Bonded warehousing (B2B2C) is a quicker option in terms of logistics to sell products in China via cross-border e- commerce. A bonded warehouse is a building or secured area in a special customs supervision area in China where dutiable goods may be stored without payment of duty. So, ordered products generally arrive quickly at the customer’s home.

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Only if a brand’s goods are on the positive list, it can consider holding its goods in stock in a bonded warehouse. Simplified and faster product registration will apply, overseas companies can postpone import duty and VAT charges, and it is easier to move their revenue to a foreign bank account. Furthermore, no local Chinese business entity is required.

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Therefore, bonded import is an excellent method to test new products on the Chinese market. By stocking a small initial batch of goods in bonded warehouses, which can quickly be distributed to the Chinese consumer, companies can simulate selling CBEC in China without risking large losses as a result of high investment in stock. Thus, for new to the market, medium turnover, or larger items with steady demand, reasonable stocking in China is advisable to decrease operational costs, logistics costs and turnaround time.

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Please refer to below graphic to understand the China Bonded Warehouse process: