Handling operations that do not change the nature of the goods can be carried out in a bonded warehouse; permission is obtained from the customs administration for them. Manufacturing operations that change the type of the goods cannot be carried out under the warehousing procedure.
The line is clear: you can split, count, label and repack the goods; but you cannot process them into a different product.
Permitted operations
- Sorting: splitting a consignment by buyer, type or size
- Weighing and counting: verifying quantity and recording it in a report
- Labelling: applying the labelling scheme the destination country requires
- Repacking: renewing or changing the packaging
- Sampling: taking a specimen for quality control
- Protective operations: reinforcing packaging, covering
What cannot be done
Any operation that changes the type, HS code or character of the goods falls outside the warehousing procedure. Cutting, processing, assembly and production come under this.
If you have such a need, you have to look at inward processing or a free zone structure.
The permission process
The handling request is notified to the customs administration and permission is obtained. In practice the customs broker pursues the application, while the warehouse operator identifies which items require permission and carries out the work.
If the quantity or packaging changes after the operation, the stock record is updated; if a sample is taken, the quantity taken is deducted from the balance.
When it is useful
Handling is indispensable for a trader who wants to split a single large consignment among several buyers. Sorting and repacking also come into play when cargo arriving by sea is transferred to road transport.
In steel the most common use is separating and labelling a coil or bundle consignment by order.