A bonded warehouse is a secure storage facility licensed by SARS where imported goods can be stored without paying customs duty or VAT until they're needed. It's a powerful cash flow tool for importers.
How Bonded Warehousing Works
- Goods arrive at Durban Port or King Shaka Airport
- Your clearing agent enters the goods into a bonded warehouse entry (instead of a direct import entry)
- Goods are transported to the bonded facility under customs seal
- No duty or VAT is payable while goods remain in bond
- When you need the goods, you lodge a customs entry, pay the duty and VAT, and release them
- You can release goods in batches — only paying duty on what you take out
Benefits of Bonded Warehousing
1. Cash Flow Management
The biggest advantage. Instead of paying R500,000 in duty upfront for a large shipment, you pay duty only as you release goods. If you release 10% per month, you spread the duty payment over 10 months.
2. Reduced Risk
If market conditions change or goods don't sell, you can:
- Re-export goods without paying any SA duty
- Transfer to another bonded facility
- Dispose of damaged goods under customs supervision
3. Quality Control
Inspect goods in the bonded facility before committing to duty payment. If goods are damaged or don't meet specifications, handle claims before paying duty.
4. Regulatory Compliance
Store goods while waiting for import permits, NRCS approvals, or other regulatory clearances.
Types of Bonded Warehouses
| Type | Code | Purpose |
|---|---|---|
| General warehousing | CW | General storage of imported goods |
| Manufacturing | MWH | In-bond manufacturing and processing |
| Container Freight Station | CFS | Unstuffing and consolidation |
| Special storage | Various | Specific product requirements |
Who Benefits Most?
- Regular importers with large, frequent shipments
- Distributors who release stock progressively
- Importers of seasonal goods (e.g., retail stock for peak season)
- Traders who may re-export goods
- Manufacturers using imported raw materials
Costs
Bonded warehouse costs include:
- Handling fees — Loading, unloading, inventory management
- Storage fees — Per CBM or per pallet per day/week
- Insurance — Required while in bond
- Customs entries — Each release requires a customs entry
These costs are offset by the duty deferral benefits for most businesses.
V & S Freight's Bonded Services
We coordinate bonded cargo handling at licensed facilities in Durban. Our clearing team manages all bonded entries, releases, and SARS compliance.
Learn more about our bonded cargo services → | Get a quote →