Bonded warehouse

Temporary storage premises offer the possibility of storing goods that enter the customs territory of the EU awaiting further customs-approved use or treatment.

Type B warehouses are licensed by the concerned customs authorities to act as custodian and escrow to store goods until duty is paid by the importers.

Unlike a free warehouse, a special economic zone is not a building or premises, but a location which has been carefully charted and recorded.

Under such a complex circumstances, many importers and exporters try to use automation to help manage issues in bonded warehouse which, to some extent, can respond rapidly to customer orders and dispatch products.

c. 107) dispensed with the giving of bonds, and laid down various provisions for securing the payment of customs duties on goods warehoused.

By section 12 of the act, the treasury may appoint warehousing ports or places, and the commissioners of customs may from time to time approve and appoint warehouses in such ports or places where goods may be warehoused or kept and fix the amount of rent payable in respect of the goods.

The act also prescribes various rules for the unshipping, landing, examination, warehousing and custody of goods, and the penalties on breach.

The system of warehousing has proved of great advantage both to importers and purchasers, as the payment of duty is deferred until the goods are required, while the title deeds, or warrants, are transferable by endorsement.

While the goods are in the warehouse ("in bond") the owner may subject them to various processes necessary to fit them for the market, such as the repacking and mixing of tea, the racking, vatting, mixing and bottling of wines and spirits, the roasting of coffee, the manufacture of certain kinds of tobacco, etc., and certain specific allowances are made in respect of waste arising from such processes or from leakage, evaporation and the like.