ECONOMIC & OTHER ADVANTAGES OF BONDED WAREHOUSES

The following services are rendered by a bonded warehouse:

  • The goods are stored in bonded warehouse without payment of custom duties. The goods are stored till the importer is able to arrange for the payment of import duty. Because of this facility the importer is saved from the payment of heavy duty at a time.

  • Warehouse facilitates the conduct of various operations which make the goods suitable for marketing. the importer is permitted to divide, mix and pack the goods when these are kept in the warehouse.

  • It facilitate re-export of goods without much financial expenditure because the imported goods meant for re-export are kept in the warehouse.

  • The importer can effect sale of goods or transfer the title of goods by endorsing the warehouse receipts. By this it enables to save much on part of the importer.

  • The owner of the goods is allowed to brand, grade, label and pack the goods when these are in bonded warehouses. By this provision, it facilitates proper marketing of goods.

  • Goods kept in bonded warehouse are used as collateral security for bank loan.

  • Goods kept in bonded warehouse are safe and are free from the fear of being stolen or damaged.