Bonded warehouse - Explain

What is Bonded warehouse

 

Meaning of Bonded warehouse. what are the benefit of Bonded warehouse.

Bonded Warehouse is a warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed. When goods enter a bonded warehouse, both the importer and the warehouse proprietor incur financial and legal liability under a bond. 

 

The concept of custom Bonded Warehousing has been promoted with a view to facilitate deferred payment of custom duty to encourage entrepreneurs and export oriented units to carry out their operations with least investment. The goods kept in the warehouse are safe and hence importer gets the time to arrange for the customs duty meanwhile. If the goods are not required immediately, they can keep in bonded warehouse for some time. If the importer doesn’t have his own warehouse, he can transfer the title of goods to someone else while the goods still being in bonded warehouse and then buyer can pay the custom duties to get the goods. Importers can store their un-cleared cargo in bond facility, thereby avoiding heavy container demmurage or paying Customs Duty up front.


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