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