Bonded warehouses are used for the distribution of goods. To explain what they are, bonded warehouses are places that are used for storing and processing commercial goods that will be exported or have been imported. If bonded warehouses are used for storing goods, the products will not be liable for custom duties, making it ideal for organisations wanting to save money on tax. However, once the goods arrive at their next location, taxes that are due will have to be paid. Bonded warehouses are either owned by businesses or are government run. The benefit of using a bonded warehouse is that they are good for making an inventory and for cashflow.

Bonded warehouses provide the opportunity to organisations and businesses to keep their goods in a place closer to their destination in order to decrease the distance for transportation. Moreover, tax payments are postponed giving companies more time to find the money if need be and can even clear the need for paying altogether. It should be apparent how bonded warehouses are so beneficial for businesses who need to trade their goods to different locations.

These types of warehouses are used by businesses of a number of different industries including the beverage industry. It is important with goods of this kind that they are stored safely, hygienically and at the right temperatures for successful and efficient distribution. Good quality Bonded Warehouse Management should ensure that everything is taken care of no matter how big or small the stock being kept is.