Q: How does a bonded warehouse work in China?
A: A typical structure may involve:
Suppliers deliver goods into a bonded warehouse located in Free Trade Zone under Customs supervision with standard customs documents: Packing List, Invoice, customs declaration note.
Before delivery, suppliers shall communicate with us for filling out correct information in customs documents.
Trucks entering the bonded area must carry only the goods covered by the current customs declaration and must use the registered vehicle bearing the licence plate number that has been filed by us with Customs in advance.
Goods remain under bonded status. While stored in the bonded warehouse, the goods are not considered fully released into the domestic Chinese market or overseas market. This can provide flexibility for inventory management, trading arrangements, and international transactions.
Customer receives goods through the appropriate customs procedure. The final movement of goods depends on the transaction model, such as:
- re-export to another country;
- cross-border e-commerce fulfilment;
- processing trade;
- transfer between bonded entities;
- domestic clearance with applicable customs procedures.