What is a public warehouse?
- An independent warehousing and distribution specialist who offers professional storage services to multiple depositors. The public warehouse takes possession of, responsibility for, but not ownership of the goods stored.
- A private warehouse is operated by the owner of the goods stored at that facility such as a manufacturer or distributor. The warehouse facility itself can be privately owned or leased.
Contract/third party warehousing.
What is contract/third party warehousing?
- This is a hybrid approach to public and private services.Unlike the public warehouse, which typically offers a month to month agreement, the contract warehouse usually has a long-term set space arrangement .
- A third party operator provides a wide variety of services for manufacturers and suppliers who decide to outsource part or all of their inventory deployment operations, including packaging, assembly or other extraordinary activities. In such cases, the contract warehouse provides an element of stability in procuring services
Bonded Warehouse.
- An importer might want to import goods and defer the payment of import duties to a later date. The procedure that is used is a bonded warehouse entry.
- An importer can obtain authorization from the Customs to place imported goods in a warehouse to be withdrawn for use or consumption at a later date.
- The advantages of a bonded warehouse entry is that no duties are collected until the goods are withdrawn for consumption.
- The importer has the luxury of being in control over the use of money until the duty is paid upon withdrawal of the goods from the bonded warehouse.
- In Malaysia, Manufacturing Bonded Warehouse is known as Licensed Manufacturing Warehouse (LMW) established under the provision of section 65/65A of the Customs Act 1967.
- LMW is a type of bonded warehouse where the manufacturing process is allowed to be carried out to produce finished goods for export. Manufacturing operation therein is subject to minimal customs procedures. It is primarily intended to cater for export oriented industries.
- Customs duty exemption is given to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacturing until the finished product is finally packed ready for export. This includes packing materials and casings.
