Reasons Why Your Business Should Consider a Bonded Warehouse

Posted by Almasagt

Business expansion is complex, especially when you own a manufacturing company, requiring meticulous planning. Having a robust inventory management system is critical when you have a business that operates in numerous countries. And in order to do so, a Dubai bonded warehouse is a must. Let’s discuss Dubai bonded warehouse.


What is a Dubai Bonded Warehouse?

A bonded warehouse is a specially built building for storing imported goods while being vetted for exportation. Also, while the goods are stored in a bonded warehouse (referred to as a duty-free space), businesses are not required to pay any duty or Value-added tax (VAT).

The products are stored in bonded warehouses for a certain period until the duty is paid. Once the duties are paid, the products are approved for deliveries utilizing transportation. Al Masa Transport, for example, can be of tremendous assistance in ensuring that your package is handled with care.

If any duty goes unpaid, government authorities may have the exclusive right to repossess your shipment and take legal action.


Advantages of  Warehouses

The primary goal of using bonded warehouses is to transfer products to clients safely and legally. These warehouses are constructed for storage under customs regulations.

Warehouses are commonly used by businesses not only to keep their items safe but also to gain several other advantages:

Advantages of Bonded Warehouse


1.      No Duty to Be Paid

There are no duty costs, which is one of the initial advantages that businesses obtain from using a Dubai bonded warehouse. Not unless the goods have been delivered in their entirety to the clients.

Furthermore, if a certain percentage of products are unsold, enterprises are free to export their products without paying any duty. This is because VAT is only applicable when you sell your product to importers.


2.      Access to Store Restricted Items

Companies can store restricted items in the bonded warehouse without any problem. This storage can extend unless there is a requirement for the product(s) to be delivered.


3.      Good Storage Facility

Well-built bonded warehouses can conveniently keep various products, depending on their type and how long they need to be stored. Food items stored in the bonded warehouse are an understandable example. The items are placed in freezers or kept in temperature-controlled chambers according to the need.


4.      A Formal Bond

Once your products have been housed in a bonded warehouse, the authorities will offer you a formal bond, which will prevent you from dealing with any financial issues once the shipment has been unloaded after all charges (including taxes) have been paid.


5.      Logistics Solution

Transportation management businesses, which control other corporate operations like delivery, are integrated with bonded warehouses. Keeping this in mind, your company may be able to leverage additional logistics solutions.


Two Reasons to Consider Dubai bonded warehouse

Many businesses are unsure whether or not they require the services of a bonded warehouse. Consider the following three reasons if you seek any further clarification.


1.      An Improved Cash Reserves

As previously stated, holding goods in a bonded warehouse does not necessitate payment of duty unless the commodities are sold. Not having to pay anything until the goods are delivered saves a lot of money in the bank.


2.      No Duty on Exportation

If your products aren’t entirely stored, the most significant benefit of holding them in a bonded warehouse is the ability to export the returned goods. However, another factor to consider is that you would not be obliged to pay any duty on what you import or export.

Above are the reasons why we consider Dubai bonded warehouse.


How Can Al Masa Be of Any Help?

Many elements must be considered when expanding a business, but it also necessitates the collaboration of credible companies that can help you streamline your operations.

Al Masa General Transport is one of Dubai’s most dependable transportation companies.

We, as a company, make sure that your products reach their intended location safely and securely.

Al Masa Services

We provide Reefer TrucksReefer VansReefer TrailersTrailers (Low bed, flatbed),  Cranes, TrucksForklift, and Containers Mass,  as a transportation solution throughout the UAE.

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