Learn what bonded warehouses are, how they work in Malaysia, and the benefits for businesses dealing with import/export, customs, and tax-efficient storage
What is a Bonded Warehouse?
A bonded warehouse is a secured facility licensed by Royal Malaysian Customs Department (JKDM) that allows businesses to store imported goods without paying duties or taxes upfront. These taxes are only payable when the goods are released for local consumption.
Bonded warehouses are vital for importers, exporters, manufacturers, and logistics companies managing international supply chains.
How a Bonded Warehouse Works in Malaysia:
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Importers ship goods into Malaysia
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Goods are stored at a licensed bonded warehouse (no import duty or SST yet)
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When the goods are:
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Re-exported ? No taxes paid
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Distributed locally ? Import duties & taxes apply at release
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Customs monitors goods under bond until clearance
Types of Bonded Warehouses in Malaysia:
| Type | Description |
|---|---|
| Public Bonded Warehouse | Operated by licensed third parties; open to multiple companies |
| Private Bonded Warehouse | Owned by a specific company for internal goods (e.g., manufacturers) |
| Licensed Manufacturing Warehouse (LMW) | For approved manufacturers under LMW scheme |
| Free Commercial Zones (FCZ) | Strategic zones like KLIA, Port Klang, Tanjung Pelepas offer bonded status |
Who Should Use a Bonded Warehouse?
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Import/export traders
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E-commerce cross-border sellers
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Third-party logistics (3PL) providers
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Manufacturers with overseas raw materials
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Companies serving international clients
Key Benefits of Bonded Warehousing:
Deferred Duty & Tax Payments
Delay import duty, SST or excise tax until goods are sold locally.
Cash Flow Management
Reduce immediate cost pressure by paying duties only when needed.
Customs Compliance
Operate under regulated conditions with clear documentation and inventory tracking.
Export-Oriented Flexibility
No duties if re-exported from Malaysia, ideal for re-distribution hubs.
Improved Supply Chain Control
Centralized inventory storage for SEA regional distribution.
Popular Bonded Warehouse Locations in Malaysia:
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Port Klang Free Zone (PKFZ)
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Westport & Northport Logistics Zones
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KLIA Free Commercial Zone
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Senai Airport Free Industrial Zone (Johor)
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Tanjung Pelepas Port (PTP), Johor
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Penang Free Industrial Zone (FIZ)
Requirements for Setting Up a Bonded Warehouse:
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Must apply for license via JKDM (Customs)
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Comply with Customs Act 1967 & Free Zone Act 1990
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Install CCTV, bonded storage software, and maintain inventory reports
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Ensure security fencing and access controls
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Appoint a Customs agent or clearance officer
Growing Demand in Malaysia:
With the growth of:
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Cross-border e-commerce
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Regional logistics consolidation
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China–Malaysia–Singapore shipping routes
bonded warehouses are becoming a core part of industrial real estate demand in Malaysia.
How Terra Group Can Help
At Terra Group, we assist:
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Multinational companies and logistics firms find bonded-ready warehouses
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Developers plan bonded infrastructure (guardhouse, fencing, CCTV, customs rooms)
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Buyers identify land near free trade and customs-friendly zones
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Companies connect with Customs licensing experts
