A bonded warehouse is a type of warehouse you can sell products from without paying tax in China.
VAT refund #
If your products are shipped to the bonded warehouse, you can apply for a VAT refund. The amount of the refund is 9.1%.
When selling from Mainland China, you can refund VAT after the products are shipped to the bonded warehouse. You don’t need to pay the tax upon export.
If you sell from Hong Kong and are exempt from VAT, you can ship products to bonded warehouses without paying VAT.
Documents for customs #
The products are getting checked by the customs while shipping to the bonded warehouse. This reduces the delivery time.
Ask the selected warehouse for the document list for delivery.