Xin Hwa granted bonded warehouse licence by Customs

PETALING JAYA: Xin Hwa Holdings Bhd has been granted a bonded warehouse licence by Customs for its newly completed 220,000 sq ft warehouse in Pasir Gudang, Johor, that costs RM30 million.

With this, its total warehouse space will be increased to 464,600 sq ft from the current 244,600 sq ft.

Bonded warehouse is a warehouse authorised by Customs authorities for storage of goods in which payment of duties is deferred until the goods are removed.

In other words, local importers or proprietors who are entitled to claim back Goods and Services Tax (GST) input tax would be able to improve their cash flow position through the deferment of payment of GST and import duty.

The Johor-based integrated logistics service provider said the licence is expected to create a wide-ranging client base as it is one of the most sought after type of warehouse post implementation of the GST.

Xin Hwa managing director Ng Aik Chuan said that it is also in line with the company’s plan to continue bidding for more storage contracts to maximise the utilisation of its new warehouse storage.

For FY14, warehousing and distribution operations recorded the highest gross profit margin of 80.49%, followed by other services of 37.07% and land transport operations of 28.70%.

Moving forward, Xin Hwa is looking to expand its market presence to the east coast of Peninsular Malaysia by setting up a branch office in Kemaman, Terengganu.