| In simple terms, A Bonded Warehousing can be | | | | system such as it was difficult for the importer sell |
| defined as storage, manipulation, or further | | | | the good immediately at low prices in order to raise |
| manufacturing of dutiable goods in a building or other | | | | the duty. The duty on the good had to be paid in a |
| secured area without the payment of duty on it. | | | | lump sum, increased the price of the goods by the |
| Nowadays almost all developed countries employ this | | | | amount of interest on the capital required to pay the |
| system. There are few things associated with | | | | duty. |
| bonded warehousing and the purpose of this article is | | | | To overcome these issues, the concept of bonded |
| to explain those important points. It is important to | | | | warehousing introduced, however it was not much |
| note that when goods entered into a bonded | | | | popular till 1803 but later the system was adopted. |
| warehouse, the importer and warehouse proprietor | | | | Different businesses can benefit from using a bonded |
| acquire liability under a bond. This liability is generally | | | | warehouse such as drinks industry, retailers, |
| cancelled under certain conditions such as when the | | | | pharmaceuticals, automotive and 3PL. It is understood |
| goods are" | | | | that most companies do not sell their goods within |
| • Exported; or deemed exported; | | | | four weeks of receiving stock into their warehouse. |
| • Withdrawn for provisions to a ship or aircraft | | | | It means that they will have paid the Duty and VAT |
| • Destroyed under Customs supervision; or | | | | up front on their entire stock. With the help of |
| • Withdrawn for consumption locally after | | | | bonded warehousing all of their stock can be referred |
| payment of duty. | | | | as "Duty Suspended". |
| Earlier to the induction of bonded warehousing | | | | Granby a leading marketing company that provides |
| concept the payment of duties on imported good | | | | cutting-edge marketing and bonded warehousing |
| had to be made at the time of importation, or a | | | | services to blue-chip clients, promotional marketing |
| bond for future payment handed to revenue | | | | companies and public sector organizations. |
| authorities. There were several drawbacks of this old | | | | |