EARLIER this year, Daizen Myanmar became the first company in the country to establish registered bonded warehouses.
Bonded warehouse allows the storage of foreign cargoes held on account, i.e. storing cargoes before paying customs duty and commercial tax.
On a more technical level, cargoes held on account refers to cargoes in transit for storage in free zone warehouse pertaining to the temporary storage of cargoes from a foreign supplier without payment of duties and other taxes until such cargoes are sold or shipped out of the country.
By having bonded warehouses, goods can be taken out of the ports before going through the customs clearance process. This saves a lot of time and improves the congestion situation.
Currently, bonded warehouses are only permitted in Thilawa SEZ.