Question

What is bonded warehouse?

What are bonded warehouses?

Answer 1

1. A bonded warehouse is established under a bond with the customs authorities to store dutiable goods until the payment of import duty.
2. The owner of a bonded warehouse gives an undertaking not to release the goods until the customs duty is paid.
3. Bonded warehouses are located in port towns and are licenced by the government.
4. These warehouses operate under the vigilance of customs officials.
5. Bonded warehouses accept imported goods for storage before the payment of customs duty.
6. Once the duty is paid, goods are released on the authority of a warrant issued by the customs authorities.