About Bonded Area


About Bonded Area !

Explained about Bonded Area by Video


This video takes 4min. and 53sec. !

Hello, it’s IINO.

This time, I would like to talk about the theme of Bonded Area.

As I explained on the previous video, there is Bonded in trade and international logistics. Bonded means the cargo which is in country, but is treated as a foreign cargo.

For more details, please see the video “Explanation Basic of Bonded Logistics” for a detailed explanation.

There are certain places where the cargo of Bonded Status can be stored, and they are called Bonded Area.
In this video, we will take a closer look at the purpose and function of Bonded Area.

Let’s get started !

Five types of Bonded Area

Firstly, there are five types of Bonded Area, depending on their function and purpose.

・Designated Bonded Area
・Bonded Warehouse
・Bonded Factory
・Bonded Exhibition Place
・Comprehensive Bonded Area

Please note that the information given here is based on the Japanese Customs Law, therefore the names and systems may differ in other countries.

Let’s look at them one by one.

Designated Bonded Area

At first, I will explain about Designated Bonded Area.

Designated Bonded Area is an area, which is, in case in Japan, designated by the Minister of Finance, in public land and public facilities, which owned and managed by the national or local government.

The Bonded Area means a container yard, which is always used in international logistics, and foreign goods can be temporarily stored, after being unloaded from vessels. The Bonded Area is located close to the customs offices to simplify and speed up the customs procedures.

Bonded Warehouse

The next thing is Bonded Warehouse.

Bonded Warehouse is a warehouse or cargo facility, owned by a forwarder or other company and licensed by the customs authority. CFS for LCL shipment and Sheds for air shipment are examples of this.

It is mainly intended for the loading, unloading and storage of cargos. In the case of imports, no duty is payable for the period of storage.
You can sort cargos, label them or do other simple tasks.

Bonded Factory

Bonded Factory is Bonded Area where you can process and manufacture the foreign cargos. It is mainly used for processing trade.
Imported raw materials are not taxed, and can be re-exported after processing in Bonded Factory.

A wide range of products are produced in Bonded Factory, including canned fish and shellfish, confectionery, steel products, electric cables, ships, automobiles, and precision machinery.

In Thailand, where I work, the factory called “Free Zone” is located in a Bonded Area. In some countries there is not such thing as a Bonded Factory, but rather a factory in Free Zone.

Bonded Exhibition Place

Bonded Exhibition Place is considered to be a venue for the display of foreign goods.

It is a place, where foreign goods can be displayed without customs duties. It is used for international expositions and product exhibitions, where goods can be displayed and stored with simple customs procedures.

If you hold any international exhibition without using Bonded Exhibition Place, you will have to apply for duty-free, using the Re-export Duty Free Scheme or ATA Carnet.

Comprehensive Bonded Area

Comprehensive Bonded Area is considered to be Bonded Area, that has the comprehensive functions of three Bonded Areas, Bonded Warehouse, Bonded Factory and Bonded Exhibition Place.

In Japan, these include the Central Japan International Airport, and the Yokohama International Distribution Centre.


In this video, I explained Bonded Area. If you are a beginner in trade, it is fine to understand that each Bonded Area has its own purpose and function.

In the next video, I will talk why Bonded is important in trade. It will also relate to the Bonded Area explained in this video.
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That’s all for today! Thank you!

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