The warehouse opening and operating licence is issued by the Ministry of Trade; a place without a licence cannot be used as a bonded warehouse. The licence is granted after examining the physical conditions of the site and the financial and administrative adequacy of the operator.
This article is aimed at two readers: the firm thinking of setting up its own warehouse, and the importer who wants to know which document to ask for when working with an operator.
The main conditions required
The regulations require certain physical and administrative conditions at a place that is to become a warehouse. The detail varies with the type of warehouse and the goods to be stored; the main headings are as follows:
- Covered and/or open space suitable for keeping goods safely
- An entry and exit regime suitable for customs inspection
- A record system: inbound–outbound register and stock tracking
- Fire safety arrangements; a special arrangement if flammable goods are to be stored
- All-risk warehouse insurance
- Workplace opening and operating permit, tax certificate, trade registry record
How the process runs
The application is made through the customs office the site will be affiliated with. The site is inspected on the spot; if the conditions are met, the licence is issued and the warehouse is given a code.
The code identifies that warehouse uniquely and is used on declarations. For the detail of the process and the current conditions, refer to Ministry of Trade legislation and to your customs broker.
Does setting up your own warehouse make sense?
Setting up your own warehouse means the burden of a building, a licence, staff, insurance and continuous inspection. That investment only pays for itself with continuous, high-volume imports.
For firms bringing in a few consignments a year, or whose volume fluctuates, buying a general warehouse service is almost always more economical.
What you should ask for as an importer
If you are going to work with an operator, ask for the licence, the type and the code, and find out the affiliated customs directorate. Those three pieces of information are the shortest way to verify that the warehouse really is a warehouse.
Do not work with an operator who avoids showing these documents.