Q.Write short notes on Bonded warehouses.

A bonded warehouse is a customs-licensed warehouse, usually located at a port, where dutiable imported goods are stored until the importer pays the customs duty and clears them.

Meaning

A bonded warehouse is a warehouse that is licensed by the customs authorities and situated near a dock or port. It is used to store imported goods on which the customs duty has not yet been paid. The importer can leave the goods in the bonded warehouse and take delivery of them, wholly or in part, only after paying the customs duty due on that quantity. This arrangement helps an importer who is short of funds or who wishes to clear goods gradually, and it allows certain operations (such as grading, packing and labelling) under customs supervision. Th …

A bonded warehouse is a customs-controlled, government-licensed warehouse near a port where imported goods are stored before import duty is paid; goods stay under customs lock and can be released only on payment of duty.

Bonded Warehouses

In the TS Intermediate 2nd-year Commerce trade unit, a bonded warehouse is a special warehouse that is licensed by the government and supervised by the customs department. Its purpose is to store imported goods on which customs (import) duty has not yet been paid.

Key features:

• The goods lie 'in bond' — that is, under the lock and control of customs — and the importer cannot take them out until the duty is paid.
• The importer may clear the goods in full or in instalments as and when he can pay the duty, which is a great help when he lacks funds to pay the whole duty at once. …