bonded warehouse FQA

What is a bonded warehouse ?

 Bonded warehouses are selected facilities approved by CBSA that allows companies to defer payment of custom duties until their products are sold into the market. 

What are the advantages of a bonded warehouse ?

As business being able to defer custom taxes until the product enters the market can greatly benefit cash flow.

Avoidance off double taxation: Canada has trade agreements with a few countries around the world, but not with all of them. If exporting to a country that Canada does not have a trade agreement, as an exporter you will be charged exporting duties as well as duties at the destination. A bonded warehouse can help with the exporting duties. 

Bonded warehouses are warehouse with increased security programs, and that translates into very safe inventory storage. 

How long can goods stay in a bonded warehouse?

 Inventory can be stored for 4 years in a bonded warehouse from the moment the inventory enters the warehouse.