Detailed explanation of bonded stocking model: process, characteristics and challenges

What is the bonded stocking model?

The “online shopping bonded import” model, also known as the bonded “stocking model”, refers to importing overseas goods into the bonded area in batches, storing them in the bonded area and establishing an entry filing list. When a consumer places an order online, the product is shipped directly from the domestic bonded warehouse and undergoes import customs clearance, and then is delivered to the consumer via domestic express delivery.

Process of bonded stocking model

Preparation before importing

• Cross-border e-commerce companies pass preliminary registration and prepare goods according to the requirements of the “Positive List”.
• Cross-border e-commerce companies take the initiative to apply for inspection.
• After passing the inspection, it will be kept; for goods whose categories are in the “positive list”, the customs will release them.

Warehouse and warehousing management

• After the goods enter the bonded logistics center, the warehouse receives the goods for quality inspection and puts them on the shelves.
• The goods are stored in bonded area warehouses and stored in customs supervision locations.

The process after consumers place an order

• When consumers place orders on cross-border e-commerce platforms, cross-border e-commerce companies are responsible for proactively bonding and paying taxes. After paying, consumers submit their personal ID information on the platform.
• National Inspection and Quarantine will conduct random inspections, and the goods that meet the requirements will be released by national inspection and customs, and the bonded logistics center will pick and export the goods.
• The products are delivered through domestic logistics companies.

Characteristics of bonded stocking model

High logistics timeliness

Since the goods have been stored in the bonded logistics center in advance, after the consumer places the order, the customs declaration, picking, packaging and other steps can be completed quickly and delivered directly to the consumer. The logistics time is usually only 2 to 3 days. .

Support convenient returns

According to the regulations of the General Administration of Customs, returned goods should be transported to the original supervision location in their original condition within 30 days from the date of release by the customs. The corresponding taxes will not be levied, and the cumulative annual transaction amount of the individual will be adjusted.

Cost advantage

• Significantly reducing import link taxes and fees.
• Centralized procurement can significantly reduce the purchase cost and logistics cost of goods.

Quality Assurance

Bonded stocking is strictly monitored throughout the entire process of import customs clearance, inspection and quarantine, and the information on each process is transparent, which can better ensure product quality and consumer rights.

Challenges faced

• Inventory control problems: Because of the stocking inventory model, how to accurately predict market demand has become a big challenge.
• Insufficient flexibility: For emerging or low-volume products, this model may have difficulty responding to market changes in a timely manner.
• Supply chain risk: Improper product selection may lead to inventory backlog and increase business costs.

To sum up, the bonded stocking model provides efficient logistics solutions for cross-border e-commerce, but it also brings challenges in inventory management and market adaptability.