If you are a business involved in import and export, you are likely interested in bonded warehouses. Bonded warehouses have specific functions, roles, and regulations that differ from regular warehouses. In this article, VICO Logistics will provide basic information about bonded warehouses, a list of bonded warehouses in Vietnam, and new regulations regarding import and export at bonded warehouses.

1. What is a bonded warehouse?

    1.1 Definition 

According to the Customs Law of 2014, a bonded warehouse is an independent and separate area used for storage, preservation, or other activities with goods that have undergone customs procedures, waiting for exportation abroad, or goods brought in from abroad waiting for re-export or import into Vietnam.

Bonded warehouses are established within the territory of Vietnam, separated from the surrounding areas, and controlled by the Customs authority. Bonded warehouses can be established and operated by domestic or foreign organizations and individuals by the law.

Bonded warehouses are considered non-customs areas, meaning that goods entering bonded warehouses are not subject to immediate import duties, only when the goods are imported into the domestic market. Conversely, goods exported from bonded warehouses abroad are not subject to export duties. 

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    1.2 Functions, roles of bonded warehouses

So, what are the functions of bonded warehouses, and how do they contribute to businesses? The following content will address these questions.

Bonded warehouses have the following functions and roles:

• The storage area is for imported or exported goods while waiting for customs procedures.
• Area for performing services related to goods such as packaging, sorting, inspection, repair, recycling, etc.
• Area for conducting buying and selling activities and transferring ownership of goods between organizations and individuals domestically and internationally.
• Area that facilitates consolidation, sorting, and distribution of goods for import and export businesses. 
  
  

    1.3 Related Regulations

The regulations related to bonded warehouses are stipulated in the following legal documents:

• Customs Law of 2014
• Decree No. 08/2015/NĐ-CP dated January 21, 2015, of the Government on customs management of imported and exported goods.
• Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance guiding the implementation of some provisions of Decree No. 08/2015/NĐ-CP
• Circular No. 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance amending and supplementing some provisions of Circular No. 38/2015/TT-BTC

2. List of bonded warehouses in Vietnam

    2.1 Overview

According to Circular No. 38/2015/TT-BTC, there are three types of bonded warehouses in Vietnam, including:

• Commercial bonded warehouses are warehouses built, installed, or leased to store goods for export, import, or transit under customs supervision.
• Specialized bonded warehouses are warehouses built, installed, or leased to store goods in specific industries, professions, or areas specified by the Prime Minister.
• Self-managed bonded warehouses: warehouses built, installed, or leased and approved by the customs authority for self-organization and management by the warehouse owner.

As of 2023, Vietnam has approximately 175 bonded warehouses nationwide, distributed in 22 provinces and cities, including:

• Northern region: concentrated in Hanoi, Hai Phong, Bac Ninh, Hung Yen, Vinh Phuc, Thai Binh, Nam Dinh,...
• Southern region: concentrated in Ho Chi Minh City, Binh Duong, Dong Nai, Ba Ria-Vung Tau, Long An, Tien Giang, etc.
• Central region: concentrated in Da Nang, Quang Nam, Quang Binh, etc.

2.2 The Bonded warehouse of city/province list 

In addition to understanding the concept, functions, and roles of bonded warehouses, businesses need to be aware of the latest regulations on customs procedures for this type of import and export.

Specifically, based on Article 2, Clause 3 of Decree No. 90/2007/NĐ-CP dated May 31, 2007, of the Government; Article 5, Clause 3 of the Foreign Trade Management Law of 2017.

Based on point c, Clause 1 of Article 35 of Decree No. 08/2015/NĐ-CP dated January 20, 2015, of the Government, and point c, Clause 1 of Article 86 of Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance regulating customs procedures for goods exported and imported in place:

"Goods traded between Vietnamese businesses and foreign organizations or individuals without a presence in Vietnam and designated by foreign traders for delivery and receipt by other businesses in Vietnam."

Therefore, according to the regulations, businesses do not perform in-place import and export activities if foreign traders are present in Vietnam.

In the case of businesses trading with partners falling under point c, Clause 1 of Article 35 of Decree No. 08/2015/NĐ-CP dated January 20, 2015, of the Government, businesses will carry out customs procedures through bonded warehouses or conduct the purchase and sale of goods with added value.

Goods Prohibited from Being Stored in Bonded Warehouses as per Decision 27/2020/QD-TTg dated September 21, 2020

Decision 27/2020/QD-TTg dated September 21, 2020

This decision outlines specific goods that are prohibited from being stored in bonded warehouses. Here are the main categories:​

• Cigarettes: Cigarettes made from tobacco leaves or substitutes, including those with the brands 555 and Esse that are not of Vietnamese origin.
  
• Whiskey: Whiskey with a volume exceeding 50ml that is not of Vietnamese origin.
  

Note: The provided codes (24.02.20 and 22.08.30.00) are likely harmonized system (HS) codes used for classification of goods in international trade.

Services Provided in Bonded Warehouses

A bonded warehouse is a versatile logistics center that offers a variety of services to support import and export activities. These services include:​

• Processing: Modifying, adding to, or completing a product to meet market demands.
  
• Packaging: Repackaging goods into suitable containers for storage and transportation.
  
• Sorting: Categorizing goods based on type, size, quality, or other criteria for easier management and import/export.
  
• Sampling: Taking samples of goods for quality, composition, and other tests as required by customs authorities.
  
• Transfer of Ownership: Completing the legal procedures to transfer ownership of goods from one party to another.
  
• Blending and Conversion: (For specialized bonded warehouses) Mixing or transforming goods to create new products.

Conclusion

So, in summary, what is a bonded warehouse? A bonded warehouse is a type used to store imported or exported goods without immediate customs duties. Import and export businesses can use bonded warehouses to minimize costs and increase operational efficiency. However, companies must also comply with legal regulations regarding bonded warehouses, especially new regulations on in-place import and export at bonded warehouses.

In-place import and export are considered a flexible and cost-effective solution for import and export businesses. However, companies must choose a reputable and professional logistics partner to conduct efficient and safe import and export in-place.

VICO Logistics is one of the leading logistics companies in Vietnam, with extensive experience in the transportation and delivery sector. VICO Logistics has a bonded warehouse network in major cities such as Ho Chi Minh City, Da Nang, Hai Phong, etc. VICO Logistics will support businesses in completing customs procedures for in-place import and export quickly and conveniently.

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