1. The scope
Goods from third countries, temporarily stored in a bonded zone, then re-exported.
2. The customs interest
Whether the goods remain under bond, whether duty is deferred, and whether any processing changes origin.
3. The origin point
Goods stored in a bonded zone without processing retain their original origin.
Goods processed in a bonded zone may change origin, depending on the rules of the destination’s origin regime.
4. The documentation
Entry declaration into the zone.
Storage records.
Exit declaration.
Where processing occurred, records of that processing.
5. The transit issue
Goods stored in a bonded zone in a third country before shipment to the destination may fail the direct transport rule of a preferential agreement.
Bonded storage is generally acceptable where the goods did not enter the commerce of the intermediate country, but the evidence has to be produced.
6. The evidence
A certificate of non-manipulation from the bonded zone operator.
Transport documents showing the full journey.
7. A scenario
A trader stored goods in a bonded zone in Singapore for three months before shipping to an FTA partner.
At destination, the preferential certificate was challenged on direct transport grounds.
The trader produced the non-manipulation certificate and transport documents covering the full movement, and the preference was upheld.
8. The lesson
Bonded storage does not break the chain, but only if the documentary evidence exists.
9. Closing view
Bonded zones are efficient. They are also a documentation obligation, because the origin chain has to be provable across them.
*This article is based on bonded zone arrangements and the direct transport provisions of China’s free trade agreements. Exporters should confirm requirements with China Customs and the destination customs authority.*