Q.4 (3) Bonded warehouse and Duty paid warehouse.
Best answer
Answer:
| Points | Bonded warehouse | Duty paid warehouse |
|---|---|---|
| 1. Meaning | A warehouse licensed by the Government to store imported goods on which customs duty has not yet been paid. | A warehouse used to store imported goods after the customs duty has been paid. |
| 2. Payment of duty | Goods can be kept without paying duty; duty is paid when goods are taken out. | Duty is already paid before the goods are stored. |
| 3. Location | Located near ports. | Located near ports or in the market area of the importer. |
| 4. Control | Under the control and supervision of customs authorities. | Not under customs control; managed by owners/importers. |
| 5. Benefit | Importer can pay duty in instalments as goods are cleared, and can re-export goods without paying duty. | Goods are ready for immediate sale in the domestic market. |
| 6. Users | Used mainly by importers and re-exporters. | Used by importers and traders who sell in the home market. |
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