|



Prasenjit Roychoudhury (25)
Sarup Paul (32)
Subhajit Ghosh(39)
 







 

Ä plso known as a 0
G
Ä pcts sort of like a no man's land where goods can be deposited without
an importer or an agent needing to pay duties on them
Ä Decides to sell the goods for re-exportG duties will not be incurred.
Ä If the goods are destroyedG the obligation to pay duties will also be
resolved
Ä If the imported goods are released for saleG howeverG customs duties
will come due
 Previous to the establishment of bonded warehouses in
England the payment of duties on imported goods had to
be made at the time of importation-
Ä It was not always possible for the importer to find suretiesG
and he had often to make an immediate sale of the goodsG
in order to raise the dutyG frequently selling when the
market was depressed and prices low;
Ä The dutyG having to be paid in a lump sumG raised the price
of the goods by the amount of the interest on the capital
required to pay the duty;
Ä Competition was stifled from the fact that large capital was
required for the importation of the more heavily taxed
articles;
Ä In 1733G Sir Robert Walpole tried a
solution to the import problem
when he came up with his system
to place tobacco and wine in
designated warehouses.
Ä The proposal was unpopularG and
it was not till 1803 that the system
was actually adopted.
Ä Imported goods were to be placed
in warehouses approved by the
customs authoritiesG and
importers were to give bonds for
payment of duties when the
goods were removed.
Source: Wikipedia
 |



0 

!" 


# $

$ 


Source: Wikipedia
Ä Rules are country specific
Ä Two types of Bonded warehouse
in India
2
% - Private companies
generally contract out their
warehouse space. These private
companies will sometimes cover
the cost of the duties and fees for
the importer.
2 - government agency
Governed by Indian customs act
Chapter7 rules 138 to 173
Ä USp 11 types
Ä Sorting
Ä Repacking
Ä Relabeling
Ä Remarking
Ä Regaining
Ä pssembled
Ä Stored
Ä Manipulated
Ä Salvaged
Ä Cleaning
Ä Processed
Ä Sampled

%
Ä The importer can store their goods without having to pay
the immediate duties on them
Ä If the importer sells the products for re-exportG they do not
have to pay any duties at all.
Ä By placing the goods in a bonded warehouse that has
adequate insuranceG the value of the goods will be covered
should they get damaged or destroyed while in storage.
Ä If the products are damaged or destroyedG then the
importer does not have to pay custom duties.
Ä By having bonded warehousesG it frees up cash flow for
importers. They can also take their time to market their
good properly to get the best price possible.
#&'