![What are the Differences? General Warehouse vs Bonded Warehouse](/namoImgView.do?nfile=/images/000081/841fc538-cc20-4816-b710-cb40043b4ef8.jpg)
1) General warehouse (public warehouse)
Warehouses that provides storage and various services to multiple customers on a rental basis.
2) Bonded warehouse
Warehouses where imported goods can be stored before they are cleared through customs.
3) Logistics center (distribution center)
Warehouses that acts as an intermediary between manufacturers and retailers, where large quantities of goods can be stored in a short period of time, and serves as the center of distribution.
4) Refrigerated/frozen warehouse
Warehouses for storing perishable foods, pharmaceuticals that need to be stored at low temperatures to preserve quality, etc.
5) Cross-docking warehouse
Warehouses where goods can be efficiently transferred from one mode of transportation to another by reducing storage time.
6) Large warehouse
Warehouses that stores large quantities of one type of product, such as grain or raw materials, and is usually located near production facilities.
7) Private warehouse
Warehouses owned and operated by individual businesses, storing goods specific to their business.
8) Automated warehouse (fulfillment center)
Warehouses that focus on picking, packing, and shipping individual customer orders, and utilize advanced technology such as robotics and automated vehicles to streamline operations.
![Definition : General Warehouse](/namoImgView.do?nfile=/images/000081/6fcc7da9-860b-4b98-989d-1ed146e7edb4.jpg)
![Characteristics : General Warehouse](/namoImgView.do?nfile=/images/000081/46c1dd20-a218-449f-9bd2-ec0a36a75b0b.jpg)
![General Warehouse image](/namoImgView.do?nfile=/images/000081/b7760b7c-80ec-4b5e-a073-fffeb22f9eee.jpg)
![Definition : Bonded Warehouse](/namoImgView.do?nfile=/images/000082/a4a5a400-3db0-4ad5-beb9-9d6426f2a7a3.jpg)
Bonded warehouses can only be operated by those with certain qualifications, such as shipping companies. Bonded warehouses are places where goods are temporarily stored before taxes are paid, usually near a port or airport, and the goods stored are mostly imports. Different bonded warehouses have different rates depending on the quantity and capacity of goods, and therefore it is important to plan ahead when importing goods.
![Characteristics : Bonded Warehouse](/namoImgView.do?nfile=/images/000082/024039c5-8b9d-4cbd-b508-255778d6e77d.jpg)
![Bonded Warehouse Inbound Process](/namoImgView.do?nfile=/images/000082/52d54b44-4287-4221-9f76-938c4acc4b86.jpg)
![Types : Bonded Warehouse](/namoImgView.do?nfile=/images/000082/c965d1be-f512-4e69-9361-7afbb428f2a9.jpg)
Public bonded warehouse
A warehouse owned and operated by the government, and is open to anyone.
They are used to store goods that have been imported into a country but are not intended to be sold in that country.
Private bonded warehouse
A warehouse owned and operated by a private party that stores goods allowed by its customers to be sold. They are used to store goods that have been exported from a country and are intended for sale in that country.
Customs bonded warehouse
A warehouse that is privately owned and operated, but regulated by the government, where goods are stored for sale in the country from which they were imported.
Duty-free bonded warehouse
A facility owned and operated by a third-party logistics provider that stores goods for sale in the country of import, but is exempt from taxes or duties.
![Bonded Warehouse image](/namoImgView.do?nfile=/images/000082/54b20528-10b9-4054-9bc4-82099e36e115.jpg)
![Advantages : Bonded Warehouse](/namoImgView.do?nfile=/images/000082/fb03889c-ed86-45a2-89cf-b22a2cd0e780.jpg)
As duties are paid when goods in a bonded warehouse are re-exported, importers can minimize the tax burden and manage their goods efficiently.
Geographical advantages
Most bonded warehouses are located near major ports, where products can be stored until their scheduled distribution date. This saves costs in the supply chain, including lead times and transportation costs.
Long-term storage
Different bonded warehouses offer different terms, but in general, goods can be stored for up to five years at no extra cost, giving importers flexibility to manage their inventory according to market conditions where they can store goods until the economic market recovers from excess demand.
Value-added services
Bonded warehouses offer a wide range of services, including labeling, sorting, repackaging, and assembly of goods, allowing importers to customize their products according to market demand and distribute them to specific locations.
Simplified processes
By providing a single point of contact for all of importers’ storage needs, importers can simplify their processes by not having to deal with multiple contacts or vendors. Importers can also quickly identify and resolve questions and issues with their stored goods.
![Definition : U.S. Foreign Trade Zone (FTZ)](/namoImgView.do?nfile=/images/000082/96d1bce2-fced-4534-877e-9c2405786326.jpg)
Like a bonded zone, it is exempt from import duties and taxes, but unlike a bonded warehouse, which must be licensed and regulated by authorities before it can be re-exported, it can be processed, manipulated, and manufactured. FTZs are categorized into Privileged Domestic, Privileged Foreign, Non-privileged Domestic, and Non-privileged Foreign FTZs.
![Advantages : U.S. Foreign Trade Zone (FTZ)](/namoImgView.do?nfile=/images/000082/b346a35c-7a05-4ecf-8491-ff653d95605d.jpg)
By utilizing FTZs, it is possible to streamline customs procedures to save time, reduce costs, and improve global competitiveness.
Supply chain management
Since products can be stored, manipulated, and manufactured, FTZs are useful for supply chain management by managing products before re-export in response to changes in the market.
Indefinite storage
FTZ warehouses can store goods indefinitely, allowing you to manage inventory according to market demand and fluctuations, which can improve efficiency.
![General Warehouse vs Bonded Warehouse Q&A](/namoImgView.do?nfile=/images/000082/dbedefe1-2308-4707-b642-320fe1d953d0.jpg)
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However, since bonded warehouse is where import procedures are not completed, importers can store the imported goods in a bonded warehouse before declaring the import and then export them to a foreign country to mitigate the cost risk.
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