Monday, November 13, 2006

Bond warehouse

It is a document issued by the state or private enterprises. This bond warehouse is issued by the warehouse to the importer for the goods stored in the warehouse. This bond is created for the importer, who is liable to pay import duty for the goods imported. Before this establishment of bonded warehouse in England, payment of duties and taxes on importation has to be made during the time of import or a surety bond is to be forwarded to the revenue authority for future payment. This bonded warehouse is regulated by uniform commercial code, to have a degree of negotiability. This system is difficult to the importer, because he has to find a surety to market his product. He has to arrange immediately because when the market get depressed and the prices becomes low, he has to high duty.

In this bonded warehouse scheme, the imported goods stored for the purpose of re-sale shall be exempted from payment of import/export taxes and duties, in spite of export as the goods imported or in the nature of having been manufacture.


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