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    BondedWhse 1

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    Bonded warehouses are facilities under customs control where imported goods can be stored until customs clearance. There are several types of bonded warehouses including highway frontier examining warehouses located near borders and customs sufferance warehouses inland for goods traveling in-bond. Operators must be licensed and goods must be cleared within time limits that vary from 4 days to 15 years depending on the goods. Warehouse entries are used to enter goods and ex-warehouse entries are used to remove goods once customs duties and taxes are paid.

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    BondedWhse 1

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    api-522706
    335 views19 pages
    Bonded warehouses are facilities under customs control where imported goods can be stored until customs clearance. There are several types of bonded warehouses including highway frontier examining warehouses located near borders and customs sufferance warehouses inland for goods traveling in-bond. Operators must be licensed and goods must be cleared within time limits that vary from 4 days to 15 years depending on the goods. Warehouse entries are used to enter goods and ex-warehouse entries are used to remove goods once customs duties and taxes are paid.

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    Bonded warehouses are facilities under customs control where imported goods can be stored until customs clearance. There are several types of bonded warehouses including highway frontier examining warehouses located near borders and customs sufferance warehouses inland for goods traveling in-bond. Operators must be licensed and goods must be cleared within time limits that vary from 4 days to 15 years depending on the goods. Warehouse entries are used to enter goods and ex-warehouse entries are used to remove goods once customs duties and taxes are paid.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    335 views19 pages

    BondedWhse 1

    Uploaded by

    api-522706
    Bonded warehouses are facilities under customs control where imported goods can be stored until customs clearance. There are several types of bonded warehouses including highway frontier examining warehouses located near borders and customs sufferance warehouses inland for goods traveling in-bond. Operators must be licensed and goods must be cleared within time limits that vary from 4 days to 15 years depending on the goods. Warehouse entries are used to enter goods and ex-warehouse entries are used to remove goods once customs duties and taxes are paid.

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    of 19

    Warehouses

    • When goods enter in Canada they stay in


    some type of bonded facility until they are
    Customs cleared.

    “Bonded Warehouse” - A place of


    safekeeping, (under Customs control), of
    goods while they await Customs clearance,
    export, or destruction.
    Bonded Warehouse Types
    • Highway Frontier Examining Warehouse
    - Established to hold goods pending
    release by C.B.S.A.
    - At most points of importation
    adjacent
    the Canada- U.S.A. border.
    - Goods may not be removed from a
    highway frontier warehouse unless
    authorized to do so by Customs
    - time limit to clear goods is 40 days
    Bonded Warehouses - Types

    • Customs Sufferance Warehouses

    - Goods traveling in-bond (Not customs


    cleared) must be delivered to a Sufferance
    warehouse inland.

    - Established for the landing, storage,


    safekeeping, transfer, examination,
    delivery and forwarding of imported goods
    not released from Customs
    Warehouses - Sufferance

    • Operator must be licensed under Section 24 of the


    Customs Act & security must be provided.

    • Operator keep all records of all imports.

    • Time limits: 40 days for most goods


    14 days for tobacco,
    firearms,weapons & liquor 4 days for
    perishable goods.
    Bonded Warehouses

    • Long term Storage.

    • Used to differ payment of duties and taxes

    • Two types: Public & Private bonded warehouse.

    • Operator must be licensed under Section 24 of the


    Customs Act & security must be provided.

    • Operator keeps all records of all imports


    Bonded Warehouses – Time Limits
    • Spare Parts for Aircraft or vessels, oil-drilling
    supplies & parts, not intended for Domestic
    consumption: 15 years

    • Liquor, Wine, Beer, and other intoxicating liquors:


    5 years

    • Goods to be marked. 90 days

    • Goods subject to review as to whether they are


    prohibited or not or to determine if there is a
    copyright or trademark infringement: Indefinite

    • All other goods: 4 years


    Bonded Warehouses

    • Customs and Warehouse operator must know what


    is in the warehouse at all times. If audit shows
    discrepancies, $1000.00 to $25,000.00 fine could
    result

    • “Warehouse” Customs entries are used to enter


    the goods into the bonded warehouse and, “Ex-
    warehouse” customs entries used to take goods
    out of the warehouse.

    • If the goods change ownership while in the


    warehouse, the importer or owner submits a
    transfer document to inform Customs.
    Queens Warehouse

    • Queen’s Warehouse

    • Established and operated by Customs to store


    unclaimed, abandoned, or forfeited goods pending
    their final disposal

    • Form E44 moves goods to a Queens warehouse.

    • The goods wait 30 days in a Queens warehouse


    before disposal. If cleared while in Queens, the
    importer must pay all storage charges before
    import has access to the goods.
    Queens Warehouse

    • After 30 days in Queens warehouse the


    officers decide whether the goods are
    suitable for sale or destruction.

    • Sale price must be able to cover all charges


    owing.
    Bonded Warehouses Entries

    • Importers use Bonded warehouses to defer


    payment of duties & taxes until such a time as the
    goods are required. This allows duties and taxes
    not to be tied up, and improves cash flow,
    especially on high duty or high value items.

    • The goods have entered the country but in reality


    are not Customs cleared. Customs is aware of the
    goods; knows where they are; but only receive
    duties & taxes when the goods are taken out, or
    “Ex-warehoused”

    • The rate of duty paid is the duty rate on the date


    Bonded Warehouses Entries

    • A B3 is used to enter the goods into the warehouse


    “Warehouse entry” “Type 10”

    • A B3 is used to take the goods out of the warehouse


    “Ex-Warehouse entry” Type “20”

    • Each shipment is treated separately.


    Bonded Warehouses Entries - Types

    • Type 10 – Warehouse entry. Used to enter the goods


    into the Warehouse
    • Type 13 – re-Warehouse of goods after transfer
    (Type 30)
    • Type 20 – Ex-Warehouse for consumption

    • Type 21 - Ex-Warehouse for export.

    • Type 22 – Ex-Warehouse for ships Stores.

    • Type 30 – Transfer of Goods to another Warehouse


    Type 10 – Used to enter the goods into the

    Warehouse

    • Clears the goods from sufferance warehouse and


    allows transfer to Bonded Warehouse.

    • Tell Customs all information, except amount of


    duties and taxes.

    • Additional information: Bonded Warehouse #


    Time Limit of goods
    Quantity,
    Marks & types of Pkgs must
    be added to description field.
    Type 20 – Ex-Warehouse for consumption

    • Clears portion the importer wishes to take out of


    Bonded Warehouse.

    • Tells Customs all information, and amount of duties


    and taxes, of the goods being taken out of bond.

    • Additional information: Bonded Warehouse #


    Previous
    Transaction #.
    Quantity of goods taken out.
    Warehouse Entries

    • Importer/Broker keeps count of items remaining in


    Bonded Warehouse for each shipment.

    • The records must match C.B.S.A.’s records.

    • When ex-warehousing remainder of goods in


    shipment, must indicate “Final ex-warehouse
    transaction”.

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