Bonded Warehouses

Answer: Bonded warehouses are warehouses licensed by the government to store imported goods on which customs duty has not yet been paid.

They are usually located near ports and are run by the government, port authorities or licensed private parties under the control of customs authorities. An importer can keep goods there and take delivery in parts by paying duty proportionately. Goods can also be re-exported without paying duty. They help importers who cannot pay the full duty at once, and goods can be packed, graded or blended while in the warehouse.