Bonded Warehouse Solutions
Customs Bonded Warehouse
A general bonded facility, also known as a customs bonded warehouse, is a secure facility overseen by customs authorities where imported goods can be stored, manipulated, or processed without immediate payment of duties or taxes. This allows businesses to defer tax payments until goods are released for consumption, manage cash flow, and take advantage of flexibility for inventory management in volatile markets. These facilities are crucial for international trade, providing a controlled environment for handling goods and ensuring compliance with customs regulations.
Customs warehousing-The East African Community Customs Management Act, 2004 (“EACCMA”) provides that imported goods liable to import duty may be warehoused without payment of the requisite duties. Such goods may be warehoused in a government warehouse or a bonded warehouse (whether general or private), commonly referred to as Customs bonded warehouses. Goods which are warehoused may subsequently be cleared for inter alia home consumption, exportation, or for use as stores for aircrafts or vessels. Customs bonded warehouses are operated under the supervision of Customs; bond security is executed to guarantee the deferred duties on the goods stored therein. Goods at the warehouse may undergo repackaging, breaking bulk and labelling, but their identity is largely preserved. Where the goods are entered for home consumption, duties are paid before release.
How a Bonded Facility Works
- Storage: Imported goods are stored in the secure facility under customs supervision for an initial period of 6 months and possible extension of 3 months.
- Duty Deferral: Duties and taxes are not paid immediately upon import.
- Manipulation: Goods may be repackaged, labeled, or undergo other operations while in the warehouse.
- Departure: Duties and taxes are paid only when the goods are withdrawn from the warehouse for domestic consumption or re-export to more than 160 countries. If the goods are re-exported, duties may be waived.
Benefits of Using a Bonded Facility
Freightways Bonded Facility
- Located less than 500m from the Nairobi Inland Container Depot(ICDE) and 5Km from JKIA
- 10,000 sqft of space
- Tarmacked access road
- Secure location with ample parking for trucks
- Customs Officer on site
- Less than 600m from Mombasa Road
- Store goods for approved 6 months with possible extension of 3 months
Some Bondable Goods
- New and used spares for motor vehicles
- Tires for motor vehicles and motorcycles.
- Lubricants and batteries including vehicle batteries.
- Wines, spirits and other alcoholic beverages
- Office supplies ready for retail sale including stationery cartridges/ toners for pens and printers
- Cigarettes and tobacco
- Cameras and phones
- Toiletries and cosmetic products for retail sale including fragrances, powder, lotions, creams, lipsticks, hair coloring and hair care products
- Any other goods which may be determined, at the Commissioner’s discretion, to have a likely negative impact on the implementation of Customs laws and any other written laws.
Non-Bondable Goods
- Acids
- Ammunition & arms for trade or business
- Chalks
- Explosives
- Perishable goods
- Fireworks
- Combustible or inflammable goods (except petroleum products which are stored in approved facilities)
- Matches other than safety matches.