Bonded Warehouse and Supply Chain Management issues(Part-1):


As Customers are at the end of the network that need certain product or services ,Supply Chain Management is the management of networks and channels involved to serve the customer. SCM covers the movement and storage of raw materials,WIP and finished goods from point of start to point of use the finished goods or services. Export is under the supply chain network. And an export processing zone is one of many export promotion tools including bonded warehouse, and other schemes.

An integrated approach:

To  serve the customer,  Supply  Chain  Management  need  to  design,  plan,  execute,  control and  monitor  Supply Chain activities. And their objective is to create and increase value of the Supply  Chain,   build   necessary  infrastructure, leverage  logistical  needs,  supply  and  demand,  and measure  performance even  at  the  global  level. SCM tends to be an integrated approach along with logistics, procurement, and operations management and information technology.

A Bonded warehouse:

This is a building or secured area in which dutiable goods are usually stored or manipulated or manufactured without payment of duty. These building or areas are managed by state or otherwise controlled by private companies. All developed countries have this kind of bonded warehouses.

Bonded Logistical Parks:


EPZs are bonded logistical parks which have trade arrangements similar to that of bonded warehouses but over a specific geographic area. Sometimes, they have international port capabilities. Goods may be manipulated or undergo manufacturing operations after being stored without paying duty.


Customs supervision:

There is a bond between importer and warehouse provider or EPZ authority/government. The bond is cancelled when the goods are exported or supposed to be exported per law of the government. Or Supplied to airport or sea shipment process. Or destroyed per customs approval or domestically used paying customs duties. In the EPZ type of bonded warehouses are under customs supervision of the respective country and are integral parts of global supply chain.

There are several kind of Special Economic Zones in addition to EPZs.Which are called EPZ,FTZ,SEZ etc. with some differentiation of size and functions:






All these SEZs are contributing to international Supply Chain  and the national economy. Previously, the third world countries were mostly import based.Superposition policy of bonded zone and export processing zone is implemented in bonded logistics park. Once domestic goods enter the park, they are regarded as export and exporter shall handle customs formalities and can get tax rebate immediately. Goods from the park sold domestically shall be regarded as import and importer shall handle customs formalities accordingly. Goods are taxed predicated on its on-spot state. [1]


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