What is a SARS approved bond store?
A SARS approved bond store is a customs-controlled secure warehouse where imported goods can be stored, checked, or undergo value adding services*, prior to the importer paying duty and VAT; which can be deferred until the goods are sold in South Africa, or for up to a maximum of 24 months.
What is DSV’s electronic bond store?
DSV’s Electronic Bond Store (EBS) is a digital solution which provides bonded warehousing with greater control, visibility and compliance.
You will benefit from the EBS if you:
- Have a high customs duty bill and limited or infrequent stock turns on the products attracting duties.
- Are a distribution point for imported product with a noteworthy quantity of exports.
- Are currently claiming drawbacks on exports.
- Want to improve your cashflow by keeping your goods in the bonded warehouse until you are ready to complete your transaction.
- Have time-sensitive response needs which would previously have excluded a viable bonded solution.
How you will benefit from the EBS
| FINANCIAL |
ALIGNED RISK MANAGEMENT
|
Improves cash flow because duty and VAT liability is deferred until product is shipped/consumed
|
Customer – audit requirements |
Reduces costs by eliminating duplicate storage locations*
|
Customs – Automatic duty and VAT collection |
Duty drawback write offs
|
Warehouse – stock control |
| |
|
| WAREHOUSE OPERATIONS |
ADMINISTRATION |
Normal good warehouse practices
|
Fewer customs entries |
| Orders picked and shipped without delay* |
Eliminates duty draw backs |
Optimises storage utilisation
|
Accurate bond store register |
How do you acquire the benefit?
You can benefit by using a DSV-administered warehouse, which many importers do to defer the duty until such time that the goods are extracted.
Goods destined for export can also be temporarily warehoused to avoid duties.
Importers with their own warehousing facility are welcome to apply for their own bonded facility for the same benefits.
EBS features
- Agnostic to the warehouse management system (WMS), working with either DSV’s WMS or your WMS.
- It doesn’t impact normal warehousing operations process.
- Earns the trust of customs by timeously and accurately bringing outstanding duty and VAT to account.
- Eliminates the need for segregated storage of bonded and duty paid stock – and saves you the cost of a traditional bonded warehouse.
- Requires little or no integration with your WMS
How to qualify for EBS
To qualify, you must satisfy criteria in risk, warehouse operations and processing requirements.
- Risk – you need strong governance processes, a high net stock accuracy and reliable systems.
- Warehouse operations – must include effective cycle counting processing, stock adjustments processing, receiving variances processes.
- Processing – the SKU number and unit of measure (UOM) cleared into bond must be the same as used in your warehouse; the WMS must be capable to send a Stock On Hand (SOH) report; DSV must be your sole customs broker in SA.
*Requires an additional application approval from SARS