now
Electronic clearing takes 5 minutes.
Before
There was a complex manual paper trail.
Now
There is real-time paperless documentation.
Before
There was complicated manual auditing.
Now
There are automated and electronic verification systems.
Before
Elaborate warehouse management was required.
Now
There are simplified systems for warehouse control.
Before
A complete re-engineering of procedures was needed.
Now
Integration means no changes to legacy methods.
Before
There were manual customs processes.
Now
There has been modernization of customs’ systems.