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What is a bonded warehouse?
A bonded warehouse is a place appointed and licensed by the Commissioner, where goods may be kept without payment of duty, a bond having been entered into. A bond is a legally enforceable instrument which when correctly drawn up serves as security for duty or tax.
Advantages of having a bonded warehouse
– Goods can be stored without payment of duty, thus giving the importer an opportunity to manage cash flows.
– Constant supply of raw materials can be assured in the manufacturing industry by importing in bulk and duty payments made according to production demands.
Forms of Bonded Warehouses
In terms of the Customs and Excise Act (Chapter 23:02) section 68(3), below are the different types of Bonded Warehouses.
-Bulk storage tanks, for example for tallow, fuel, etcetera.
– Two or more bulk storage tanks connected by piping
– Fenced or walled enclosure.
-Store, house, shed and should be adequately secured
How is a bonded warehouse registered and licensed?
Any person who wishes the Commissioner to appoint and license any bonded warehouse shall make an application to the local Zimra Station Manager (Customs) requesting for permission to have the warehouse approved and licensed.
This application should be made using Customs and Excise Form CE56.
What are the requirements for the approval of a Warehouse?
According to the Customs and Excise General Regulations (Statutory Instrument 154 of 2001) section 71(2)
– The warehouse must be conveniently situated near a warehousing port listed in the Customs and Excise (Ports of Entry and Routes).
-The warehouse must be secure with its doors fitted with suitable appliances for affixing the prospective licensee’s locks as well as having a provision for a Customs lock.
-Access into warehouse should be restricted.
-Windows or any other apertures must be secured with iron bars, bolted and clinched inside.
Once the above conditions have been satisfied and the application approved, the applicant is required to secure a guarantee and enter into a bond on Customs and Excise Form 125 which can be downloaded from the Zimra website.
The surety must consent to a penal sum which is determined largely by the nature and quantity of merchandise to be stored.
What are the obligations of a proprietor of a bonded warehouse?
Customs and Excise General Regulations (Statutory Instrument 154 of 2001) section 73
– To keep a record of all goods received into or delivered from the warehouse.
– To make goods easily accessible when there is an inspection.
-To place bin cards on each consignment reflecting all particulars of the goods.
– To warehouse inflammable and dangerous goods separately from any other goods.
-To ensure that no public sale is conducted within the warehouse.
-To ensure that duty-paid/ duty free stocks are not put in the bonded warehouse.
-To ensure that duty is payable immediately on deficiencies.
The warehouse should be securely locked between sunset and sunrise and no public sale shall be conducted within a warehouse.
What is the procedure for warehousing goods in bond?
Goods intended for warehousing in bond should be entered on Bill of Entry Form No. 21 together with the usual supporting import documents in terms of Customs and Excise Act (Chapter 23:02) section 40 (1)(a).
For how long may goods stay in a bonded warehouse?
In terms Customs and Excise Act (Chapter 23:02) section 76(1), the maximum period goods may remain in the warehouse is two years. Goods must be removed from the bonded warehouse before the period expires and customs duty becomes due and payable forthwith.
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Disclaimer
This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
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