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Understanding the “Bonded Warehouse”

Posted on by content.vinahugo
13
Sep

General Regulations

Definition

A bonded warehouse is a designated storage area located within Vietnam, separated from the surrounding area, where goods from abroad or domestically are temporarily stored, preserved, or undergo certain services, under a contract between the bonded warehouse owner and the goods owner.

A bonded warehouse may be established in the following areas:

  • Provinces and cities that serve as key points for trade between Vietnam and foreign countries, with favorable conditions for export and import activities.

  • Industrial zones, high-tech zones, export processing zones, and other special economic zones (hereinafter referred to as Industrial Zones).

Goods stored, transported in or out of a bonded warehouse must go through customs procedures and are subject to inspection and supervision by customs authorities.

Conditions for Establishing a Bonded Warehouse

For Enterprises

  • Established in accordance with the law.
  • Engaged in the business of warehousing and logistics for export-import goods as specified in the business registration certificate.
  • Has storage facilities with proper fences, internal transportation systems, fire protection systems, security, office space, and customs workspaces.
  • Equipped with technical infrastructure and vehicles suitable for storing and preserving goods.

Procedure for Issuing a Bonded Warehouse Permit

Documents for Application

  • Application for setting up a bonded warehouse.
  • Business registration certificate.
  • Warehouse layout plan.
  • Legal documents confirming warehouse usage rights.

Enterprises must submit the application to the Customs Department of the relevant province or city. Within 30 days, the local Customs Department will review and submit a report to the General Department of Customs for a decision to issue or refuse the warehouse permit.

The General Department of Customs may revoke a warehouse’s permit under the following conditions:

  • If the warehouse owner requests it.

  • If the warehouse owner violates the law significantly.

  • If the warehouse has not been put into operation within six months without valid reasons.

Services Provided by a Bonded Warehouse

  • Warehouse owners can offer services such as goods storage, packaging reinforcement, classification, and sampling.

  • They can also act on behalf of the owner to handle customs procedures for imported goods, re-export goods, or transfer ownership in accordance with the law.

Who Can Rent a Bonded Warehouse?

Eligible Clients

Vietnamese merchants authorized for import-export business, foreign merchants, and foreign organizations or individuals.

Rental Contracts

  • The contract is agreed upon by both the warehouse owner and the goods owner. It must clearly specify the type, quality, quantity, and rental period of the goods, as well as any services required and the responsibilities of both parties.
  • The rental contract cannot exceed 365 days from the date goods are stored. If requested, the warehouse rental period may be extended by no more than 180 days.

Types of Goods Stored in Bonded Warehouses

  • Goods imported for domestic consumption.

  • Goods in transit awaiting export to a third country.

  • Goods that have completed customs procedures and are awaiting export.

  • Goods past their temporary import period, which must be re-exported.

  • Goods ordered by authorities to be re-exported.

Goods Not Allowed in Bonded Warehouses

  • Counterfeit goods.

  • Goods that pose public safety or environmental hazards.

  • Goods prohibited for export or import, except under special government permissions.

Customs Procedures for Goods Entering or Leaving Bonded Warehouses

For Imports into Bonded Warehouses

Required documents: warehouse rental contract, customs declaration, and other necessary documents.

For Exports from Bonded Warehouses

The goods owner or their representative must complete the required customs procedures as per export regulations before goods can be moved out.

For Goods Leaving Bonded Warehouses for Re-export

Required documents include the export declaration, authorization for shipment, and warehouse exit receipts.

Warehouse Operations Management

  • When providing services for goods stored in the warehouse, the warehouse owner must notify customs authorities.

  • If goods are moved from one bonded warehouse to another, it requires approval from the Customs Department.

  • The warehouse owner must submit a report to the local Customs Department every 45 days detailing the goods in storage and the warehouse’s operational status.

  • For goods that need to be destroyed due to damage, spoilage, or expiration, the warehouse owner must obtain written consent from the goods owner or their representative. Destruction must follow legal procedures.

  • Warehouse owners must maintain accurate records for goods stored and moved in accordance with regulations.

Let me know if you need further clarification or more details!