Bonded goods refer to goods shipped from abroad, stored under Customs supervision, and conditionally exempted from paying duty before the completion of Customs clearance procedures. Paying duty or not depends on whether such goods ended up being imported into the country or re-exported abroad.
  Generally, when goods shipped into the country from abroad, apart from paying duty and import, they may also be transitted to a third place, on consignment sale, re-exported for processing and then re-imported.  The goods under Customs procedures are subject to paying duty while also legitimate for being placed in bond. 
   The system of placing such un-taxed goods under Customs supervision to prevent them from flowing into the tax area is called bonding system, which simplifies Customs clearance procedures, relieves burden for importers/exporters, reduces costs of goods, attracts foreign investments, and enhances technology level for the industry 
    Bonding can be divided into the following four categories:
                1. Clearance procedures bonding:
   For supervising goods under Customs clearance procedures, including goods in jointly-locked warehouses, container terminals, bonded transport means, transport under escort or sealed delievery.
                2. Credit extended bonding:
   Bonded raw material recorded in books by manufacturer.
                3. Premises bonding:
    Bonded warehouse, bonded factories, duty-free shops, logistics centers.
                4. Region bonding:
   Technology industrial parks, science parks, free trade zones, agricultural technology parks.