STUDENTS' CORNER - 81
A bonded warehouse is a secured area or a building wherein imported goods are kept till all the dues like import duties and taxes are paid and thus cleared for export. It is also called customs warehouse.
Such warehouses are generally situated near ports.
A bonded warehouse can be managed by the state authorities or by a private party. When the goods are in the bonded warehouse, they can be manipulated, under the supervision of the customs authority, by cleaning, sorting, repacking etc.
When the goods are received by the importer, the warehouse proprietor along with the importer incurs liability under a bond. The liability is generally cancelled under certain circumstances. The goods must be exported or deemed exported. The goods may be withdrawn for supplies to a vessel or aircraft in international traffic. The goods can also be destroyed under supervision of the Customs or the goods may be withdrawn for consumption domestically but only after clearing the dues.
The importer can check his goods whenever he wants. When he makes part payment, he can proportionately withdraw the goods from the warehouse.
In fact, the importer can also raise bank loan based on the receipt given by the warehouse and the receipt can be made use of as a collateral security.
Though the importer cannot take away the goods for business without payment of dues, he can rest assured that his goods will be secure and will be free from any risk of exposure or threat of theft and of damage.
As the name itself suggests, it is a warehouse meant for a particular commodity which can be stored safely. For example, commodities like tobacco, cotton and wheat require specialized warehouses to store and protect them from any damage or deterioration. Without storage tanks, petrol cannot be stored and huge warehouses are required with temperature control for fruits and vegetables. Proper arrangements must be made to store tobacco; the tender leaves must be protected and not only that, the peculiar aroma associated with tobacco also must be protected. A warehouse that stores merely steel will not do to store these commodities.
Of course, warehouse providers, that is, the logistics providers do make necessary arrangements for a kind of goods and announce to the business that they will be their product-friendly warehouse providers.