Strict customs regulations are applied to any import of alcohol products in Australia, these include GST and Wine Equalisation Tax.
Import duties are applied to these when they enter the country, and can add a lot of additional costs in importing products.
Retail distribution of alcohol requires careful and stringent handling, to ensure that the products are delivered to their outlets consumer ready.
When a company engages a dedicated customs logistics company, there are a number of advantages.
- Bonded Logistics Warehouses are Cost Effective
Having imported alcohol stored in refrigerated, secure facilities, in an economic zone warehouse allows a company to import these products without having to pay duties up front.
Import duties can cost thousands of dollars, and bringing in large amounts of product into the country, and being liable for duties up front can cause problems with cash flows.
A free zone warehouse is a special economic zone set up by a government to allow business to import goods into the country freely, and only be liable for the duties as the goods are released from the warehouse.
This allows for a better flow and control over stock management, and for being liable for duties.
As consumers purchase imported alcoholic goods, and the retail outlets require more stock, it can be released from the warehouse as it is needed.
The liability for duties is only raised when it is close to being sold to consumers, which removes a large costing to the company, allowing for better retail profit margins. It promotes better management and is far more cost effective to import goods into a bonded warehouse.
- Excess Goods Can Be Returned to Place of Origin
When goods are not sold, or no longer required, if they have been stored in a bonded logistics warehouse, they can be exported back to their place of origin without having to be liable for any duties or other government taxes.
This represents a significant cost saving for companies. Having a customs logistics warehouse makes sense for inventory management controls, and the goods cost less overall to store when they are in a secure free zone warehouse.
Free economic zones are fully insured, secure and temperature controlled, ensuring that all goods stay completely intact and can be deployed rapidly either back to the place of or to retail outlets for sale to consumers.
Being able to send goods back to the manufacturers quickly and rapidly, and apply refunds for those goods ensures that a company will not experience significant financial losses through having to claim a refund on the import duties and dealing with government bureaucracies.
These especially dedicated zone warehouses are convenient and make transport and distribution more efficient and cost effective.
- Bonded Logistics Assists With Bulk Shipping
In order to reduce transport costs and move goods around more efficiently, a lot of liquor manufacturers have designed ways of handling and storage that are far more convenient and effective.
Bulk movement of items such as wine, where the liquid is filled into a single large container rather than individual bottles allows for a large volume of product to be moved.
When combined with a customs zone warehouse where goods can be stored and then bottled prior to release from the warehouse, as the consumer requires it, it reduces a lot of the cost and headaches from the alcohol logistics process.
Given that different countries and states have a lot of different laws, and duties associated with alcohol, it makes sense to invest in ways that make transport and distribution of liquor more efficient and smarter when it comes to dealing with import duties and customs laws.
Bonded warehouses are an ideal solution for enterprises that want to reduce the amount of time spent in handling compliance.
Alcohol logistics companies are also experts in understanding all the necessary compliance with importing dutiable goods, and how to best manage product inventory to reduce cost imposts.
Customs zone and Alcohol Logistics Companies work closely in partnership with alcohol manufacturers and retailers, in order to create the most cost effective and bureaucracy free platforms for handling alcohol and other dutiable goods.
The knowledge held by these companies who work flexibly with a market and industry subject to a lot of fluctuations helps maximise product integrity and retail profits.
When manufacturers have to deal with issues such as poor harvests, or a large production run, and fickle consumer markets that rise and fall with economic cycles, 3pl Australia companies help create systems of distribution that are smart, effective and comply with regulations.
Free economic zone and alcohol logistics companies have much to offer the alcohol and dutiable goods industry, both manufacturers and retailers.