Bonded goods

Updated: Aug 20, 2021

Imported goods on which duty, either customs or excise, has not been paid. They are put in a bonded warehouse pending either payment of the duty or re-export. The owner of the warehouse guarantees that duty will be paid if the goods are released. If he does otherwise he is subject to stringent penalties, stated in the bond itself. Bonded goods may be moved from one bonded warehouse to another. Goods may be released in any quantity in the presence of a customs official. The document authorizing removal is called a warehouse warrant. This describes the goods and the duty and is also a delivery order. If goods are re-exported the customs authorities issue a bond note on one side of which is an order authorizing release of the goods and on the other a statement that the warehouse owner will pay twice the duty if any irregularities occur.

Reference: The Penguin Business Dictionary, 3rd edt.

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