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Free Zone-To-Free zone operations in GCC

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Definition: A Bonded warehouse is a secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of customs duty, which can be very hefty. It may be managed by the state or by private authorized enterprise, like Global Logistics.

Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond. This liability is generally cancelled when the goods are:

While the goods are in the bonded warehouse, they may, under supervision by the customs authority, be manipulated by cleaning, sorting, repacking, or otherwise changing their condition by processes that do not amount to manufacturing. After manipulation, and within the warehousing period, the goods may be exported without the payment of duty, or they may be withdrawn for consumption upon payment of duty at the rate applicable to the goods in their manipulated condition at the time of withdrawal.

Our Bonded Warehousing Solution: Most companies do not sell their goods within four weeks of receiving stock into their warehouse. Imagine if this stock was a raw material to be used to manufacture the final goods! This means that they will have paid the Duty up front on all of their stock, which is now classed as "Duty Paid". This is the money that they could have legally avoided paying for a considerably longer period of time.

Through Global Logistics bonded warehousing solution, all of the stock in your warehouse can be classed as "Duty suspended", thus avoiding this advance Duty Payment on goods, which may not have been sold/used yet and will reside in stock for months.

Benefits: The benefits have a very positive impact to Global's Customers businesses, such as:

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