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Businesses urged to support bonded warehouses
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Posted on Jan 18 2005
The Division of Customs Service is urging businesses to support the bonded warehouse program by either storing merchandise in existing facilities or operating a private warehouse.
Customs director Jay Santos reported that his office has yet to receive any serious inquiries from businesses that may be interested in bonded warehouses, since the duty deferral program became effective late last year.
“We’re trying to get the word out and find out if there is any company or individual interested in availing of the program,” said Santos, who was the guest speaker at the Saipan Rotary Club meeting at Hyatt Regency Saipan yesterday.
He is scheduled to make a similar presentation to the CNMI Free Trade Zone Authority today and to the Saipan Chamber of Commerce at a later date.
Bonded warehouses are areas in which dutiable goods may be stored or undergo manufacturing operations without payment of duty, Santos explained.
He said that bonded warehouses help improve a business’ cash flow since excise tax and business gross revenue tax are deferred until goods are actually needed for buyers or production.
Under the program, the importer and warehouse proprietor incur liability under a bond as soon as goods are entered into the warehouse. This liability is cancelled when the goods are exported; withdrawn for supply to a vessel or aircraft in international traffic; destroyed under Customs supervision; or withdrawn for consumption within the CNMI upon payment of duty.
Bonded warehouses may be private or public. They may also be an in-bond manufacturing facility used solely for production of articles—made in whole or in part—of imported materials, or a facility established for cleaning, sorting or repacking of imported merchandise.
Santos said all bonded warehouses should be licensed by the Department of Finance. License fees range from $1,000 to $5,000.
