Ring located in bamboo craft (5)
I believe the answer is:
canoe
'craft' is the definition.
(canoe is a kind of craft)
'ring located in bamboo' is the wordplay.
'ring' becomes 'o' (letter resembling a ring).
'located in' is an insertion indicator.
'bamboo' becomes 'cane' (cane-producing plant).
'o' inserted inside 'cane' is 'CANOE'.
(Other definitions for canoe that I've seen before include "Primitive boat" , "Light, narrow open boat" , "Light boat propelled by paddle(s)" , "A dugout" , "Small and light boat, pointed at both ends" .)