Customs Bonded Area – It’s meaning and functions
The term Customs Bonded Area is used in export and import of international trade. This term – Customs Bonded Area – means, the area under customs control where in goods cannot be moved in or out without the permission of customs department.
What is customs bonded area in exports and imports? How Customs does bonded area work in Export Import Trade?
Customs bonded area means, the cargo enters inward the area and going outward area is under the supervision of customs department. In other words, you cannot move out or move in the bonded area without customs permission. If you want to do any jobs inside the area also is under customs supervision.
Now let us discuss about some of the circumstances where customs bonded area is used.
Customs Bonded Area at a customs location under regular imports and exports.
As you know, any goods moved in to a country and moved out from the country are under the control of government through its agency – Customs Department. So each customs location has a customs bonded area.
The goods for export are moved to this Customs Bonded Area for necessary
examination and assessment procedures under export customs clearance procedures and formalities of the country. Once after completion of such export customs clearance procedures, customs permits to move goods out of such Customs Bonded Area for export.
In an import, all goods importing to a location is moved to a customs bonded area at the customs location first. Once after completion of necessary import customs clearance procedures and formalities, the goods are moved out from such Customs Bonded Area to the importer’s place. In other words, any goods moved in to a country is moved to a customs bonded area first, and such goods can be moved out from customs bonded area only after necessary permission from customs.
Customs Bonded Area at an Exporter’s location for units under EOU and STPI.
Each unit under 100 percent Export Oriented Unit and unit under STPI have Customs Bonded Area at their location. At the time of obtaining LOP Letter of Permission, each unit of EOU or STPI is allotted an area by customs department after necessary physical inspection and satisfaction. This customs bonded area could be a warehouse also. Any dutiable goods, let the goods be import or domestic which attracts import duty or central excise duty have to be moved to such customs bonded area first.
Under exports or local movement like Inter Unit Transfer etc, the unit under EOU or STPI has to take necessary customs permission by following certain documentation procedures and formalities. The necessary examination procedures are followed by customs officials if applicable and permits to move goods out of such Customs Bonded Area.
Under imports or local procurement of goods, each Export Oriented Unit or unit under STP has to notify customs department immediately up on such arrival of goods in specified format within a specified period of time of arrival. Necessary Re-Warehousing Certificate procedures have to be completed by each EOU /STP units by completing necessary procedures and formalities specified.
Customs Bonded Area in a Customs Bonded Ware House.
Under imports, if importer need not take delivery of goods immediately up on its arrival, he can store goods in a Customs Bonded Area. The importer need not pay duty amount on such goods immediately up on import. The importer can pay duty and take out goods as and when he requires. The importer can move goods part by part also as per his convenience. Here, the importer files necessary import documentation for warehousing immediately up on arrival of import goods and arranges to move goods to a customs bonded ware house, which is a customs bonded area. The importer need not pay any import duty amount at that point of time of warehousing. As stated, as and when the importer requires to move imported goods to his place, he pays necessary duty amount to customs and clears the goods either part or full quantity of imports. Also read How to get export order from foreign buyers? What is DTA in export import trade?
I hope, I could explain about Customs Bonded Area under exports and imports. If you wish to add more information about Customs Bonded Area in an international trade, please write below.
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The above information is a part of Online export import training guide
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