Bonded Warehouse

Definition - What does Bonded Warehouse mean?

A bonded warehouse is a warehouse that holds imports. These warehouses are secured and managed by customs agencies. The purpose of a bonded warehouse is to hold the imports until duties are paid on the goods if such duties are required by law. Once the duties are paid and any other relevant legal matters are taken care of, then the imports can be released into the county for consumption.

Justipedia explains Bonded Warehouse

If a company refuses to pay any required duties on the items, then the goods can be denied entry into the country. Duties can be an important revenue generation vehicle for nations, and that is why they can be taken quite seriously. Bonded warehouses are also known as customs warehouses. In addition to duties, there can also be other charges that must be paid in order for the goods to be released from the bonded warehouse for consumption.

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