Operations Utilizing Bonded Storage

In the vast majority of cases, cargo procured overseas and imported to Japan is processed as import cargo upon arrival in Japan and then warehoused as domestic cargo.

There is a growing need to reconsider synchronizing import consumption tax assessment and sales accounting as part of the overall optimization of SCM, but no such review had been conducted because of the infeasibility of attaining parity with domestic warehousing, in terms of both lead time and fees, using traditional bonded warehouse management.

Nippon Express therefore developed 'IS-REWARDS', the first program in the industry to feature integrated management of warehouse inventory control systems and bonded declaration management systems, for use in Japan.

'IS-REWARDS' has allowed us to achieve speed and charges on par with domestic warehouses, use the same warehouses for ocean and air cargo, and manage this cargo using the same system, all previously considered impractical.

(Example: shipping for Company E, a manufacturer of commercial-use refrigerators and washing machines)

1. IS invoice data is prepared using warehouse receiving data from the customer and an application submitted.
2. REWARDS warehousing receiving data interfaced with the IS invoice data is prepared and checked against the actual goods.
3. The IS approval data is received and goods are placed by item number into bonded storage.
4. Warehouse delivery instruction data is prepared for the cargo in bonded storage in accordance with a shipping order from the customer.
5. An ISW invoice is prepared using the REWARDS warehouse delivery instruction data and a declaration submitted.
6. The ISW authorization data is received and the cargo is delivered from the warehouse to the final destination(s).

1. Bonded warehouses that integrate the management of ocean cargo and air cargo can be operated at costs and speeds equivalent to those of domestic logistics facilities.
2. The payment of duties concurrent with sales accounting will improve cash flow and reduce the wasteful outflow of cash towards debt stock.
3. The shortest and most optimal JIT-type operations can be conducted by having bonded parts/materials supply locations at key logistics points (airport areas, port/harbor areas).
4. Operations can be expanded to VMI-type operations, including non-resident inventory control.

IS = Import for Storage
Import customs clearance performed upon arrival at bonded warehouse

ISW = Import from Storage Warehouse
Import customs clearance performed after removal from bonded warehouse

Case Studies （Logistics Design & IT） Index

• Export B-to-B Goods
• Circulation System
• Transfer Center-Model Export Hub Operations
• Warehouse Management (Distribution Center) System
• B2C Products