Did you know… Customs Bond Stores are part of a Government dispensation to help your company improve its cash flow and to save money?
This benefit can be attained over a period of two years from importation. In addition, you can extend this period when combined with similar Government dispensations.
Types of Bond Stores
The Two Broad Categories of Bond Stores Include:
- OS (Operating Store) – a standard Bond store for the storage of goods.
- SOS (Special Operating Store) – a special Bond Store for the storage of goods for specific or special circumstances.
Customs duties and VAT may be deferred for a period of up to two years in a Bond Store. Thereafter, one is obligated to clear the goods Ex Bond and pay the duties and VAT.
Numerous other Ex Bond options are available such as Rebating, Change of Ownership and Re-Exportation of goods.
Public and Private Stores
The new Customs legislation makes a clear distinction between Bond Stores which are intended for “Private” use, and those which are intended for “Public” use.
- Private Bond Stores: These are used by importers who own their own Bond Store not for other parties.
- Public Bond Stores: These are owned by Customs Clearing Agents, Customs Licensed Depots and the like. They are intended to be open to all clients.
The Customs Hub specialises in Bond Store applications, as well as applications for Surety Bonds.
We help our clients with Surety Bond calculations. Importantly we are able to obtain client data directly from SARS for this purpose.
Please Contact us for advice or a quotation.
I am not sure what is the surity amount required for a bond store. my understanding is that this facilty can be with your bank. Does it means that the facilty is taken out of working capital or can you still trade as normal
The guarantee is with your bank, and it is ceded to SARS Customs to cover duties and VAT. How you negotiate this with your bank (i.e., cash or other form of suretyship) is up to you.