Reference Regulations

  • Prakas 116 MEF.BRK Dated 15th February 2008 on Customs Bonded Warehouse

A customs bonded warehouse is a building, place or an area that is authorized to store goods for a specified period of time under the customs control. Import goods and domestic goods destined for export may be placed in a customs bonded warehouse. While goods are stored in a customs bonded warehouse duties and taxes are suspended. Any restrictions and prohibitions on the goods may be waived up to the time the goods are released for home use, or exported.

Types of Customs bonded warehouse:

There are three types of Customs bonded warehouse:

Type A: Public Bonded Warehouses are customs bonded warehouses that are authorized by Minister of Economy and Finance and may be operated by the government agencies or by any approved person. Any person who has the legal right to goods may store their goods in a Public Bonded Warehouse, including importers, and person to whom the goods have been sold while in the warehouse, or any other person having the legal right to dispose of the goods;

Type B: Private Bonded Warehouses are custom bonded warehouses that are authorized by the Director General of Customs and to be solely used by authorized persons for storage of specific goods for their own use, including operators of duty-free shops;

Type C: Special Bonded Warehouses are customs bonded warehouses that are authorized by the Director of Customs and that are used for the storage of hazardous goods, goods that could affect the quality of other goods, or goods that require special storage facilities. Such warehouse may be private or public.

Procedures of Management of Goods in Customs Bonded Warehouse

  • Goods may be stored in the customs bonded warehouse for up to 2 years from the date of registration of the customs declaration. Before its expiry date, owners of the goods may request an extension for storage of goods of up to twelve (12) months if the goods are still in good condition.
  • While stored in customs bonded warehouse, goods can be sold or transferred. The importer or owner of the goods shall inform customs in writing of this transfer of ownership. Goods stored in a customs bonded warehouse can be transferred to another licensed customs bonded warehouse under customs control. Transfer documents shall be submitted to customs for all such transfers.
  • Goods removed for export shall be subject to lodgment of customs export declaration; and no import or export duties and taxes shall be charged, except domestic goods which may be subject to export taxes. Applicable duties and taxes on goods removed for home use shall be charged according to the customs tariff and the rates of duties and taxes in effect on the date of registration of the customs declaration for removal of the goods from the bonded warehouse.
  • Owners of goods in customs bonded warehouses shall be allowed by customs to inspect goods, take samples and carry out necessary operations to preserve the those goods provided that those actions do not change the essential character of the goods. Those operations can be fumigating, drying, cleaning, testing, and normal handling operations such as breaking bulk, repackaging, sorting and grading, marking, labelling or tagging and so on.