First thing first, what is bonded warehouse?

A bonded warehouses is defined as a site used for the

storage and processing of goods being imported into a new market. Goods stored in bonded
warehouses are not liable for customs duties. At the point the goods are delivered to their next
destination, any applicable duties become payable. Bonded warehouses can be owned by a government
or by private businesses and can be helpful in creating inventory and cashflow efficiencies. One of the
example of bonded warehouse as mentioned in the video is the “Alibaba’s Cainiao bonded warehouse”.
It is said here that Alibaba Group will organize its 11.11 Global Shopping Festival with innovative
technologies and features to satisfy evolving consumer demand. Southeast Asian consumers, including
those from Vietnam, can enjoy the festival through the Lazada platform. For overseas brands selling to
China during 11.11 Global Shopping Festival, the bonded warehouse operated by Alibaba’s logistics arm
Cainiao is a key facility to transport products to minimize delivery times. There are over 30 bonded
warehouses across China will process overseas products and clear customs in seconds. The great thing
about Customs bonded warehousing is that it saves money. When goods are imported and stored at a
Customs bonded warehouse, the duties are deferred until the goods leave the warehouse. This allows
the importer to save money on storing their goods regardless of what they intend to do with the cargo.