What is a Bonded Warehouse?

A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, worked on, or undergo light assembly operations without payment of duty. It may be managed by the state or by private enterprise. In this concept of ‘bonded warehousing,’ the importers could store cargo and effect partial releases, thereby deferring duty payment to Customs, and at the same time, releasing the international (ISO) container in which the cargo is imported.

How Does Bonded Warehousing Work?

While the goods are in the bonded warehouse, they may, under the supervision of the customs authority, be worked on in terms of cleaning, sorting, repacking, or otherwise changing their condition by processes that do not amount to manufacturing. After working on and within the warehousing period, the goods may be exported to another bond (EOU, etc.) without paying duty. They may be taken for consumption upon payment of duty at the rate applicable to the goods in their renewed condition at the time of withdrawal.

Process of Bonded Warehousing in India

WAREHOUSITY is emerging as the biggest Bonded Warehousing Player in the country and is bringing the triple advantage to you by offering end-to-end bonded warehousing service

Bonded warehousing offers a triple advantage to the importers. On the one hand, it allows the deferment of duty payment, and at the same time, it allows the release of the shipping container back to a yard which otherwise attracts detention charges. It also allows for cargo to be stored under the relatively cheaper option of warehouse storage instead of holding on to an ISO container lying at the port for which dollar lease rentals of the container and the port / CFS rentals accrue on the importer.

The detailed benefits of Bonded Warehousing:

  1. Flexibility to clear cargo in part consignments (unlike in the case in other Container Freight Station (CFS)/ International Container Depot (ICDs), thus allowing flexibility towards consumption/end distribution and availing the benefits of bulk import.
  2. Duty deferment benefits (freeing up working capital and reduction in costs)
  3. De-stuffing cargo from shipping line containers into bonded warehouses avoids detention charges and port ground rent.
  4. Quality control before duty payment is to be paid on cleared goods only.
  5. Value addition services include labeling, packing, kitting, bar-coding, palletization, and other authorized services.
  6. And all you pay is Per Box per Day or Per Pallet Per Week.

Why Choose Warehousity:

WAREHOUSITY is emerging as the biggest Bonded Warehousing Player in the country and is bringing the triple advantage to you by offering end-to-end bonded warehousing service. All the warehouses in the Warehousity platform are well-curated for your requirements, in collaboration with public bonded warehouse operators (both state and private), Dark Warehouse , Micro Warehouse and are located across the country, including close to the ICDs / Airports, offering advantages of lesser cost to importers.


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For more information, you can reach out to us at +91-7677180180 or Warehousity.

This article is contributed by Mr. Mansingh Jaswal, Director & Chief Executive Officer with Genex Logistics and a mentor to Warehousity, having a professional experience of over 20+ years in Supply Chain, Logistics, Transportation, and International Freight and a Research Scholar at Management Development Institute (MDI) in Strategy.