One of the key aspects of any international business involved in global trade is always looking for the best ways to optimize processes and reduce upfront costs while making cross-border shipping easier and more efficient.
This is where Bonded Shipments shine as an option offering a business to move its goods while deferring tax and duties, improving the management and flow of cash and streamlining overall logistics.
Let’s look into bonded shipments, the benefits they can bring to your business, and the key aspects to pay attention to when setting up one.
What are bonded shipments?
Bonded shipments transport goods from point A to point B and across borders without having to pay duties or taxes, until the shipment reaches its final destination.
This represents a benefit for the companies in international trade because they are able to move their goods across borders and have them stored in bonded warehouses without having to take care of any immediate customs duties.
This means a business can have its goods safely stored under customs control inside a special customs-approved facility, where they remain untaxed until they are ready to leave and be released into the market.
Bonded Shipments work great, especially for large shipments or when the business needs to delay payment of duties until the goods are sold or further processed. This helps the business better manage its finances.
Benefits of bonded shipments for businesses
Using bonded shipments bring many advantages and avoid unnecessary headaches for businesses involved in international shipping who deal with cross-border transactions customs agencies and international tax and duties.
Cash flow optimization
The main and more obvious benefit from bonded shipments is the ability to delay and defer duty and tax payments until goods are sold or ready to be moved out of the bonded area. This allows businesses to improve their cash flow management, which is very helpful, especially for companies with tight margins or looking to keep their operation costs low.
Smoother Cross-Border transportation
Because bonded shipments simplify the logistics process at border crossings, they help companies navigate the process of international shipping in a more efficient way, reducing delays at ports of entry and making the overall cross-border transportation more efficient.
Reduced risk of seizure
With bonded shipments, goods are stored securely in compliance with customs regulations in a special customs-approved facility also called bonded warehouse and handled by a bonded carrier.
This reduces the risk of penalties, fines, and seizures from customs and border protection (CBP) authorities and prevents many risks associated with international shipping.
How to set up bonded shipments
Setting up bonded shipments involves a few steps that can be simplified when working with the right partner like EP Logistics. Here are some key aspect to keep in mind:
- Choosing a Bonded Carrier: Researching, looking for and choosing a proven experienced bonded carrier that has authorization for transporting bonded freight is essential since this carrier will move your goods the right customs bond. Working with the right partner will ensure your logistics run smoothly and be prepared to quickly respond to any challenges that might arise
- Getting help from a Customs Broker: Working with the experienced and knowledgeable customs broker for international trade transactions across borders, not only can they help navigate the bond process, but they also manage customs fees, and make sure your shipments stay compliant with customs and border protection (CBP) regulations. They can also assist with electronic data interchange (EDI) and handle all documentation needed, like obtaining a customs bond and HTSUS number.
- Bonded Warehouses: Storing your bonded cargo in a bonded warehouse is the next step. Here your goods will remain under customs control until duties are paid, or the goods are ready to be released. This is the best way to defer duties and taxes while ensuring that your goods are stored safely and remaining compliant at all times.
At EP Logistics, we offer your business, expert Customs Brokerage Services as well as Strategically located Warehousing services that support you in efficiently managing and moving your bonded shipments across the U.S. and Mexico border.
Our team makes it a priority to ensure that your goods are moved smoothly across borders, while also staying compliant with customs regulations, enhancing and optimizing your logistics process.
With 20+ years of proven experience in handling shipments at ports of entry, we deeply understand customs and border protection requirements and regulations. We want to help businesses navigate the cross-border process with ease.
Contact us today and learn more about all other solutions we can offer your business to help it thrive, such as air, ocean and road freight and ecommerce fulfillment. At EP Logistics, we got you covered!
