Bonded goods exit via domestic sale, re-export, inter-bonded transfer or temporary exit. This guide details the domestic-sale customs filing process, dutiable value rules and reference rates for wine and perfume.
Putting goods into a bonded warehouse defers the tax bill — it does not cancel it: the duty is settled the moment goods exit the zone. Many traders clear the warehousing step smoothly but get stuck when selling into the domestic market: Do I need to file customs on exit? Which price is taxed? How many duties apply to wine or perfume? This guide explains the domestic-sale exit process and tax treatment under the Administration Rules of Customs on Bonded Warehouses and Goods Stored Therein (General Administration of Customs Order No. 105, as amended), with actual implementation subject to on-site customs determination.
1. Four Ways Bonded Goods Can Exit the Warehouse
Exiting a bonded warehouse is not a one-way street. There are four main exit scenarios with very different tax treatment:
| Exit mode | Typical use | Tax treatment | Key formalities |
|---|---|---|---|
| Domestic sale | Goods sold into the domestic market | Pay customs duty, import VAT (and consumption tax if applicable) on actual exit status | Import filing, duty payment, release |
| Re-export | Goods shipped out again or transshipped to a third country | No import duties | Export filing or transit formalities |
| Inter-bonded transfer | Transfer to another bonded warehouse/facility | Bonded status continues, no duty | Customs approval, transfer filing |
| Temporary exit | Exhibitions, repair, testing | Security required, goods must return within the approved period | Bonded release, timely cancellation |
Domestic sale is the most common scenario for wine, perfume and cosmetics: importers first complete labeling, kitting and other value-added operations in the bonded warehouse, then exit in batches aligned with actual sales — paying duty only on what is actually sold and keeping capital unburdened.
2. The Domestic-Sale Duty Payment Process
Selling bonded goods domestically is essentially a formal import declaration — the only difference being that the goods are already inside a bonded warehouse in China. The standard process:
- Confirm goods status: verify name, quantity, origin and HS code to determine applicable rates and licensing requirements.
- Prepare documents: contract, invoice, packing list, warehouse release order; goods subject to quotas, licenses or inspection (e.g. certain foods and cosmetics) must have the documents in place first.
- File the declaration: declare the domestic sale through the "single window" under the appropriate customs supervision mode.
- Dutiable value review: the customs value is based on the actual domestic-sale transaction price as verified by customs.
- Pay duties: pay customs duty, import VAT and consumption tax (if applicable); goods are released after payment.
- Book reconciliation: deduct the exited quantity from the warehouse ledger so books match physical stock for customs audit.
3. Dutiable Value and Reference Rates for Wine and Perfume
The dutiable value for domestic sale is generally the actual transaction price of the goods sold domestically — not the declared value at warehousing. Companies should keep genuine sales contracts and settlement records; prices that are clearly understated without justification may be revalued by customs.
Using the two most common categories as examples (MFN rates, subject to customs determination):
- Imported wine (bottled): typically involves customs duty (about 14% at MFN), VAT at 13% and consumption tax at 10% — a heavy combined burden, which is why many traders exit in batches to minimize tied-up duty capital.
- Imported perfume / high-end cosmetics: customs duty (per HS code), VAT at 13% and consumption tax at 15% (high-end cosmetics), likewise assessed on actual status at exit.
This is where the bonded warehouse's "duty deferral" value lies: no duty capital is occupied before exit, and the exit schedule matches the sales schedule. For cost structure and saving strategies, see our guide on red wine bonded storage costs.
4. Temporary Exit and Re-export: Two Other Common Paths
Besides domestic sale, two other exit needs are worth knowing. Temporary exit covers exhibitions, repair and testing: goods leave under a guarantee or deposit and must return within the approved period, otherwise they are converted to domestic-sale taxation. Re-export ships bonded goods directly overseas or to a third country with no import duty at all — the classic international transit model, covered in our bonded re-export and transit guide. Wine and perfume brands exhibiting at the CIIE and similar fairs frequently use temporary exit for display items — be sure to complete cancellation on time.
5. Common Risks and Compliance Points
Compliance risks at the exit stage concentrate in three areas: incorrect HS code declaration (wine and perfume have adjacent but different codes with very different rates), distorted dutiable values (under-declaration carries serious audit consequences), and ledger-physical mismatches (failure to reconcile after batch exits affects the company's customs credit rating). We recommend working with an experienced bonded warehousing partner and re-checking HS codes before each exit.
FAQ
Q1: Is there a time limit for storing goods in a bonded warehouse? A: Under GAC Order No. 105, the storage period is generally one year; extensions may be granted by customs in special circumstances. Goods should be sold domestically, re-exported or returned within the period.
Q2: Which price is taxed on domestic sale? A: The actual domestic-sale transaction price as verified by customs, plus import duty and taxes; prices clearly understated without justification may be revalued.
Q3: What taxes apply when wine exits a bonded warehouse for domestic sale? A: Typically customs duty (about 14% at MFN, per HS code), VAT at 13% and consumption tax at 10%, subject to customs determination.
Q4: Can bonded goods temporarily exit for exhibitions? A: Yes, with customs approval under a guarantee for display and similar purposes, provided they return and are cancelled within the approved period; otherwise they may be converted to domestic-sale taxation.
Q5: How is the ledger handled with batch exits? A: Each batch is deducted from the warehouse ledger after customs filing and duty payment; companies should keep books matching physical stock for customs audit.
Yunxiu (Shanghai) Warehousing & Logistics provides bonded warehouse leasing, wine and perfume bonded storage, Chinese-label affixing, kitting and temporary import/export of display goods in the Shanghai bonded area, and can assist with exit filing and ledger management. Further reading: How Is Red Wine Bonded Storage Cost Calculated, Imported Wine Customs Clearance Guide, Perfume Bonded Warehouse Guide, Bonded Re-export and Transit Guide, Double 11 Bonded Stocking Plan.
